1. Alphabet Inc. (NASDAQ:GOOGL)
Total Number of Shares Owned: 4,540,271
Total Value of Shares Owned: $827,010,363
Number of Hedge Fund Investors: 216
Topping our list of the 10 best stocks to buy according to billionaire Ray Dalio is Alphabet Inc. (NASDAQ:GOOGL). Alphabet Inc. (NASDAQ:GOOGL) stems from its strong financial performance, highlighted by a Q2 2024 revenue of $74.6 billion, which represents a 12% increase from the previous year, and a net income of $19.5 billion. Advertising remains a crucial driver, with Google Ads growing by 10% to reach $61.9 billion. The Google Cloud division also saw impressive growth, increasing by 27% to $8.9 billion, showing Alphabet Inc. (NASDAQ:GOOGL)’s expanding influence in the enterprise sector.
A key factor in Alphabet Inc. (NASDAQ:GOOGL)’s success is its significant investment in artificial intelligence, which has led to enhancements across its services, particularly in Google Search and YouTube. Alphabet Inc. (NASDAQ:GOOGL)’s focus on short-form content has helped boost ad revenue, positioning it well against competitors like TikTok. Despite facing regulatory challenges, Alphabet Inc. (NASDAQ:GOOGL) has demonstrated resilience by actively engaging with regulators and adjusting its practices to manage risks effectively.
Additionally, Alphabet Inc. (NASDAQ:GOOGL)’s strategy of investing in emerging technologies and startups has strengthened its AI capabilities and diversified its product offerings. Recent initiatives, such as adding advanced AI features in Google Workspace and committing to ethical AI practices, showcase its proactive approach to future growth. Altogether, Alphabet Inc. (NASDAQ:GOOGL)’s strong financials, innovative advancements, and strategic responses to challenges make a compelling case for a positive outlook on its future.
Bridgewater holds 4,540,271 shares of Alphabet Inc. (NASDAQ:GOOGL), valued at $827 million.
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.”
While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOGL), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than the ones on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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