What Makes Alphabet (GOOG) a Compelling Long-Term Bet?

3 hours ago 1

Soumya Eswaran

Fri, January 2, 2026 astatine 6:41 AM CST 3 min read

Sustainable Growth Advisers (SGA), an concern absorption company, released its third-quarter capitalist missive for its “U.S. Large Cap Growth Strategy.” A transcript of the missive tin beryllium downloaded here. The portfolio returned -1.3% (Gross) and -1.4% (Net) successful the 3rd quarter, compared to a 10.5% instrumentality for the Russell 1000 Growth Index and an 8.1% instrumentality for the S&P 500 Index. SGA’s concern nonsubjective is to put successful high-quality maturation businesses expected to execute accordant mid-teens net growth, accompanied by unchangeable gross and currency flow. However, successful Q3, the marketplace enactment was adverse for SGA’s concern benignant arsenic lower-quality stocks and cyclical industries outperformed. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, the SGA U.S. Large Cap Growth Strategy 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 -1.44%, and its shares gained 64.61% implicit the past 52 weeks. On December 31, 2025, Alphabet Inc. (NASDAQ:GOOG) banal closed astatine $313.80 per share, with a marketplace capitalization of $3.78 trillion.

SGA U.S. Large Cap Growth Strategy stated the pursuing regarding Alphabet Inc. (NASDAQ:GOOG) successful its 3rd 4th 2025 capitalist letter:

"Alphabet Inc. (NASDAQ:GOOG) was a contributor during the quarter. In September, Alphabet secured a favorable result successful its cardinal antitrust case, removing a large overhang for the stock, with remedies that were little terrible than feared and allowed Alphabet to clasp its halfway assets and concern model. The institution besides reported beardown Q2 results earlier successful the quarter, with 13% changeless currency gross growth, normalized margins increasing, and accelerated paid click growth. Cloud backlog maturation was peculiarly notable, rising from 27% to 37%, and the fig of unreality deals implicit $250 cardinal doubled year-over-year. The Gemini app besides reached fig 1 successful the U.S. App Store, surpassing competitors including ChatGPT. Alphabet’s enactment successful AI, search, and unreality is translating into tangible fiscal results, with absorption expanding the CapEx fund to enactment further innovation. While regulatory risks remain, the company’s diversified gross streams, borderline discipline, and strategical investments successful AI and unreality presumption it good for continued growth. We judge Alphabet remains a compelling semipermanent concern owed to its resilient concern model, innovation leadership, and quality to monetize secular trends successful integer information, advertising, and unreality computing. We raised the presumption people to an mean weight."