Alphabet’s (GOOG) Sustainable Growth Outlook Appears Stronger Than Expectations

Loomis Sayles Global Growth Fund, an investment management company, released its Q2 2026 investor letter, highlighting Alphabet Inc. (NASDAQ:GOOG) as a strong performer. Alphabet Inc., the parent company of Google, returned 4.65% over the past month and gained 63.39% over the past 52 weeks. The fund's Q2 2026 letter noted Alphabet's significant market capitalization of $4.2 trillion and its leading position in online search and advertising, cloud solutions, and artificial intelligence.

Alphabet dominates the US and global search market with over 80% of search volumes, leading to better search results, higher customer conversion rates for advertisers, and a dominant share of search revenue. The company's large network of consumers, advertisers, and publishers creates a powerful business ecosystem, attracting more participants and fostering a virtuous cycle for sustainable growth.

Despite Alphabet's substantial growth, Loomis Sayles believes other AI stocks offer greater upside potential and less downside risk.