Google (GOOGL) Fell on Mixed Results

Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Large Cap Fundamental Value Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index fell by 4.3% during the first quarter of 2025. Until March, the market had been performing well, but investors began to struggle with the rapid policymaking of the Administration, especially concerning tariffs. In a significant shift from recent trends, the downturn was primarily driven by large-cap growth stocks. The Hotchkis & Wiley Large Cap Fundamental Value Fund (I Shares) returned 2.52% in the first quarter, outperforming the Russell 1000 Value Index’s 2.14% return. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, Hotchkis & Wiley Large Cap Fundamental Value Fund highlighted stocks such as Alphabet Inc. (NASDAQ:GOOGL). Alphabet Inc. (NASDAQ:GOOGL), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOGL) was 11.13%, and its shares gained 0.62% of their value over the last 52 weeks.  On June 9, 2025, Alphabet Inc. (NASDAQ:GOOGL) stock closed at $176.09 per share, with a market capitalization of $2.145 trillion.

Hotchkis & Wiley Large Cap Fundamental Value Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q1 2025 investor letter:

“Alphabet Inc. (NASDAQ:GOOGL) declined in the quarter after reporting mixed Q4 earnings results. Shares continue to trade at an attractive valuation despite healthy growth potential, an overcapitalized balance sheet, and significant value in Cloud, Other Bets, and new advertising products.”

Alphabet Inc. (GOOG)’s AI Ad Strategy Expands Reach—But Analyst Keeps Neutral Stance

A user’s hands typing a search query into a Google Search box, emphasizing the company’s search capabilities.

Alphabet Inc. (NASDAQ:GOOGL) is in 4th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 227 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOGL) at the end of the first quarter, which was 234 in the previous quarter. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOGL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Alphabet Inc. (NASDAQ:GOOGL) and shared the list of stocks Jim Cramer recently discussed. In addition, please check out our hedge fund investor letters Q1 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.