Alphabet's Google launches AI search feature; stock up 0.7%

Alphabet GOOGL.O stock last up 0.7% after the Google owner launched an experimental AI-driven search engine that replaces traditional 10 blue links with AI-generated summaries

The gain in GOOGL compared to a 0.5% rise in the S&P 500 tech index .SPLRCT and a 0.8% increase in the S&P 500 consumer services index .SPLRCL

The new feature, available to Google One AI Premium subscribers, offers AI summaries with hyperlinks, improving user experience and search capabilities

Alphabet's 2024 rev of $350 bln was primarily from search-related ads; co faces challenges from AI competitors, highlighting importance of AI integration

GOOGL down ~9% YTD, compared to 5% fall in Nasdaq .IXIC; recently traded at 18x expected earnings, below 5-year avg forward PE of 23, per LSEG

Stock ~17% below 52-week intraday high of $207.05 reached on Feb. 4, 2025