Alphabet Shares Rally 2.44% on AI and Cloud Growth, 12th in $4.92B Liquidity

Alphabet's Class C shares (GOOG) surged 2.44% on August 8, 2025, with a trading volume of $4.92 billion—up 70.17% from the prior day, ranking 12th in market liquidity. The rally coincided with heightened investor interest in the stock, driven by its AI-driven Search business and robust Google Cloud growth.

Analysts highlighted Alphabet's strategic integration of AI across its core operations, including multimodal search features like "Circle to Search" and AI Overviews, which now serve over 2 billion monthly users. Google Cloud revenue grew 31.7% year-over-year to $13.62 billion in Q2 2025, outpacing expectations. Partnerships with NVIDIA and PayPal further bolstered cloud infrastructure and AI capabilities.

Despite these positives, regulatory challenges loom. The U.S. Department of Justice's antitrust case against Alphabet, seeking to break up its Search, Chrome, and Android divisions, remains a key risk. Analysts at DA Davidson and Zacks Investment Research noted valuation concerns, with a forward Price/Sales ratio of 6.64x, higher than Amazon but lower than Microsoft. Earnings estimates for 2025 have risen by 4% over 30 days, reflecting optimism about long-term AI and cloud growth.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day generated a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This underscores the influence of liquidity concentration on short-term stock performance, particularly in volatile markets.