Alphabet Shares Drop 3.8% on Geopolitical Tensions

Alphabet Inc. shares declined sharply on Tuesday, dropping 3.8 percent to close at 290.44, as investors reacted to escalating geopolitical tensions in the Middle East and concerns over surging energy costs tied to the company's expanding artificial intelligence infrastructure. The stock traded as low as 290.33 during the session, with volume reaching 36.2 million shares, up slightly from the average of 34.1 million. This marked a retreat from Monday's close of 302.06 and extended a broader pullback, with shares down about 11.6 percent from a February peak near 350.

The downturn mirrored a global market selloff that began in Asian exchanges on Monday, where major indices suffered heavy losses. Japan's Nikkei fell approximately 1,800 points, India's Sensex dropped 1,750 points, and Hong Kong's Hang Seng declined 950 points. Technology stocks, including Alphabet's Class A (GOOGL) and Class C (GOOG) shares, faced particular pressure as oil prices rose amid fears of prolonged U.S.-Iran conflict disrupting energy supplies. Higher energy costs pose risks for Alphabet's data centers, which power its AI operations and require substantial electricity for training models like Gemini.