Goldman Sachs analyst Eric Sheridan noted that the decline in Alphabet's stock is primarily driven by two factors: a larger-than-expected slowdown in its search business during Q2, and significant talent departures, or "brain drain," from units like Gemini and DeepMind, which also saw delays in the Gemini 3.5 Pro model. This comes despite strong Q2 results, including an 82% surge in Google Cloud revenue to $24.8 billion and a 13% rise in YouTube revenue to $11.1 billion. Alphabet also raised its full-year capital expenditures guidance to $195 billion-$205 billion, with a "significant" increase projected for 2027.