Alphabet (GOOG) Surges Over 20% Revenue Growth, Cloud Strength

Alphabet (GOOG) Surges Over 20% Revenue Growth, Cloud Strength Soumya Eswaran Wed, September 9, 2026 at 4:26 PM GMT+2 3 min read GOOG ^GSPC GOOG Alphyn Capital Management, an investment management firm, released its second-quarter 2026 investor letter. The letter can be downloaded here . The fund's Master Account returned 0.

6% net in the quarter compared to 15. 2% for the S&P500. As of June 30, 2026, the top ten positions comprised approximately 72% of the portfolio, and the portfolio held approximately 9% in cash and short-term treasuries.

The portfolio experienced minimal gains in the quarter, despite a strong index performance, leading to disappointment in longer-term results. The author acknowledged prior management flaws, notably holding onto positions after their initial rationale changed. As a correction, every position now has a clear thesis, expected return, and exit strategy based on changes in metrics.

The letter concluded that while early-stage analysis can be misleading, profitability consistency can identify successful long-term investments more effectively. Please review the Fund's top five holdings to gain insights into their key selections for 2026. In its second-quarter 2026 investor letter, Alphyn Capital Management highlighted Alphabet Inc.

(NASDAQ: GOOG ) as a leading performance contributor. Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services, including online search and advertising, cloud solutions, and artificial intelligence.

On September 08, 2026, Alphabet Inc. (NASDAQ:GOOG) closed at $335. 38 per share, reflecting a market capitalization of $4.

12 trillion. Alphabet Inc. (NASDAQ:GOOG) posted a one-month return of -2.

04%, while its shares gained 40. 00% over the past 52 weeks. Alphyn Capital Management stated the following regarding Alphabet Inc.

(NASDAQ:GOOG) in its Q2 2026 investor letter: "Alphabet Inc. (NASDAQ:GOOG) was the largest contributor this quarter. Operating results were strong: first-quarter revenue grew more than 20 percent, Google Cloud grew over 60 percent with its backlog nearly doubling in the quarter, and the vertically integrated AI stack continued to show up as a tailwind to the core rather than a threat.

This stack spans proprietary infrastructure, leading models, and scaled distribution through Search and Android. The most notable development came in June, when Alphabet raised roughly $85 billion of fresh equity and lifted its 2026 capital expenditure guidance toward $180 to $190 billion. The size and suddenness of the raise pressured the shares, though Berkshire Hathaway's $10 billion participation read as a vote of confidence in the long-term AI economics.

I trimmed a portion of the position into strength during the quarter, but it remains a core holding. The central question I am now watching is the return on this extraordinary level of reinvestment. " Story Continues Alphabet Inc.

(NASDAQ:GOOG) ranks 7th on our list of  40 Most Popular Stocks Among Hedge Funds . As per our database, 195 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the second quarter, which was 201 in the previous quarter.

While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the  best short-term AI stock .

In another article , we discussed Alphabet Inc. (NASDAQ:GOOG) and shared Hotchkis & Wiley Global Value Fund's insights on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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