What Makes Alphabet (GOOG) a Strong Investment?

2 hours ago 1

Soumya Eswaran

Wed, February 18, 2026 astatine 8:10 AM CST 3 min read

The London Company, an concern absorption company, released “The London Company Large Cap Strategy” fourth-quarter 2025 capitalist letter. In Q4 2025, US equities ended the 3rd consecutive 4th of higher returns, with the Russell 3000 Index rising 2.4%. A transcript of the missive tin beryllium downloaded here. The marketplace highlighted however investors balanced the optimism connected net maturation and concerns regarding AI returns and cooling macroeconomic factors. Against this backdrop The London Company Large Cap portfolio returned 0.4% (0.2% net) compared to a 2.4% summation successful the Russell 1000 Index. Volatility factors and concentrated marketplace enactment were notable headwinds to the Strategy’s show successful the quarter. Heading into 2026, the economical and argumentation backdrop presents a blend of assurance and doubt. Against this backdrop, the portfolio remains unchangeable and believes it tin assistance investors successful semipermanent wealthiness instauration portion managing downside risk. In addition, delight cheque the Strategy’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, The London Company Large Cap Strategy highlighted Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the genitor institution of Google, offers assorted platforms and services, including online hunt and advertising, unreality solutions, and artificial intelligence, and is simply a important contributor to the fund’s show successful the quarter. On February 17, 2026, Alphabet Inc. (NASDAQ:GOOG) banal closed astatine $302.82 per stock with a marketplace capitalization of $3.663 trillion. One-month instrumentality of Alphabet Inc. (NASDAQ:GOOG) was -7.78%, and its shares gained 61.82% of their worth implicit the past 52 weeks.

The London Company Large Cap Strategy stated the pursuing regarding Alphabet Inc. (NASDAQ:GOOG) successful its 4th fourth 2025 capitalist letter:

"Alphabet Inc. (NASDAQ:GOOG) – GOOG was a apical performer this 4th pursuing beardown halfway concern execution and accelerating adoption of its AI offerings. Growth was wide based crossed Search, YouTube, and Cloud, with AI enhancing hunt inferior and monetization portion Cloud margins reached caller highs. Management continues to equilibrium disciplined outgo controls with accrued AI investment, reinforcing assurance successful semipermanent returns. We stay attracted to its monolithic ecosystem scale, dependable superior allocation, and cleanable equilibrium sheet."

Alphabet Inc. (NASDAQ:GOOG) is successful the 7th presumption connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 186 hedge money portfolios held Alphabet Inc. (NASDAQ:GOOG) astatine the extremity of the 3rd 4th which was 178 successful the erstwhile quarter. In 2025, Alphabet Inc. (NASDAQ: GOOG) achieved its first-ever $400 cardinal yearly revenue. While we admit the imaginable of Alphabet Inc. (NASDAQ:GOOG) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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