10 Best Strong Buy Stocks To Buy Right Now

7. Alphabet Inc. (NASDAQ:GOOG)

Analyst Upside: 32.02%

Number of Hedge Fund Holders: 174

Alphabet Inc. (NASDAQ:GOOG) is a holding company with segments including Google Services, Google Cloud, and Other Bets. The Google Services segment operates various services and products, including Android, Google Maps, Google Play, Chrome, Search, and YouTube. Alphabet Inc. (NASDAQ:GOOG) has sound operations. Fiscal Q4 2024 showed a 12% growth in overall revenue and a 12.5% growth in search revenue. YouTube grew by 13.8%, while revenue from Google Cloud rose by around 30% to $12 billion.

The company announced it would invest $75 billion in capex this year, up from $53 billion in 2024. Its stock has risen nearly 150% over the last five years, including around 45% growth since OpenAI released GPT-4o in May 2023. Investors expect Alphabet Inc.’s (NASDAQ:GOOG) stock to continue on a positive growth trajectory due to its investments in AI. Google Cloud is another significant growth driver for the company. Even though it makes only 12% of company revenue, it rose 31% yearly, bringing a positive light to its operations.

Merion Road Capital Management stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q4 2024 investor letter:

“Alphabet Inc. (NASDAQ:GOOG): We have held GOOG for a long time (since 2018) on the basis of its immense business quality paired with an undemanding valuation, improving treatment of minority shareholders, and multiple options for value creation. Recently we have seen Alphabet bashed for losing the AI race to now heralded for its progress. I remain excited about their prospects with several near-term, mid-term, and long-term tailwinds. Near-term, Google Cloud continues its rapid growth and their latest large language model, Gemini 2.0, appears to have made significant progress to better serve consumer needs and improve GOOG’s other product offerings. Mid-term, Waymo is on the cusp of becoming a real value driver for the company; there are abundant articles discussing Waymo stealing share from the ride-share economy and launching in new geographies. Long-term, GOOG’s recently announced quantum computing chip positions it well for a future (many, many years away) where computing process are fundamentally different than today. All of these options are embedded in a company that already has an established and dominant earnings stream.”