Alphabet’s (GOOG) AI Initiatives are Driving Strong Growth

Core Insights - Wedgewood Partners reported a net return of 5.9% for its Composite in Q3 2025, underperforming compared to the S&P's 8.1%, Russell 1000 Growth Index's 10.5%, and Russell 1000 Value Index's 5.3% returns [1] - AI stocks continue to dominate discussions on Wall Street during the third quarter of 2025 [1] Company Highlights - Alphabet Inc. (NASDAQ:GOOG) was highlighted as a top contributor to Wedgewood's portfolio performance, driven by strong growth in its advertising and cloud computing businesses due to AI initiatives [3] - Alphabet's stock experienced a one-month return of -0.40% but gained 50.67% over the last 52 weeks, closing at $251.34 per share with a market capitalization of $3.07 billion on October 21, 2025 [2] - The company's core Google search business saw a 12% increase in revenues, aided by the new "AI Overviews" feature, which reaches over 2 billion users [3]