10 Best Fundamental Stocks to Buy According to Billionaires

7. Alphabet Inc. (NASDAQ:GOOG)

5-year Revenue Growth: 16.6%

5-year Net Income Growth: 23.8%

Number of Billionaire Investors: 24

Number of Hedge Fund Holders: 174

A reputed investor, with the pseudonym Juxtaposed Ideas, opines that the dip in Alphabet Inc. (NASDAQ:GOOG)’s stock offers a limited window to buy in. The investor expressed optimism regarding the Google Services business, with the company being able to monetize the existing offerings. Furthermore, the investor opines that Alphabet Inc. (NASDAQ:GOOG)’s autonomous segment is expected to act as a long-term growth driver. The company’s ongoing investments in AI technology can create significant value throughout the diverse portfolio of products and services.

In search, the integration of more advanced AI models can help in improving query understanding as well as result relevance, enhancing user engagement and ad effectiveness. This could help Alphabet Inc. (NASDAQ:GOOG) maintain its search market dominance as well as fuel continued growth in advertising revenues.  The company’s AI advancements can result in breakthrough products in emerging fields, including autonomous vehicles (through Waymo) and quantum computing. In cloud computing, Alphabet Inc. (NASDAQ:GOOG)’s AI capabilities can help it stand apart from competitors, resulting in more enterprise customers and fueling higher-margin service adoption.

Columbia Threadneedle Investments, an investment management company, released Q4 2024 investor letter. Here is what the fund said:

“Alphabet Inc. (NASDAQ:GOOG) (parent company Alphabet) generated strong double-digit returns during the quarter, as the company’s tremendous innovation in AI, along with strength in its core business of search and advertising and a healthy focus on profit growth and shareholder friendly capital allocation, shifted investor focus away from ongoing litigation with the Department of Justice related to market dominance. In the month of December alone, Google released to the public Gemini 2.0, its most capable AI model yet, as well as new generative image and vision models. And if that was not enough, Google also announced progress in quantum computing. Once considered an AI laggard, the flurry of product announcements and AI development did not go unnoticed by the market and the stock reacted accordingly.”