Group 1 - SGA's U.S. Large Cap Growth Strategy reported a portfolio return of -1.3% (Gross) and -1.4% (Net) in Q3, underperforming the Russell 1000 Growth Index which returned 10.5% and the S&P 500 Index which returned 8.1% [1] - The investment objective of SGA is to focus on high-quality growth businesses expected to achieve consistent mid-teens earnings growth, stable revenue, and cash flow [1] - In Q3, lower-quality stocks and cyclical industries outperformed, negatively impacting SGA's investment style [1] Group 2 - Alphabet Inc. (NASDAQ:GOOG) was highlighted as a key stock in SGA's third-quarter investor letter, with a one-month return of -1.44% and a 52-week gain of 64.61% [2] - As of December 31, 2025, Alphabet's stock closed at $313.80 per share, with a market capitalization of $3.78 trillion [2] Group 3 - Alphabet Inc. contributed positively during the quarter, benefiting from a favorable outcome in a key antitrust case, which allowed the company to retain its core assets and business model [3] - The company reported strong Q2 results with 13% constant currency revenue growth, increased normalized margins, and accelerated paid click growth [3] - Notable growth in cloud backlog increased from 27% to 37%, with the number of cloud deals over $250 million doubling year-over-year [3] - Alphabet's leadership in AI, search, and cloud is translating into financial results, prompting management to increase the CapEx budget for further innovation [3] - Despite regulatory risks, Alphabet's diversified revenue streams and strategic investments position it well for continued growth, making it a compelling long-term investment [3]

Key Points This business has always been a leader in the internet age, but it’s now a thriving AI enterprise. Stock returns will benefit from a reasonable starting valuation and double-digit earnings growth. 10 stocks we like better than Alphabet › It's been just over three years since OpenAI released ChatGPT. The rapid adoption of that chatbot kicked off a massive wave of artificial intelligence (AI) activity. Businesses are sparing no expense to innovative in the space and build out the necessary ...

Core Insights - Google is focusing on its AI strategy, particularly through the Gemini app, to compete with rivals like OpenAI, which has significantly influenced consumer behavior towards AI-powered applications [2][3][4] - Josh Woodward, who has been with Google since 2009, is leading the Gemini app and is recognized for his ability to navigate challenges and execute quickly within the company [4][12] - The Gemini app has seen substantial growth, with monthly active users increasing from 350 million in March to 650 million in October 2025, and it has surpassed OpenAI's ChatGPT in popularity on Apple's App Store [11] Company Strategy - Google is investing heavily in AI infrastructure, with capital expenditures projected to reach between $91 billion and $93 billion for the year, up from a previous forecast of $85 billion [10] - The launch of the Nano Banana feature within the Gemini app has been a significant success, leading to infrastructure overload due to its popularity [8][9] - The introduction of Gemini 3 has generated excitement in the tech sector, indicating a strong commitment to innovation and product development [12] Competitive Landscape - Alphabet's stock has rebounded significantly, up 62% in 2025, outperforming major competitors like Meta, which is up 13% [11] - The competitive pressure from AI rivals like OpenAI and Anthropic is prompting Google to balance rapid development with ethical considerations in AI deployment [13][16] User Engagement - Woodward's approach includes direct engagement with users through platforms like X and Reddit, which helps in addressing user feedback effectively [34] - The company has implemented systems like "block" and "Papercuts" to streamline processes and resolve minor issues that hinder product development [31][33] Future Outlook - Expectations are high for Google to continue delivering innovative AI features in 2026, with CEO Sundar Pichai noting the impressive momentum in product development [37][38]

AI-Powered Shopping Enhancements - Google Shopping introduces AI Mode in Search, providing intelligently organized responses with rich visuals like shoppable images [1] - Gemini app integrates shopping-related questions, offering helpful ideas, product listings, prices, and purchase locations [2] - Google can call stores on behalf of users to check stock, prices, and promotions [2][3] Automated Assistance & Price Tracking - Google's AI checks stock, prices, and promos, then sends users an email or text with the answers, along with an inventory from nearby stores [3] - Google offers an agentic checkout feature to track prices and automatically purchase items within a specified budget using Google Pay [4]

Product Launch - Google launches Gemini 3 Flash [1] - Gemini 3 Flash becomes the default model in the Gemini app [1]

Core Insights - Alphabet's stock has surged 63% in 2025, reaching a market cap of $3.7 trillion, indicating strong investor confidence and positive momentum [1][3] - The current forward price-to-earnings ratio of 28 is considered reasonable, supported by Alphabet's economic moat, innovation history, and substantial free cash flow [3] - The stock has outperformed the S&P 500 over the past five years and is expected to continue this trend through 2030, driven by new revenue streams such as advertising on the Gemini app [6] Financial Performance - Alphabet generated $74 billion in ad revenue in the third quarter, a figure expected to grow and enhance profitability [7] - The current stock price is $308.22, with a day's range between $304.88 and $311.42 [4] - The stock has a gross margin of 59.18% and a dividend yield of 0.27% [5] Market Position - Alphabet's shares have a 52-week range of $140.53 to $328.83, reflecting significant price movement and investor interest [5] - The company has a trading volume of 29 million, with an average volume of 37 million, indicating active trading [5]

Core Viewpoint - Alphabet is highlighted as a promising growth stock within the "Magnificent Seven," which significantly contributes to the S&P 500's long-term gains, representing 35% of the index [1] Financial Performance - Alphabet has a market capitalization of $3.7 trillion and reported a net profit of $35 billion in Q3, reflecting a 33% year-over-year increase [6][7] - The company has $98.5 billion in cash, cash equivalents, and marketable securities, providing a strong financial position to invest in new ventures [7] Business Segments - Alphabet's revenue reached $100 billion for the first time, with Google Cloud revenue increasing by 34% year-over-year, contributing approximately 15% to total revenue [9] - The Gemini app, part of Alphabet's AI initiatives, has 650 million monthly active users, showcasing the company's growth in AI [10] Diversification and Growth - Unlike other "Magnificent Seven" stocks, Alphabet is diversified across multiple high-growth businesses, including search, cloud, and subscriptions, all experiencing double-digit growth [8][11] - Alphabet's key businesses are gaining market share, and the integration of AI is expected to further accelerate growth rates and create new high-growth segments [14]

Core Insights - The S&P 500 bull market, which turned three years old in October 2025, has a higher likelihood of extending to an average of eight years, supported by strong earnings growth in tech companies and expected index levels of 7,500 driven by AI infrastructure spending [2][3] Group 1: Advanced Micro Devices (AMD) - AMD has achieved an impressive 81% gain in 2025, significantly outperforming the PHLX Semiconductor Sector index's 46% gain, driven by its strong position in the AI data center market [5] - The company anticipates an acceleration in data center revenue growth, projecting an annual growth rate exceeding 60% over the next three to five years, up from 52% in the past five years [7] - AMD's client processor revenue rose by 46% year-over-year in Q3 to a record $2.8 billion, benefiting from AI PC proliferation and market share gains against Intel [8] - Analysts expect AMD's earnings growth rate to triple to over 62% in 2026, with a potential stock price increase of 34% if it aligns with industry averages [9][10] Group 2: Alphabet - Alphabet has recorded a 67% gain in 2025, supported by its investments in AI, with revenue increasing by 16% year-over-year to $102.3 billion and earnings growing by 35% [11][13] - The Google Cloud business reported a 34% year-over-year revenue increase, with expectations for accelerated growth as the cloud AI market is projected to quadruple in size over the next five years [15] - Alphabet's cloud business has a $155 billion backlog, which increased by 46% sequentially, indicating strong future growth potential in cloud-based AI services [17] - The company's strategy to become a full-stack AI provider is expected to yield robust long-term growth, despite short-term impacts on revenue from heavy AI infrastructure investments [18][20]

We just released Gemini 3, our most intelligent model. Here's what you can do with it. It's state-of-the-art for reasoning and multimodal understanding.So, it's much better at figuring out the context and intent behind your request. Give it a video of your pickle ball match, and Gemini will provide expert level analysis, helping improve your game. Or break down a dense research paper by asking it to code you an interactive guide that visualizes the concepts.Building on Gemini 3, Nano Banana Pro adds an impr ...

Core Insights - Alphabet achieved a significant milestone by surpassing $100 billion in quarterly revenue for the first time, driven by AI technologies across its Search, YouTube, and Google Cloud businesses [2][7] - The company is experiencing robust growth in its AI capabilities, with a notable increase in monthly active users and queries on its Gemini app, alongside substantial processing of AI tokens [1][10] Financial Performance - In Q3 of fiscal 2025, Alphabet's revenues rose 16% year-over-year to $102.3 billion, marking a historic quarter for the company [2][7] - Google Cloud revenues increased by 34% year-over-year to $15.2 billion, with an operating margin improvement of 6.6 percentage points to 23.7% [11] AI Strategy and Infrastructure - Alphabet's AI infrastructure utilizes a combination of Nvidia's GPUs and its own TPUs, with the latest Ironwood TPU set to launch soon [8][10] - The company is witnessing increased enterprise demand for its AI models, with significant discussions ongoing with Apple regarding licensing its AI model for Siri [9][10] Market Position and Growth Potential - Alphabet's diversified revenue base includes 13 product lines with an annual run rate exceeding $1 billion, positioning it well for future growth [7][16] - The company is expected to see multiple expansion in 2026, driven by its strong Search business and rapidly scaling Google Cloud operations [18] Valuation - Alphabet currently trades at a P/E ratio of 29.6, which is considered conservative compared to Nvidia's 44.3, reflecting its scale and diversified revenue [16] - Management has projected capital expenditures of $91 billion to $93 billion in 2025, indicating a strong commitment to AI and infrastructure investments [17]