Increased Momentum in the Core Businesses Lifted Alphabet (GOOG) in Q3

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q3 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets recorded strong gains in the third quarter, with the S&P 500 Total Return Index rising 8.12% and the Russell 1000 Growth Index returning 10.51%. The fund also surged in the quarter and returned 4.73%. Market leadership was narrow in the quarter, with a few mega-cap tech and consumer companies thriving on strong AI innovation. Information Technology, Consumer Discretionary, and Communication Services led sector performance, while Energy and Utilities lagged. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, RiverPark Large Growth 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 13.63%, and its shares gained 59.04% of their value over the last 52 weeks. On November 17, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $285.60 per share, with a market capitalization of $3.448 trillion.

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

“Alphabet Inc. (NASDAQ:GOOG): GOOG was our top contributor in the quarter, benefiting from accelerating momentum in its core Search and YouTube franchises and renewed investor enthusiasm around its AI initiatives. Revenue for the period approached $100 billion, driven by double-digit growth in both advertising and cloud services. The company’s ability to integrate generative-AI tools into Search, YouTube, and Cloud helped improve user engagement and monetization, while cost discipline supported expanding margins. The stock also gained from easing regulatory concerns and a favorable rotation into high-quality, cash-generative technology platforms.

We continue to view Alphabet as among the best-positioned secular growth franchises in the market. Its dominant position in global digital advertising, accelerating contribution from Cloud, and growing optionality in areas such as Waymo and DeepMind provide multiple long-term growth drivers.”

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 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 discussed. 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.