10 Best Internet Content Stocks to Buy

4. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 165

Alphabet Inc. (NASDAQ:GOOG), a holding company, owns all of Google, the biggest online company. Slightly less than 90% of the overall revenue generated by the California-based company is derived from the sales of adverts on Google services. Google services also include online advertisements and sales from Google’s platforms (Play Store sales and in-app purchases), devices (Chromebooks, Pixel smartphones, and smart home products like Chromecast), and subscription services (YouTube TV, YouTube Music, among others). Google Cloud, the company’s cloud computing platform, generates about 10% of Alphabet’s revenue. The remaining amount is derived from the company’s investments in cutting-edge technologies, such as Waymo, Google Fiber, and internet and health access.

Alphabet Inc. (NASDAQ:GOOG) is viewed by analysts as a group of exceptional enterprises. It has become a dominant force in the technology industry, generating tens of billions of dollars in free cash flow annually, with offers ranging from self-driving vehicles and cloud computing to advertising. Despite antitrust concerns surrounding Alphabet’s main search business, investors remain confident in the company’s overall strength and believe it will maintain its leadership position in multiple industries, including search, artificial intelligence, video, and cloud computing.

Diamond Hill Large Cap Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter:

“Among our top individual contributors in Q2 were Amazon, Texas Instruments and Alphabet Inc. (NASDAQ:GOOG). Media and technology company Alphabet also continued delivering strong results in its search, YouTube advertising, YouTube subscription and cloud businesses. Shares rose amid an environment that continues favoring mega-cap technology companies.”