Group 1 - The net asset value of FPA Source Capital increased by 4.59% in Q3 2025 and 13.76% over the trailing 12 months [1] - The top five equity performers contributed 4.82% to the fund's return, while the bottom five detractors reduced it by 2.03% [1] Group 2 - Alphabet Inc. (NASDAQ:GOOG) stock experienced a one-month return of 10.77% and an annual gain of 81.75%, closing at $322.09 per share with a market capitalization of $3.888 trillion on December 03, 2025 [2] - Despite investor concerns regarding competitive threats and antitrust scrutiny, Alphabet's stock price has increased five-fold since initial purchases by the fund's current management team [3] - Alphabet's stock has risen 28% year-to-date and 57% since the end of Q1 2025, following a favorable legal ruling regarding its Chrome and Android divisions [3] - YouTube is noted as the most-watched media outlet globally, with over one trillion hours of video viewed, indicating potential for further monetization [3] - The fund maintains a position in Alphabet, recognizing the value of its self-driving technology and the growth potential of its cloud services [3]

This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Dive Brief: Google Play store consumers may finally be getting a payout from a $700 million settlement the tech giant agreed to pay two years ago. It resolved antitrust complaints filed in 2021 by consumers and 53 states and U.S. territories. Plaintiffs are notifying potential claimants this month about their potential recovery from the 2023 settlement covering ...

Core Insights - Warren Buffett is preparing Berkshire Hathaway for long-term success despite his impending retirement as CEO, with a planned transition to successor Greg Abel in 2025 [1][3] Investment Highlights - Berkshire Hathaway's Class A shares have increased by approximately 6,118,000% since Buffett took over, significantly outperforming the S&P 500's gain of less than 46,000% during the same period [2] - Buffett has made substantial investments in five key stocks for 2026, indicating confidence in their future performance [5] Alphabet (GOOGL) - Berkshire purchased 17,846,142 shares of Alphabet during the September-ended quarter, marking a significant investment in the company [6] - Alphabet holds a dominant position in the global internet search market, with a share of 89% to 93%, and is also a major player in cloud services, with Google Cloud's sales growing over 30% year-over-year [8][9] Sirius XM Holdings (SIRI) - Berkshire has acquired 7,338,544 shares of Sirius XM, holding over 37% of the company's outstanding shares [10] - Sirius XM operates as a legal monopoly in satellite radio, with 76% of its net sales coming from subscriptions, providing stability during economic downturns [11][12] Domino's Pizza (DPZ) - Berkshire has consistently purchased Domino's stock, acquiring 599,945 additional shares in 2025 [15] - Domino's has successfully rebuilt customer trust and is leveraging technology to enhance its operations, contributing to steady growth [16][17] UnitedHealth Group (UNH) - Berkshire purchased 5,039,564 shares of UnitedHealth Group, capitalizing on a price dislocation caused by management's warnings of higher costs [20][21] - The company's health insurance operations are predictable and profitable, with a focus on mitigating costs in its Medicare Advantage segment [22] Pool Corp. (POOL) - Berkshire has added 2,860,196 shares of Pool Corp over four consecutive quarters, benefiting from the cyclical nature of the pool and spa industry [26][27] - Pool Corp generates recurring revenue from maintenance and accessories, providing cash flow stability, and has a strong capital-return program [28][29]

Core Viewpoint - Alphabet has transformed from a market underperformer to a leading player, now valued at nearly $4 trillion, demonstrating significant growth potential and market recognition in the AI sector [1][2][18] Group 1: Stock Performance - Alphabet's stock has increased by 67% year to date, more than doubling from its 52-week low, and has surpassed Microsoft to become the third-most valuable company globally [2][18] - The company was previously undervalued, trading at a discount to the S&P 500, despite strong fundamentals such as substantial free cash flow and high-margin growth [5][11] Group 2: Market Perception and Strategy - Wall Street initially mispriced Alphabet, viewing it as an AI loser, but the company has successfully integrated AI into its services, particularly Google Search, through its Gemini model [6][10] - The integration of AI features has led to continued growth in Google Search, countering fears of losing market share to large language models [11][14] Group 3: Business Diversification and Revenue Streams - Alphabet's diversified business model includes Google Search, Google Cloud, YouTube, and other services, with Google Search still accounting for over half of its revenue [8][12] - The company is exploring new revenue streams, such as selling its Tensor Processing Unit (TPU) chips, which are recognized as a leading solution for AI model training [13][14] Group 4: Future Outlook - Alphabet's valuation remains reasonable at 30 times forward earnings, indicating potential for further growth in 2026 [18] - The recent positive market response is attributed to advancements in AI and strategic partnerships, positioning Alphabet favorably against competitors [16][19]

Core Insights - Cloudflare experienced a significant outage affecting 28% of global websites due to internal errors rather than external attacks, marking the second incident in two weeks [2][3] Group 1: Incident Details - The outage on December 5 was caused by Cloudflare's attempts to address a serious vulnerability in React Server Components, leading to HTTP 500 errors [2] - The issue stemmed from a combination of expanding the WAF buffer and disabling an internal testing tool, which inadvertently triggered a long-dormant Lua bug in the old FL1 proxy [2][3] - The affected clients were those using the old proxy with managed rule sets, which accounted for a significant portion of traffic [3] Group 2: Systemic Issues - The incident highlighted the risks associated with legacy code, as the Lua code, established in 2009, could not be fully replaced, allowing bugs to resurface years later [3] - Cloudflare's new FL2 version, rewritten in Rust, does not have these issues, indicating a need for modernization [3] - The company has committed to freezing all network changes and prioritizing improvements in its release processes and emergency response capabilities [3] Group 3: Broader Implications - The repeated incidents underscore a critical challenge in internet infrastructure: preventing updates from causing system failures, which is becoming more urgent than merely defending against attacks [3]

Industry Application - Starlink is enhancing commercial coffee farming operations in Brazil [1] - Starlink's high-speed internet enables Fazenda Luciana in São Paulo to reduce downtime in repairs, enhance remote security, and perform efficient harvests [1] Technological Impact - Stable, high-speed internet improves operational efficiency in agriculture [1]

Core Points - A U.S. judge finalized the consequences for Google regarding its search monopoly ruling, adding new details to the remedies [1][2] - Google was previously found to hold an illegal monopoly in internet search, with minimal consequences from the Department of Justice's proposed remedies [1][2] - Alphabet shares increased by 8% in extended trading, indicating investor relief over the perceived minimal impact of the ruling [2] Summary by Sections - **Antitrust Case Background** - The antitrust trial commenced in September 2023, with a ruling made by U.S. District Judge Amit Mehta [3] - The judge ruled against the most severe consequences proposed, such as the forced sale of Google's Chrome browser [2] - **Remedies and Restrictions** - Google is allowed to make payments to preload products but cannot have exclusive contracts that condition payments or licensing [3] - The company must loosen its hold on search data and make certain search index data and user interaction data available, excluding ads data [3] - **Market Reaction** - Investors largely viewed the ruling as non-impactful, although some noted it could still have negative implications for Google [2]

Core Viewpoint - Meta Platforms is facing significant challenges as it invests heavily in artificial intelligence (AI), with stock prices declining nearly 20% since summer due to concerns over capital expenditures [1][11]. Group 1: Financial Performance - Meta's advertising revenue constituted $138 billion of its total $141 billion revenue in the first nine months of 2025, reflecting a 22% year-over-year growth [4]. - The company generated nearly $38 billion in net income during the same period, with analysts projecting a revenue growth of 21% for this year, decreasing to 18% in 2026 [5]. - Free cash flow for the first three quarters of 2025 was approximately $30 billion, down from $39 billion in the same period the previous year, indicating the financial impact of heavy capex spending [8][9]. Group 2: Capital Expenditures and AI Strategy - Meta plans to spend between $70 billion and $72 billion on capital expenditures in 2025 to enhance its AI capabilities, with expectations that spending will continue into 2026 and beyond [3]. - The company is leveraging its extensive personal data to develop competitive AI models, which is crucial for its growth strategy as it seeks to diversify beyond advertising [3][11]. - Meta's AI competitor, Alphabet, has pledged to spend $91 billion to $93 billion over the same period, highlighting the competitive landscape in AI investments [3]. Group 3: Market Position and Future Outlook - Despite being a part of the "Magnificent Seven," Meta's stock is currently the cheapest among them, with a price-to-earnings (P/E) ratio of 28 [6]. - The company’s future growth is uncertain as it relies heavily on advertising, which still accounts for 98% of its revenue, necessitating a successful AI transformation to maintain double-digit growth [11][12]. - Investors are left to wait for the outcomes of Meta's AI investments, with the potential for significant transformation if successful [12].

Core Insights - Alphabet Inc./Google (GOOGL) has experienced a significant 67% year-to-date rally in 2025, indicating strong market momentum [1] - The stock has gained 35% since a September Strong Buy call, reflecting positive investor sentiment and confidence in the company's performance [1] Company Analysis - The company is positioned well in the technology sector, benefiting from a robust IT background and a deep understanding of market dynamics [1] - The analysis emphasizes the importance of fundamental analysis in making informed investment decisions, showcasing the company's commitment to transparency and accessibility for investors [1] Market Perspective - The article invites both seasoned and novice investors to engage in collaborative exploration of market opportunities, highlighting the potential for shared financial success [1] - The focus on technology stocks is underscored by the author's IT background, which provides a unique perspective on navigating complexities within this sector [1]

Core Insights - Alphabet Inc./Google (GOOGL) has experienced a significant 67% year-to-date rally in 2025, indicating strong market momentum [1] - The stock has gained 35% since a September Strong Buy call, reflecting positive investor sentiment and confidence in the company's performance [1] Company Analysis - The company is positioned well in the technology sector, benefiting from a robust understanding of risk and reward dynamics [1] - The analyst emphasizes a commitment to clear and accessible communication, aiming to engage a broad range of investors [1] Market Perspective - The article highlights the importance of fundamental analysis in navigating the complexities of technology stocks, suggesting a strategic approach to investment [1] - There is an invitation for both seasoned and new investors to explore market opportunities collaboratively, indicating a focus on shared financial success [1]