Aristotle Value Equity Fund on Alphabet
Thesis
Aristotle originally invested in Alphabet when investors feared generative AI would erode Google's search and advertising franchise. The fund believes subsequent execution has demonstrated the durability of Alphabet's ecosystem, with AI-powered search supporting engagement, Google Cloud benefiting from enterprise AI demand and YouTube retaining attractive advertising and subscription opportunities. Alphabet's ability to monetize AI through advertising, distribution and integration across its broad user base supports Aristotle's view that the company retains durable competitive advantages and multiple paths to long-term value creation.
“Recent execution reinforces our view that Alphabet remains a high-quality business with durable competitive advantages and multiple avenues for long-term value creation.”
Key risks
- Regulatory risk
- Capital intensity
- Changes in search behavior