Eagle Capital Management, LLC on Alphabet Inc.
Thesis
Alphabet gives Eagle exposure to both Google Cloud and large consumer platforms such as Search and YouTube. Google Cloud has become a much stronger hyperscaler competitor, while AI is already improving the effectiveness of Google's core advertising and search products. Eagle expects the combination of cloud growth, consumer scale and AI-enabled monetization to support strong earnings growth over the next several years.
“We believe AI is demonstrably helping Google Search and Meta’s advertising business.”
Key risks
- Cloud customer concentration could pressure hyperscaler returns.