10 Best Stocks To Invest In According to Billionaires

2. Alphabet Inc. (NASDAQ:GOOGL)

Number of Billionaire Investors: 34

Alphabet Inc. (NASDAQ:GOOGL) is a tech giant operating through segments including Google Services, Google Cloud, and Other Bets. The company offers a wide range of products, including ads, Android, Chrome, Search, and YouTube, and continues to dominate the search market while integrating artificial intelligence to enhance user experiences.

Evercore ISI recently revised its price target for Alphabet Inc. (NASDAQ:GOOGL), lowering it from $225 to $200, but maintained its Outperform rating. The revision is linked to concerns about the ongoing Department of Justice antitrust trials and potential remedies that could see Google lose 20% to 50%+ of its U.S. search market share. However, Evercore ISI believes the impact on Alphabet’s earnings per share would be minimal, with a potential market share loss of 60% only affecting EPS by a single-digit percentage, thanks to savings on Traffic Acquisition Costs.

In the second quarter, Alphabet Inc. (NASDAQ:GOOGL) reported a 14% increase in total revenue, reaching $84.74 billion. YouTube generated $8.7 billion in advertising revenue, up 13% year-over-year, while Google Cloud saw a 29% jump in revenue, surpassing $10 billion. With a solid balance sheet and strong free cash flow, Alphabet Inc. (NASDAQ:GOOGL) has initiated dividend payments, confirming a $0.20 dividend with a 0.49% yield as of September 23.

As of the end of Q2 2024, 34 billionaires tracked by Insider Monkey held stakes in Alphabet Inc. (NASDAQ:GOOGL), with a combined value of $13.4 billion.

Patient Capital Opportunity Equity Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q2 2024 investor letter:

“Alphabet Inc. (NASDAQ:GOOGL) was a top contributor in the second quarter, finally catching up to its peers in the Magnificent 7. The company gained 20.8% in the period following strong first quarter earnings, a new $70B repurchase program (3% of shares outstanding) and the initiation of a cash dividend ($0.20 per share; 0.42% yield). We continue to believe the market underappreciates Google’s exposure to AI with its Gemini model being integrated into search results, YouTube advertising and its cloud offering. We continue to think that the cloud players will be the AI winners in the long-term, with Google being well positioned to take advantage. While the company trades at 24x 2024 earnings, if you remove the money-losing and under-earning businesses, you realize that you are paying below a market multiple for the core Google business. We do not believe there are many other AI winners trading at such an attractive multiple.”