10 Best Stocks to Buy According to Billionaire Ray Dalio

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1. Alphabet Inc. (NASDAQ:GOOG)

Bridgewater Associates Equity Stakes: $685.51 Million

Number of Hedge Fund Holders: 234

Alphabet Inc. (NASDAQ:GOOG) is a technology giant that operates in diverse areas of internet services, cloud computing, healthcare, and autonomous vehicles. It generates a good chunk of its revenues from digital advertising. According to billionaire Ray Dalio, it is one of the best stocks to buy, as it owns two of the most valuable brands, Google and YouTube, that benefit from AI.

Because it runs the most popular search engine, Alphabet Inc. (NASDAQ:GOOG) is one of the top internet advertisers. It logged a 36% increase in net income to $100 billion in 2024 on $350 billion in revenue in 2024 thanks to the lucrative advertising business. Additionally, its cloud services reported a 30% year-over-year increase in revenue, having emerged as a key driver of underlying growth.

Alphabet Inc. (NASDAQ:GOOG) ended 2024 with a bolstered balance sheet with $96 billion in cash, cash equivalents, and short-term marketable securities. Consequently, it remains in a solid financial position to pursue strategic investments in AI and other areas capable of strengthening its product line and competitive edge. Additionally, it can make appropriate investments for growth, putting it in a position to weather economic storms, which is key to long-term stability.

While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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