Right Tail Capital's Views on Alphabet (GOOG)

Right Tail Capital, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. For 2025, the Right Tail portfolio increased by ~0.34% before fees, compared to a gain of around 17.8% for the S&P 500 and about 11.2% for the S&P 500 Equal Weight Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its fourth-quarter 2025 investor letter, Right Tail Capital 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. On January 6, 2026, Alphabet Inc. (NASDAQ:GOOG) stock closed at $314.55 per share. One-month return of Alphabet Inc. (NASDAQ:GOOG) was -2.01%, and its shares gained 60.99% of their value over the last 52 weeks. Alphabet Inc. (NASDAQ:GOOG) has a market capitalization of $3.797 trillion.

Right Tail Capital stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its fourth quarter 2025 investor letter:

"I have invested in Alphabet Inc. (NASDAQ:GOOG) (parent company of Google) for more than six years, and it has been a significant holding for Right Tail since inception. Throughout that period, I’ve often felt that the market has undervalued the quality and breadth of Alphabet’s business portfolio, even as the stock itself has performed reasonably well.

I first purchased Alphabet in 2018-2019 when concerns emerged that its revenue growth had dipped below 20%. Throughout the years, I continued to hold during moments of uncertainty, including the introduction of ChatGPT. Earlier this year, I added to our position when shares declined to roughly $150 amid concerns around tariffs, skepticism about Alphabet’s AI positioning, and an ongoing DOJ case. I believed the market was underappreciating Alphabet’s ability to compete in AI and the strength of businesses such as Google Cloud, YouTube, and Waymo. Alphabet stock went on to finish the year strongly north of $300 per share. Now, Alphabet is viewed as one of the leaders in the AI race and betting sites like Polymarket believe Alphabet will continue to be in the lead4. The decision to add to our investment was driven by potentially misplaced fears around AI and an open mind to both the positive and negative possibilities. I was not seeking a specific investment in AI but was ready to seize the opportunity that presented itself. This example is representative of how I aim to deploy capital – it’s an investment in a high-quality business amidst a period of heightened uncertainty."

Alphabet Inc. (NASDAQ:GOOG) is in the 7th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 186 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the third quarter which was 178 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 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 best American stocks to buy and hold in 2026. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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