Strong Growth in Google Services Lifted Alphabet (GOOG)

2 weeks ago 12

Soumya Eswaran

Mon, January 19, 2026 astatine 8:14 AM CST 3 min read

Wedgewood Partners, an concern absorption company, released its fourth-quarter 2025 capitalist letter. The steadfast anticipates stronger marketplace volatility successful the coming years and has moderated its enthusiasm. A transcript of the missive tin beryllium downloaded here. The Wedgewood Composite returned -1.8% (net) successful the 4th fourth compared to the S&P 500’s 2.7%, the Russell 1000 Growth Index’s 1.1%, and the Russell 1000 Value Index’s 3.8% returns. YTD, the Composite gained 4.3% compared to 17.9%, 18.6%, and 15.9% returns for the indexes, respectively. Wedgewood Partners’ absorption connected high-quality stocks has historically worked since 1992, but not successful 2025. The missive highlighted mediocre banal selection, the portfolio’s beardown past performers owed for valuation correction, and being structurally underweight successful AI stocks drove the underperformance. The missive noted that successful 2026, crowded AI investments and stretched valuations make unit connected prudent concern decisions. In addition, you tin cheque the Fund’s apical 5 holdings to find its champion picks for 2025.

In its fourth-quarter 2025 capitalist letter, Wedgewood Partners highlighted Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG) stood retired arsenic the starring performer of the strategy successful the quarter. Alphabet Inc. (NASDAQ:GOOG), the genitor institution of Google, offers assorted platforms and services operating done Google Services, Google Cloud, and Other Bets segments. On January 16, 2026, Alphabet Inc. (NASDAQ:GOOG) banal closed astatine $330.34 per share. One-month instrumentality of Alphabet Inc. (NASDAQ:GOOG) was 7.04%, and its shares gained 67.22% of their worth implicit the past 52 weeks. Alphabet Inc. (NASDAQ:GOOG) has a marketplace capitalization of $3.988 trillion.

Wedgewood Partners stated the pursuing regarding Alphabet Inc. (NASDAQ:GOOG) successful its 4th fourth 2025 capitalist letter:

"Alphabet Inc. (NASDAQ:GOOG) continued to marque important contributions to show during the quarter. The Company's Google subsidiary reported that hunt revenues accelerated to +15% maturation compared to a twelvemonth ago. Google idiosyncratic query maturation related to AI Overviews, on with automated advertisement originative services, helped thrust this gross growth. The Google Cloud conception gross and backlog maturation besides accelerated, driven by AI workloads. Google Cloud processes 1.3 quadrillion - that is: 1,300 x 1 trillion - AI tokens per month, much than treble from conscionable a fewer quarters agone and galore multiples much than immoderate of its largest unreality competitors. Alphabet's agelong past of processing proprietary IT hardware and bundle volition proceed to assistance compound its profitability enactment during the AI era."