Vulcan Value Partners' Updates on Alphabet (GOOG)

Investment management company Vulcan Value Partners recently released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was a good one for the portfolios. The absolute performance was positive across all the strategies, while the relative performance lagged. In the quarter, the Large Cap Composite returned 4.6% net of fees and expenses, the Small Cap Composite returned 4.1% net, the Focus Composite returned 3.7% net, the Focus Plus composite returned 3.7% and the All-Cap Composite returned 5.5% net. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Vulcan Value Partners 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 -0.25%, and its shares gained 53.01% of their value over the last 52 weeks. On October 15, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $251.71 per share, with a market capitalization of $3.04 trillion.

Vulcan Value Partners stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its third quarter 2025 investor letter:

"There were two material contributors to performance: Medpace Holdings Inc. and Alphabet Inc. (NASDAQ:GOOG). Alphabet delivered strong results during its second fiscal quarter. In early September, Alphabet received a favorable remedies decision in the case brought by the Department of Justice concerning Alphabet’s default distribution agreements with original equipment manufacturers, browser developers, and wireless carriers. The remedies decision from early September and the court’s August 2024 ruling that Alphabet violated Section 2 of the Sherman Act are both still subject to appeal. However, we believe that the remedies decision issued in early September alleviates certain outsized risk to Alphabet’s business model. We continue to monitor the AI disruption risks and the ongoing antitrust cases against the company. We will follow our discipline as we receive more information."

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 potential of Alphabet Inc. (NASDAQ:GOOG) 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:GOOG) and shared the list of stocks to buy according to billionaire Ray Dalio’s Bridgewater Associates. 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.