Here’s What Positions Alphabet (GOOG) to Sustain Long Term Relevance

Mar Vista Investment Partners, LLC, an investment management company, released its “Mar Vista U.S. Quality Premier Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was a standout period for US equities, led by optimism over the Federal Reserve’s dovish pivot and the ongoing boom in artificial intelligence (AI). The S&P 500® Index and the Nasdaq Composite surged, representing technology’s relentless momentum.  In the quarter, the strategy returned +6.41% net of fees, compared to +8.00% and +8.12% returns for the Russell 1000 Index and the S&P 500 Index, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Mar Vista U.S. Quality Premier 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. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was 1.94%, and its shares gained 50.42% of their value over the last 52 weeks. On October 08, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $245.46 per share, with a market capitalization of $2.963 trillion.

Mar Vista U.S. Quality Premier Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its third quarter 2025 investor letter:

“With the “clearing event” of Judge Mehta’s remedies decision behind it, investor focus should shift back to Alphabet Inc.’s (NASDAQ:GOOG) fundamentals. While search revenue growth may moderate, the company’s leadership in search, AI, cloud computing, and YouTube is expected to sustain low double-digit growth. We believe Google’s durable competitive moat—anchored by its core search franchise, robust AI platform, and significant financial resources—positions it well to maintain long term relevance. AI investments are already bearing fruit, with Gemini outperforming peers on technical benchmarks. In addition, Google Cloud remains a powerful growth engine, and YouTube continues to deliver strong momentum. Collectively, these drivers should enable sustained EPS growth in the high teens to 20% range. Such performance would readily justify a 20x–25x earnings multiple and support meaningful upside potential, even after the recent 50% surge in Google’s share price.”

Alphabet Inc. (NASDAQ:GOOG) is in the 7th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 178 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the second quarter which was 164 in the previous quarter. In the second quarter of 2025, Alphabet Inc. (NASDAQ: GOOG) achieved a revenue of $96.4 billion, representing an increase of 14% compared to Q2 2024.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 everyone’s talking about as AI investments continue. 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.