Alphabet (GOOG) Reported Strong Results Despite AI Disruption

2 days ago 2

Soumya Eswaran

Mon, December 29, 2025 astatine 9:15 AM CST 3 min read

Artisan Partners, an concern absorption company, released its “Artisan Value Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The equity marketplace rally persisted successful the 3rd 4th arsenic investors ignored tariffs, buoyed by beardown firm earnings, rising AI investment, and prospects of economical enactment from US fiscal argumentation and little involvement rates. Against this backdrop, the fund’s Investor Class ARTLX, Advisor Class APDLX, and Institutional Class APHLX returned 0.83%, 0.91%, and 0.90%, respectively, successful the 3rd 4th compared to a 5.33% instrumentality for the Russell 1000 Value Index. In addition, you tin cheque the apical 5 holdings of the money to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Artisan Value Fund highlighted stocks specified arsenic Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the genitor institution of Google, offers assorted platforms and services operating done Google Services, Google Cloud, and Other Bets segments. The one-month instrumentality for Alphabet Inc. (NASDAQ:GOOG) was -0.05%, and its shares gained 63.45% implicit the past 52 weeks. On December 26, 2025, Alphabet Inc. (NASDAQ:GOOG) banal closed astatine $314.96 per share, with a marketplace capitalization of $3.79 trillion.

Artisan Value Fund stated the pursuing regarding Alphabet Inc. (NASDAQ:GOOG) successful its 3rd 4th 2025 capitalist letter:

"Our apical contributor successful Q3 was Alphabet Inc. (NASDAQ:GOOG), a long-time holding. Alphabet delivered beardown quarterly results crossed each segments, allaying concerns astir the risks of AI connected its hunt business. Total gross grew 14% year-over-year, led by hunt and unreality arsenic monetization of AI solutions accelerated. Alphabet has seen beardown uptake of its AI infrastructure and generative AI solutions, which are present integrated crossed the Google Cloud Platform. Cloud gross grew 32% year-over-year, driven by acceleration successful ample deals (e.g., the numberof$1billion deals successful 1H 2025 equaled each of FY24). As perspective, Google is present monetizing 980 monthly tokens, which has doubled since May, and the fig of users of its Gemini chatbot has grownto450million from 350 cardinal successful March. Tokens are units of information processed by AI. YouTube besides continued to turn powerfully and remains the No. 1 streaming level successful the US based connected ticker time. Since its April lows, the banal is up much than 70% and present trades astir 24Xonforward-year net estimates. Though nary longer inexpensive similar it was successful April, we judge its valuation, which is successful enactment with that of the S&P 500® Index, is inactive charismatic considering Alphabet’s beardown fundamentals. However, fixed the stock’s speedy run-up, which caused the presumption size to grow, we did instrumentality immoderate profits to bring it backmost to a mean presumption size (i.e., 2%–3%)."