Alphabet (NASDAQ:GOOG) balances bullish AI-driven growth—Morgan Stanley raised its target on booming Cloud, TPUs and Gemini models and large compute deals—with regulatory and legal headwinds in Europe, Sweden and South Korea, while equity moves and a big share sale attract major investors.

Previous Week Recap

  • Goog Target Raised, AI Spend: Morgan Stanley lifted GOOG target to $415. Forecast: ~$375B AI spend by 2028, ~9 GW compute by 2028, Google Cloud revenue +106% in 2027, +44% in 2028, TPUs could add ~$80B.
  • Alphabet Upsizes $84.75B Offering: Alphabet Class C (GOOG) raised and upsized an equity offering to $84.75B in early June; Berkshire Hathaway committed $10B via private placement, boosting the share issuance size.
  • EU Upholds Alphabet Fine: European Court of Justice upheld EU antitrust fine of about €4.1–4.125B against Alphabet (GOOG) over mandated pre-install of Google apps for Play Store licensing; ruling is final and binding.
  • GOOG Joins Dow, Rally: GOOG jumped about 3–5% after joining the Dow, with intraday gains near 4.8% and a premarket spike around $353.56 as Dow-tracking funds bought shares.
  • Swedish Court Orders $1.97B: Alphabet Inc. Class C (GOOG) was ordered by a Swedish court to pay about $1.97 billion over alleged search favoritism for its shopping service; Google says it will appeal.
  • Gemini Access Limits, SpaceX Compute: GOOG limited external access to Gemini AI in March due to compute constraints, impacting Meta most. Alphabet is expanding capacity via a large SpaceX compute agreement reportedly about $920M monthly.
  • Korea FTC Probe Favoring Google: South Korea’s FTC says Alphabet (GOOG) ran a 2019–Mar 2026 incentive program urging developers to favor Google Play, impacting about ₩14.16T (~$9.1B) in revenue; Google has eight weeks to reply.
  • Nano Banana 2 Lite Launch: GOOG: Alphabet rolled out Nano Banana 2 Lite, a faster, low-cost Gemini Image model—~4s per text-to-image, $0.034 per 1,000 images—available across developer tools and consumer apps.
  • UK App Store Payment Probe: GOOG: UK regulator seeks to force app-store payment alternatives; Google says it has acted. Consultation runs to July 28; decision due later this year — potential impact on Google’s app revenue.
  • Free Gemini Image Gen: GOOG rolls out free personalized AI image generation in Gemini app for eligible U.S. users, using Nano Banana and optional links to Gmail, Photos, YouTube and Search; adjustable permissions.

This is an AI-generated summary and may contain inaccuracies. Please verify any important information with the original sources.