Investment advisor Mairs & Power released the “Mairs & Power and Power Palanced Fund” of the first quarter 2025 investor letter. A copy of the letter can be downloaded here. Stocks reached record highs in February. However, tariff uncertainty in March caused stocks to fall, while fixed income benefits from perceived security. The fund ended up a quarter of up 0.04%. The fund outperformed the benchmark composite index (60% S&P 500 S&P 500 Total Income Index and 40% Bloomberg U.S. Government/Credit Bond Index), down 1.48%, and Morningstar Medium Allocation Peer Group fell 0.34%. Also, check the fund’s top five holdings to see its best options for 2025.

Mairs & Power Calanced Fund highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG) in its first-quarter 2025 investor letter. Google's parent company Alphabet Inc. (NASDAQ:GOOG) provides a variety of platforms and services running through Google Services, Google Cloud and other BETS segments. Alphabet Inc. (NASDAQ:GOOG) has a one-month return of 2.57%, and its stock has lost 3.48% of its value in the past 52 weeks. On May 6, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $165.20 per share, with a market value of $1.997 trillion.

Mairs & Power Balanced Fund pointed out the following about Alphabet Inc. (NASDAQ:GOOG) in its 2025 investor letter for Q1:

“The fund’s holdings in the communications services sector were largely due to security options, delaying portfolio earnings in the quarter. Alphabet Inc. (NASDAQ:GOOG) leads the poor performance as it is at the same time as other Super Hat Tech stocks. In addition, people's impact on the Alphabet search business and whether it can respond meaningfully has attracted attention. ”

Laptops and phones are turned on for Google services in daily environments.

Alphabet Inc. (NASDAQ:GOOG) ranks seventh among the 30 most popular stocks in hedge funds. According to our database, 174 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the fourth quarter, compared with 160 in the previous quarter. In the first quarter of 2025, Alphabet Inc. (NASDAQ:GOOG) had revenue of $90.2 billion, with continued currency growth of 12% or 14%. Although we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) as an investment, our belief is that AI stocks have greater hope to offer higher returns and do so in a shorter time frame. If you are looking for AI stocks that are as promising as NVIDIA but have less than 5 times its earnings, check out our report Cheapest AI stocks.