10 Best Stocks to Buy According to Seth Klarman

3. Alphabet Inc. (NASDAQ:GOOGL)

Baupost Group’s Equity Stake: $271.57 Million

Number of Hedge Fund Holders: 234

Alphabet Inc. (NASDAQ:GOOGL) is an internet giant with Google as its primary subsidiary. It offers internet-related products and services and other ventures like self-driving cars and life sciences research. It is one of the best stocks to buy for investors eyeing exposure in the multibillion-dollar digital advertising businesses.

Additionally, it offers exposure to the lucrative cloud computing segment and booming artificial intelligence landscape. Its cloud unit, Google Cloud has already teamed up with SLB and Project Innerspace to accelerate the adoption of global geothermal energy and allow companies to develop promising geothermal resources.

Alphabet Inc. (NASDAQ:GOOGL) delivered a mixed fourth quarter of 2024 results as revenue increased 12% to $96.47 billion but missed estimates of $96.67 billion. On the other hand, earnings per share rose to $2.15 from $1.64 a share in the same quarter the previous year. The company’s long-term prospects remain intact, having announced plans to spend $75 billion in 2025 as it eyes opportunities around artificial intelligence.

Alphabet Inc.’s (NASDAQ:GOOGL) digital advertising business is also growing at an impressive rate as revenues surged by 11% in 2024. While advertising revenue represented 76% of the total revenue, it was a drop from 77%, affirming how other segments are increasingly contributing to top-line growth. Cloud computing should remain a key growth driver as its revenue increased by 31% last year while accounting for 12% of the total revenue.