10 Best Fortune 500 Stocks To Buy Now

3. Alphabet Inc. (NASDAQ:GOOGL)

Market Capitalization as of September 14: $1941.84 billion

Number of Hedge Fund Holders: 216

Alphabet Inc. (NASDAQ:GOOGL), the parent company of Google, is one of the world’s largest technology companies. It encompasses a wide range of businesses, including Google Search, Google Maps, YouTube, Google Cloud, and Waymo, and is known for its innovative products and services, and its focus on AI and other cutting-edge technologies.

The company also has a direct presence in the autonomous driving industry through its Waymo business division. More than 700 Waymo cars are present in San Francisco alone, and they have also come under criticism for fires, crashes, and traffic violations. It also offers robotaxi services, and Waymo shared in August that it offers 100,000 robotaxi rides in San Francisco, Los Angeles, and Phoenix, Arizona.

Alphabet Inc. (NASDAQ:GOOGL) is projected to achieve a $100 billion revenue run rate from YouTube Ads and Google Cloud by the end of 2024. In Q2, Cloud revenue alone increased by 28.8%. Overall revenue grew by 13.59%, totaling $84.74 billion. Google currently holds approximately 91.06% of the search engine market.

Google plans to spend $50 billion on AI initiatives by the end of 2024. Alphabet Inc. (NASDAQ:GOOGL) leverages strong competitive advantages through its algorithms, AI expertise, and valuable data access. Its capabilities suggest a positive outlook for the future. 216 hedge funds are long GOOGL, with the highest stake at $8,856,226,893 by Fisher Asset Management.

Patient Capital Management 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.”