Riverpark Large Growth Fund Views Alphabet (GOOG) as a Core Holding with Compelling Upside

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q1 2025 investor letter. A copy of the letter can be downloaded here. The market faced a challenging start to 2025, with the S&P 500 Index declining 4.27% and the Russell 1000 Growth Index falling 9.97% in the first quarter. Against this backdrop, the fund dropped 7.21%, outperforming its growth benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-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 4.10%, and its shares lost 0.90% of their value over the last 52 weeks. On May 30, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $172.85 per share, with a market capitalization of $2.09 trillion.

RiverPark Large Growth Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q1 2025 investor letter:

“Alphabet Inc. (NASDAQ:GOOG) shares declined in the first quarter despite solid business fundamentals. Investors reacted negatively to the company’s AI product rollout relative to peers, expressing concern about potential market share loss in core search and cloud segments. Nevertheless, Alphabet continues to deliver strong cash flow from its dominant search and YouTube platforms while investing aggressively in its next-generation AI and cloud infrastructure. Trading at a valuation discount to many of its peers, we view Alphabet as a core holding with compelling upside as monetization of its newer initiatives accelerates.”

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:GOOG) is in 7th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 164 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the first quarter which was 174 in the previous quarter. In the first quarter of 2025, Alphabet Inc. (NASDAQ: GOOG) achieved a revenue of $90.2 billion, representing an increase of 12% from Q1 2024. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) 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:GOOG) and shared Artisan Value Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.