Here’s What Drove Alphabet’s (GOOG) Upswing

Magellan Asset Management, an investment management company, released the third quarter 2025 investor letter for “Magellan Global Fund”. A copy of the letter can be downloaded here. The fund focuses on outstanding companies at attractive prices and, at the same time, leverages a deep understanding of the macroeconomic landscape to manage risk. As measured by the MSCI World Index in USD, the global equities rose 7.3% in the September quarter. The portfolio underperformed the index in the quarter due strong performance of more speculative companies in the risk-on environment. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Magellan Global Fund 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. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was 8.55%, and its shares gained 56.92% of their value over the last 52 weeks. On December 03, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $309.32 per share, with a market capitalization of $3.73 trillion.

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

“The largest contributors to performance over the quarter were Alphabet Inc. (NASDAQ:GOOG), TSMC and ASML. Alphabet has performed strongly since the US District Court ruling on the Department of Justice’s anti-trust case. The judge ruled that Alphabet did not need to divest any parts of their business and allowed payments to partners for search distribution to continue, although they would be required to share some data with competitors and customers. This meant that the search business model could continue to operate largely unchanged, thereby removing a significant headwind on the stock. Separately, the successful integration and monetisation of AI Overviews within search results have further bolstered investor confidence.”

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 top AI and technology stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 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.