FPA Crescent Fund on Alphabet Inc.
Thesis
Search has remained resilient despite the potential for generative AI to alter consumer behavior. Google Cloud is seeing demand for AI infrastructure, and AI features are being integrated across Alphabet products. YouTube and Waymo provide additional sources of long-term value.
“Search remained resilient despite concerns that generative AI could disrupt traditional search behavior”
Key risks
- Generative AI could disrupt traditional search behavior
- The company must maintain its competitive AI positioning