10 Best Big Data Stocks To Buy Now

05. Alphabet Inc. (NASDAQ:GOOGL)

Average Analyst Share Price Target Upside: 25.03%

Average Analyst Share Price Target: $203.74 

Alphabet Inc. (NASDAQ:GOOGL) saw strong growth in Q2 2024, with a 15% YoY revenue increase and a 31% rise in diluted EPS. Google Cloud Platform (GCP) grew nearly 29% YoY, enhancing its competitive edge in the cloud market. Alphabet Inc. (NASDAQ:GOOGL) first dividend and share buyback program also boost its appeal. Despite a recent 14% stock drop, it’s valued at 20-25x FY2024 earnings, suggesting a buying opportunity. Analysts have set a price target of $203.74, reflecting an anticipated upside of 25.03% as of August 16. While risks include regulatory challenges and AI competition, Alphabet Inc. (NASDAQ:GOOGL) strong data capabilities and innovation offer resilience.

Alphabet Inc. (NASDAQ:GOOGL) forward dividend yield is 0.49%, with an annual payout of $0.80 and a payout ratio of 2.87%. The company has announced a dividend of $0.20, with the ex-dividend date set for September 9, and the payout date scheduled for September 16. Shareholders must be on record by September 9, to receive the dividend.

Patient Capital Opportunity Equity Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q2 2024 investor letter:

“Alphabet Inc. (NASDAQ:GOOGL) was a top contributor in the second quarter, finally catching up to its peers in the Magnificent 7. The company gained 20.8% in the period following strong first quarter earnings, a new $70B repurchase program (3% of shares outstanding) and the initiation of a cash dividend ($0.20 per share; 0.42% yield). We continue to believe the market underappreciates Google’s exposure to AI with its Gemini model being integrated into search results, YouTube advertising and its cloud offering. We continue to think that the cloud players will be the AI winners in the long-term, with Google being well positioned to take advantage. While the company trades at 24x 2024 earnings, if you remove the money-losing and under-earning businesses, you realize that you are paying below a market multiple for the core Google business. We do not believe there are many other AI winners trading at such an attractive multiple.”