Alphabet (GOOG) Contributed 4.7% to Giverny Capital Asset Management's 2025 Growth

Giverny Capital Asset Management, LLC, an investment management company, recently published its fourth-quarter 2025 investor letter. A copy of the same can be downloaded here. The Portfolio returned 0.01% compared to 2.66% for the S&P 500. YTD, the fund returned 12.58% compared to 17.88% for the Index. The firm faced a challenging fourth quarter and calendar year, despite solid appreciation. The outperformance of a few large technology companies has negatively impacted performance, given the portfolio's underweight in large tech and overweight in smaller niche leaders. While portfolio companies are excelling in earnings growth and capital returns, the market is fixated on AI investments, leaving the actual benefits unclear. Additionally, you can review the Portfolio’s top 5 holdings to see its best picks for 2025.

In its fourth-quarter 2025 investor letter, Giverny Capital Asset Management highlighted Alphabet Inc. (NASDAQ:GOOG) as one of its leading contributors. 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 29, 2026, Alphabet Inc. (NASDAQ:GOOG) stock closed at $338.66 per share with a market capitalization of $4.088 trillion. One-month return of Alphabet Inc. (NASDAQ:GOOG) was 7.40%, and its shares gained 64.72% of their value over the last 52 weeks.

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

"Alphabet Inc. (NASDAQ:GOOG) obviously benefits from AI enthusiasm, but its earnings also rose about 30% in 2025 and have compounded in the high teens since 2021. It has a portfolio of businesses that are performing well: Internet search and its Gemini AI model, YouTube, Waymo, Google Cloud and others. This is an exceptional collection of assets."

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 stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q4 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.