Shares of Alphabet ( GOOG 4.61%) ( GOOGL 4.69%) have finally come to life on Wednesday after the company's I/O presentation yesterday. Alphabet announced numerous new AI products and advances that show Google is leading in artificial intelligence (AI), not falling behind.

Alphabet stock was sliding Tuesday afternoon as the Google I/O keynote announcements initially seemed to underwhelm investors. Alphabet shares dropped as the company shared AI news, with several of the AI updates announced scheduled to come in the weeks and months ahead.

Looking at Google Services in more detail, it was especially Google subscriptions, platforms, and devices, which increased with 18.8% year-over-year to $10,379 million. YouTube ads also increased 10.3% year-over-year to $8,927 million in Q1/25.

The search giant currently trades at a price-to-earnings ratio ( P/E) of just 18.5, which is close to a 30% discount from the S&P 500 's P/E of 25.9. That discount comes as Alphabet's growth remains solid. In its first-quarter earnings report, revenue rose 12% to $90.2 billion, with operating income jumping 20% to $30.6 billion.

Alphabet Inc. (NASDAQ:GOOGL)’s Google announced Google AI Ultra, a new high-end AI subscription service that costs $249.99 a month, at its annual developer conference, Google I/O.

An exchange-traded fund that focuses on Big Tech stocks was advancing Wednesday, propelled by a big gain in shares of Google parent Alphabet Inc. The Roundhill Magnificent Seven ETF, which holds Alphabet,

Investors seem unimpressed by Google’s announcements during I/O 2025. Alphabet’s stock was down 1.2% during the keynote. However, other tech stocks, including Meta and Nvidia, were also down on Tuesday morning.

Shares of Alphabet have dropped 12% this year amid concerns that Google won't be the leader in search as generative AI becomes increasingly popular. Alphabet is hosting its annual software conference on Tuesday,

Volvo Cars and Alphabet's Google said on Wednesday the Swedish carmaker was now the lead development partner for Android automotive software, which should give its buyers access to new versions long before they are available via car industry rivals.

The Aura glasses are expected to launch for consumers between the end of this year and early next year, likely costing thousands of dollars.