Alphabet's Trading Volume Drops 24 Percent to 11th Place as AI Concerns Mount

On April 10, 2025, Alphabet's trading volume reached $54.64 billion, marking a 24.21% decrease from the previous day. This placed Alphabet at the 11th position in terms of trading volume for the day. The stock price of Google Class C (GOOG) fell by 3.53%.

Investors are expressing concerns about the potential impact of artificial intelligence (AI) on Alphabet's search market share, leading to questions about whether the company's stock is undervalued. This uncertainty has sparked discussions about the future of Alphabet's search business in the face of AI advancements.

Jim Cramer has highlighted that generative AI poses an 'existential threat' to Google Search, raising concerns among AI stock investors. This sentiment reflects the broader market's apprehension about the rapid advancements in AI technology and its potential to disrupt traditional business models.

Despite these challenges, some analysts view the current dip in Alphabet's stock as a rare generational buying opportunity. If the company can successfully execute its AI strategy and continue to grow its earnings, long-term investors may find this period advantageous for investment.

Alphabet's significant investments in AI infrastructure and research are positioning the company to capitalize on the growing importance of AI across various sectors. However, analysts warn that rising infrastructure costs could drive up cloud prices, adding to the financial burden of these investments.

Investors are scrutinizing Alphabet's $75 billion AI spending plans, questioning the justification for such massive expenditures amid economic headwinds. This scrutiny comes as the company faces geopolitical and economic uncertainties, further complicating its financial outlook.

Alphabet's diversified portfolio includes cloud computing, ad-based video and music streaming, autonomous vehicles through Waymo, and healthcare via Verily. The company is expected to release its fiscal Q1 2025 earnings results on April 24, with analysts predicting a profit of $2.02 per share, up 6.9% from the previous year. Alphabet has a history of surpassing Wall Street's bottom-line estimates, having done so in the last four quarters.