What Makes Alphabet (GOOG) a Lucrative Investment?

Soumya Eswaran

Tue, Apr 15, 2025, 4:58 AM 3 min read

Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The U.S. equity market started the year with a modest decline, with the S&P 500 Index declining 4.27% during the quarter. Conversely, the Bloomberg U.S. Aggregate Bond Index rose 2.78% during the same period. The composite returned 0.78% gross of fees (0.73% net of fees) in the first quarter underperforming the 2.14% return of the Russell 1000 Value Index and outperforming -4.27% return of the S&P 500 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first quarter 2025 investor letter, Aristotle Value Equity Strategy emphasized stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was -0.74%, and its shares gained 3.51% of their value over the last 52 weeks. On April 14, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $161.47 per share with a market capitalization of $1.952 trillion.

Aristotle Value Equity Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q1 2025 investor letter:

"Headquartered in Mountain View, California and founded by Larry Page and Sergey Brin, Alphabet Inc. (NASDAQ:GOOG) is one of the world’s most dominant and innovative technology companies. Best known as the parent company of Google, Alphabet generates most of its revenue from digital advertising, particularly search. Google currently holds an estimated 87% market share in U.S. search and nearly 90% globally, underpinning a highly profitable ad business that accounts for roughly 75% of Alphabet’s total revenue.