Google is still a great investment, this fund manager says

Scotia Wealth Management fund manager Stan Wong says Alphabet’s (Alphabet Stock Quote, Chart, News, Analysts, Financials NASDAQ:GOOGL) AI monetization is becoming more visible, strengthening the case for a stock his firm has held for several years.

Speaking on BNN Bloomberg’s Market Call on June 11, Wong said concerns from a year or two ago about whether Alphabet could compete in artificial intelligence have faded.

“AI monetization is happening,” Wong said. “We’re seeing that in stronger cloud growth, deeper engagement, and broader monetization across its platform, including Gemini.”

Wong noted Google Cloud revenue rose 63% year-over-year in the most recent quarter, while search and advertising remain Alphabet’s core strengths and continue to generate strong cash flow.

He also pointed to the company’s broader ecosystem, including Gemini, AI chips, YouTube, Android and 350 million paid subscribers.

“We think of Apple as having a great ecosystem, but so does Alphabet,” Wong said. “This is a strong name with very good growth aspects, but still a relatively decent valuation.”

Wong said Alphabet offers investors exposure to AI upside, cloud momentum, platform dominance and a valuation that still looks reasonable.

The investor said the integration of AI into Google Search has also helped address investor fears that AI would disrupt the company’s core business.

“That AI mode has been a game changer for them,” Wong said. “When you search something on Google, you’ve got the AI mode much quicker. You don’t have to click on a link to research your own stuff.”

He said Gemini adoption has also been strong, with subscriptions moving higher as Alphabet ties the product into Google Cloud and consumer services such as Google Photos and Google Drive.

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