$GOOGL · The Investor Channel · 2026-11-06

The challenges facing modern cloud computing companies, or even companies like Amazon, Meta, Google and Apple, will be discussed this week.

As for Google, its shares saw a sharp decline last week, followed by a slight recovery . The stock performed well this week, starting the week near $280 and then rising slightly to around $284 per share, which is not technically surprising given the large price drop we saw at the beginning of last week.

The company continues to release AI models; I don't want to say they are specialized, but they are different. Gemini Omni 1.2 Flash produces fast and cost-effective videos, given that the company owns YouTube, which means it has a huge amount of training data in this field.

We also don't see Anthropic competing strongly in this sector, and even OpenAI has withdrawn its Sora application, giving Google a good opportunity to become one of the leading companies, if not the leading company, in the field of AI models for video production.

The company asserts that this model produces 15-second clips faster, more consistently, and at a lower cost. This is something that will become extremely important in the future, especially in the field of robotics where it will be necessary to train the robot on artificial data, as these types of models will become very interesting.

It is true that the remaining employees receive larger compensation packages, and they are more competitive because they work in the field of artificial intelligence. They can move to other companies such as Anthropic, OpenAI, Microsoft, Groc, or any other company, or even start their own startups.

Therefore, the cost of retaining employees increases, but expenses can be reduced, and that is what this company is doing.

This week, the company joined Meta and Apple in raising funds from the bond market, raising approximately US$7.7 billion to continue funding the development of its artificial intelligence technologies .

But let me tell you, $6 billion , or $6.7 billion, for a company the size of Google, that shows how difficult it is, doesn't it?

Microsoft's backing out of two different deals this week is interesting, and I don't necessarily think we can consider it a trend, but I assure you that if Amazon, Google, and Meta start doing the same thing in the next two weeks, there will be significant losses to come.

We also talked about Google's stock closing below all of its moving averages, resulting in a large gap in the chart. The good news is that the stock has maintained its current level.

It was clear that you wanted to maintain the 270 level. If you had managed to break through the 270 level, as I had previously noted in my volume analysis, the stock could have experienced a sharp decline.

The moving averages are now negative. And again , can you gradually climb through it? The stock also formed a higher high and a lower low at the level of all moving averages. At least in the short term, at best, Google's stock is moving sideways.

In the worst-case scenario, the downward trend may have just begun. It is too early to say for sure , of course.