Alphabet (GOOG) in Wedgewood Partners Q1 2025

AI Integration and Core Search Growth

May 09, 2025

Summary

Core search business grew by +13%.
Over +20% growth in segment income for Google Services.
GenAI responses added to search results, monetizing similarly to traditional results.
Continued investment in AI hardware and software R&D.

Alphabet (GOOG, Financial) was noted as a detractor in Wedgewood Partners' Q1 2025 portfolio, despite strong growth in its core search business and Google Services. The integration of generative AI into search results is a significant development, with potential for substantial monetization. Alphabet's long-term investments in AI and infrastructure are expected to drive future growth.

"Alphabet also detracted from performance during the quarter, despite of +13% growth in its core search business and over +20% growth in segment income for Google Services." — Wedgewood Partners, Q1 2025 Fund Letter

Read full letter at gurufocus Wedgewood Partners 2025 Q1 page.

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