ClearBridge Large Cap Growth Strategy’s Views on Alphabet (GOOG)

ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Growth Strategy” fourth-quarter 2025 investor letter. The investment philosophy of the strategy is to invest in leading companies that are undervalued by the market in terms of their future growth potential. A copy of the letter can be downloaded here. Large-cap stocks continued their strength in the quarter, driven by strong earnings growth from mega-cap companies and enthusiasm over generative AI. The ClearBridge Large Cap Growth Strategy underperformed the Russell 1000 Growth Index by approximately 900 basis points for the year. It continued to lag behind the benchmark, trailing its 1.2% quarterly advance by about 170 basis points during the fourth quarter. The underweight exposure to mega-cap AI beneficiaries and lower-quality AI-related names contributed to the underperformance. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, ClearBridge Large Cap Growth Strategy highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). 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 7, 2026, Alphabet Inc. (NASDAQ:GOOG) stock closed at $322.43 per share. One-month return of Alphabet Inc. (NASDAQ:GOOG) was 2.78%, and its shares gained 65.02% of their value over the last 52 weeks. Alphabet Inc. (NASDAQ:GOOG) has a market capitalization of $3.89 trillion.

ClearBridge Large Cap Growth Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its fourth quarter 2025 investor letter:

“In hindsight, we did not scale up our positions in Broadcom and Alphabet Inc. (NASDAQ:GOOG) enough. We had been consistently adding to Alphabet since repurchasing the stock in April 2024, as it had been trading at a sub market multiple, but regret not increasing our exposure more aggressively after the DOJ antitrust case concluded with less onerous penalties than feared. The company’s success with its Google Gemini chatbot and TPU chips for AI workloads boosted its shares more than 60% for 2025, causing our ~350 bps underweight to create a significant performance drag.”

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 stocks Jim Cramer recently discussed. 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.