Aristotle Capital Management states that Alphabet (GOOGL) is proving AI can strengthen its search business
In its Q2 2026 investor letter, Aristotle Capital Management highlighted that Alphabet (Google's parent company) has continued to demonstrate the strength of its ecosystem and the resilience of its core businesses. The firm noted that Google Search has remained strong, with AI-powered features increasing user engagement while supporting advertising growth. Google Cloud has also benefited from robust enterprise demand for AI infrastructure and services. The fund believes Alphabet is increasingly capable of monetizing these new experiences through advertising, distribution, and integration across a broad user base, rather than solely relying on paid subscriptions. Aristotle Capital Management views Alphabet as a high-quality business with durable competitive advantages and multiple avenues for long-term value creation.
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