Lakehouse Global Growth Fund on Alphabet Inc.
Thesis
Alphabet was the fund's strongest contributor as investor concerns shifted from AI cannibalisation of Search toward recognition of the company's AI advantages. Search growth reaccelerated while AI Overviews and AI Mode increased monetisable queries, supporting Lakehouse's view that Search is expanding rather than being displaced. Google Cloud growth accelerated to 63% and backlog roughly doubled to more than $460 billion despite capacity constraints. Lakehouse considers Alphabet uniquely positioned through its integrated stack of chips, infrastructure, models, data and distribution and continues to treat it as a core holding.
“it remains a core holding in the portfolio.”
Key risks
- AI could cannibalise traditional Google Search economics if monetisation develops differently from the fund's expectations.
- Cloud demand continues to exceed available capacity.