Strength in Core Business Lifted Alphabet (GOOG) in Q3

Core Insights - Baron Durable Advantage Fund reported a 5.6% appreciation in Q3 2025, underperforming the S&P 500 Index which increased by 8.1% during the same period [1] - Year-to-date, the fund is up 13.6%, while the S&P 500 Index has gained 14.8% [1] - The U.S. large-cap equity market continues to show strong gains, with a rally that began in early 2023 still persisting [1] Company Highlights: Alphabet Inc. (NASDAQ:GOOG) - Alphabet Inc. experienced a one-month return of 13.63% and a 52-week gain of 59.04%, closing at $285.60 per share with a market capitalization of $3.448 trillion on November 17, 2025 [2] - The company's shares rose 37.4% in Q3 2025, driven by strong performance in its core businesses, Google Cloud, and Other Bets [3] - Google Search and YouTube achieved double-digit revenue growth year-over-year, despite competition from AI platforms like ChatGPT [3] - Google Search paid clicks increased compared to the previous year, and the AI assistant Gemini reached the top spot on Apple's App Store [3] - Cloud revenue growth accelerated by 32% year-over-year, fueled by demand for AI cloud services [3] - The resolution of the Department of Justice's antitrust case regarding Google Search was more favorable than anticipated, positively impacting the stock [3] - Alphabet is positioned to leverage its extensive AI talent and ecosystem, with a full-stack advantage in scaling AI products like the Gemini models [3] - The company's vast user base across multiple products creates a powerful flywheel effect, lowering customer acquisition costs and enhancing developer attraction [3] - Alphabet is uniquely positioned to lead in AI-powered commerce, utilizing platforms like YouTube for real-time object recognition and personalized advertising [3]