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Alphabet's Trading Volume Drops 43% Ranking 13th in Market Activity

Market BriefMonday, May 19, 2025 8:01 pm ET

1min read

On May 19, 2025, Alphabet's trading volume reached $34.76 billion, a 43% decrease from the previous day, ranking 13th in the day's stock market activity. Google's Class C shares (GOOG) rose by 0.26%, marking two consecutive days of gains and a total increase of 1.49% over the past two days.

Alphabet's stock has faced challenges this year, with shares down by 12% in 2025. This underperformance is partly attributed to broader market volatility, which has affected the company's stock price. Despite this, Alphabet continues to be a leader in artificial intelligence (AI) innovation, leveraging machine learning and generative AI capabilities to drive growth across its diverse product ecosystem.

In the first quarter of 2025, Alphabet's revenue climbed by 12% year over year, while adjusted earnings per share (EPS) surged by 49% from the prior year quarter. The company is seeing higher advertising conversions across its Google Search and YouTube platforms. Additionally, there is strong enterprise-level demand for its AI infrastructure and generative AI solutions through Google Cloud Platform (GCP), where revenue climbed by 28% from last year.

Alphabet's management has expressed confidence in the company's outlook, increasing its quarterly dividend rate by 5% this year and announcing a new $70 billion share repurchase authorization. The stock's valuation is compelling, trading at just 17.5 times its consensus 2025 EPS as a forward price-to-earnings (P/E) ratio, which is well below the company's five-year average for the earnings multiple.

Analysts have suggested that it might be time for Alphabet to rebrand as Gemini, indicating a need for the company to build and innovate further. Despite the challenges, Alphabet remains a top long-term growth pick with leading AI capabilities and strong platforms like Search, YouTube, and Cloud.

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