What Places Alphabet (GOOGL) At An Enviable Position In AI Capabilities?

Bristlemoon Capital, a global equities firm, released its “Bristlemoon Global Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 5.0% in the September quarter, 5.6% for September 2025, net of fees. Since its inception, the fund has produced a cumulative return of 19.3%, net of fees. The fund focuses on compounding the capital at attractive rates over the long term. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Bristlemoon Global Fund highlighted stocks such as Alphabet Inc. (NASDAQ:GOOGL). Alphabet Inc. (NASDAQ:GOOGL) is a leading technology company that provides various products and platforms. The one-month return of Alphabet Inc. (NASDAQ:GOOGL) was -5.98%, and its shares gained 43.41% of their value over the last 52 weeks. On October 10, 2025, Alphabet Inc. (NASDAQ:GOOGL) stock closed at $236.57 per share, with a market capitalization of $2.866 trillion.

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

"Alphabet Inc. (NASDAQ:GOOGL) is another stock that we felt had been undeservedly beaten down by a bearish narrative that largely ignored the fundamentals of the business. We began accumulating GOOGL in June and continued adding to our position in Q3 as we waited for the market narrative to flip on its head. Alphabet needs no introduction, so we will jump straight into why we thought the AI disruption and terminal value fears were overblown.

Google failing to innovate? The notion that Google has lost the ability to innovate is a common refrain that we have heard over the past several years – essentially since the November 2022 ChatGPT moment – and one that we subscribed to ourselves at one stage. The genesis of this complaint is easy to understand: • Despite (or perhaps because of) being a tremendous monetary success, the Google Search experience has been degrading for years as sponsored links, shopping ads, algorithm changes and rampant SEO abuse made it increasingly tedious for users to find answers to their queries. • Google has nine services with over 1 billion users each, yet these are all over one or two decades old, and the company has failed to launch a new service or product with massive adoption in recent years despite its distribution advantages. At least Mark Zuckerberg has the distinction of copying well…” (Click here to read the full text)

Alphabet Inc. (NASDAQ:GOOGL) is in 4th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 219 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOGL) at the end of the second quarter, which was 227 in the previous quarter. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOGL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Alphabet Inc. (NASDAQ:GOOGL) and shared AI stocks on the market’s radar. 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.