A confluence of Factors Lifted Alphabet (GOOG) in Q4

Munro Partners, an investment management firm, released its “Munro Global Growth Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the December quarter, the Fund returned -0.7%. The Fund’s long positions contributed to the performance, while short positions, hedging, and currencies detracted. Global equity markets delivered solid performance in 2025. US markets posted strong gains in the quarter, with the S&P 500 up 2.4% and the Nasdaq up 2.3%. Europe and Japan were among the stronger performance contributors. For more information on the Fund’s best picks in 2025, please check its top five holdings.

In its fourth-quarter 2025 investor letter, Munro Global Growth Fund highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG) stood out as the leading performer of the strategy in the quarter. Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. On January 13, 2026, Alphabet Inc. (NASDAQ:GOOG) stock closed at $336.31 per share. One-month return of Alphabet Inc. (NASDAQ:GOOG) was 12.83%, and its shares gained 70.73% of their value over the last 52 weeks. Alphabet Inc. (NASDAQ:GOOG) has a market capitalization of $4.06 trillion.

Munro Global Growth Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its fourth quarter 2025 investor letter:

“Alphabet Inc. (NASDAQ:GOOG) was the top contributor during the quarter. The U.S.-headquartered technology conglomerate’s stock price jumped after it delivered impressive third-quarter earnings. Search revenue growth beat consensus expectations as Google continues to see strong user engagement trends. Results were also ahead of expectations in the Cloud segment, and the outlook for this business remains robust given accelerating demand for AI compute. We continue to believe Alphabet is undervalued on a sum-of-the-parts basis and see potential for the company’s AI leadership to drive further upside across the portfolio.

Alphabet contributed 96 bps to Fund performance for the quarter.

As the parent company of Google, Alphabet has long operated at the forefront of technology. To this day, Google remains synonymous with internet search and has consistently commanded 90% of the global search market for multiple decades. Beyond its dominance in digital advertising, the company is driving innovation across generative AI, cloud computing, enterprise software, and pioneering ventures in areas such as autonomous vehicles (Waymo) and quantum computing…” (Click here to read the full text)

Sentiment Mixed, But BofA Still Sees Long-Term Upside in Alphabet (GOOGL)

Alphabet Inc. (NASDAQ:GOOG) is in the 7th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 186 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the third quarter which was 178 in the previous quarter. In the third quarter of 2025, Alphabet Inc. (NASDAQ: GOOG) achieved its first-ever $100 billion in revenue. While we acknowledge the risk and potential of Alphabet Inc. (NASDAQ:GOOG) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Alphabet Inc. (NASDAQ:GOOG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Alphabet Inc. (NASDAQ:GOOG) and shared the list of best long term growth stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.