10 Good Stocks to Buy According to Hedge Funds

4. Alphabet Inc. (NASDAQ:GOOGL)

No of Hedge Fund Holders: 234

Alphabet Inc. (NASDAQ:GOOGL) is a global technology company that provides a wide range of products and services across the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. Operating through three main segments—Google Services, Google Cloud, and Other Bets—the company offers popular platforms such as Search, YouTube, Android, Google Maps, and Google Play.

Alphabet Inc. (NASDAQ:GOOGL) is doubling down on its AI-driven growth strategy with a $75 billion capital expenditure plan for 2025, prioritizing investments in technical infrastructure, including servers and data centers. This aggressive spending underscores the company’s commitment to scaling AI capabilities and meeting surging demand for AI-powered services. In tandem with these investments, the company is also restructuring its Cloud division, cutting fewer than 100 positions in sales operations. This was done to streamline resources toward AI and other high-priority growth areas.

Alphabet Inc. (NASDAQ:GOOGL) delivered a strong Q4 2024 performance, with revenues rising 12% YoY to $96.5 billion, driven by double-digit growth in Google Services up 10% and Google Cloud up 30%. Operating income surged 31% YoY, expanding the operating margin to 32% (up 5 percentage points), highlighting improved efficiency and AI-driven cost optimizations. Net income climbed 28%, while EPS jumped 31% to $2.15, reflecting strong profitability. CEO Sundar Pichai emphasized AI innovation as a key growth driver, citing Google Cloud’s AI infrastructure and YouTube’s dominance in streaming.