Alphabet Shares Drop 2% to $381 After Google I/O AI Unveilings

Alphabet shares closed nearly 2% lower near 381.65 following its Google I/O 2026 event, as investors reacted to a broad but commercially focused slate of AI updates. Ahead of the conference, Laffer Tengler’s Nancy Tengler advised trimming Google positions to lock in profits. During the event, Sundar Pichai highlighted five core apps exceeding 3 billion users and introduced Gemini 3.5 Flash plus Gemini Spark agent tools. Bank of America upgraded to Buy citing product leadership, while UBS stayed Neutral, noting new AI Ultra subscriptions are unlikely to lift near-term forecasts. Shares remain up 21% year-to-date despite mixed monetization views.