Alphabet's $4.207 Billion Trading Volume Lands 14th in Market Activity as AI Innovations Drive Growth

On May 27, 2025, Alphabet's trading volume reached $4.207 billion, ranking 14th in the day's stock market activity. GOOG shares rose by 2.59%.

Alphabet is seen as undervalued, with excessive pessimism surrounding its search engine and insufficient optimism about its leadership and innovation in AI. The company's AI capabilities are expected to drive significant growth in the future.

Google's partnerships and ad integration are positioning it to benefit from AI-driven search growth. The company's recent AI tools, including "AI Mode," have been well-received by Wall Street, as they lay out a detailed plan to maintain dominance in the web search market.

Alphabet's shares are extremely volatile, with 39 moves greater than 2.5% over the last year. The recent announcement of new AI tools at its annual I/O show has been well-timed, given recent concerns about users leaning more on LLMs like ChatGPT as their default search product.

Google's AI Mode, a chat bot integrated into its search engine, makes it faster for users to access Google's AI search feature. The company also introduced new AI-powered products, including Google Beam, a video chat platform, and AI-powered smart glasses in collaboration with Warby Parker. For content creators, Google teased Veo 3, their next-gen AI video generator.

In terms of monetization, Google announced a new 'AI Ultra' subscription plan that could fetch up to $249.99 per month, indicating a heavy investment in enterprises and high-end users. Citi analyst Ronald Josey with a Buy rating and $200 price target summed up the Street's sentiment, adding that Alphabet's product cadence and user adoption of newer tools are ramping, which should provide some stability for Search growth.

Overall, the announcements indicate that Alphabet is not just keeping up in the AI race but is better positioned in the fast-evolving market. The company generates 56% of its revenue from Google Search, making it a vital part of its business model. Looking ahead, Alphabet will deliver solutions through a human+AI model, invest in AI infrastructure, and forge industry-best partnerships.