Alphabet's $129.51 Billion Trading Volume Ranks Third as Google Faces AI Challenges

On May 22, 2025, Alphabet's trading volume reached $129.51 billion, ranking third in the day's stock market activity. Google A (GOOGL) rose by 1.37%, marking two consecutive days of gains, with a total increase of 4.20% over the past two days.

Artificial Intelligence (AI) poses a significant threat to Google's dominance in the search engine market. For the first time since 2015, Google's market share has fallen below 90%, highlighting the growing competition in the AI landscape.

Google has responded to the AI challenge by aggressively launching its own AI features while maintaining its core advertising business. The company's annual advertising revenue has increased by 20%, demonstrating its ability to adapt and innovate in the face of new technologies.

Google's recent AI advancements, showcased at the Google I/O 2025 developer conference, have garnered positive feedback from analysts. The event highlighted Google's AI platform, Gemini, and its potential to drive future growth. Analysts from firms like Wells Fargo, Morgan Stanley, Bank of America, and Evercore ISI expressed cautious optimism about Google's AI initiatives, noting that AI could enhance search activity and drive growth in key markets.

Google introduced a range of new AI features, including AI Mode, which can handle longer and more complex questions, and Beam, a video platform that turns 2D video into 3D in real time. Other notable features include XR glasses with translation and navigation, Smart Replies in Gmail, and new AI tools like Veo 3 and Imagen 4. Additionally, Google unveiled Agent Mode, an AI that can browse the web and perform tasks independently, which will be integrated into Search, Chrome, and the Gemini app.

Analysts believe that Google's aggressive rollout of AI across multiple products indicates confidence in its future prospects. However, the company's success will depend on its ability to execute these initiatives effectively and integrate AI deeply into its core search business to compete with AI-focused rivals.