10 High Growth NASDAQ Stocks That Are Profitable in 2024

3. Alphabet Inc. (NASDAQ:GOOGL)

5-Year Net Income Growth: 20.33%

5-Year Revenue Growth: 17.23%

TTM Net Income: $87.66 Billion

Number of Hedge Fund Holders: 216

Alphabet Inc. (NASDAQ:GOOGL) ranks 3rd on our list of high-growth NASDAQ stocks that are profitable in 2024. It is one of the Magnificent Seven technology companies known for its subsidiary Google.

The company has significant development in artificial intelligence, Google Cloud, and is known for its other products as well including YouTube, Gmail, and Android Operating systems among others. Investors are on the lookout for its autonomous driving venture, Waymo.

While Tesla gets the majority coverage when it comes to self-driving car ambition, however, Alphabet Inc. (NASDAQ:GOOGL) with its Waymo venture has quietly made significant progress. Last week the company announced a significant robotaxi deal with Hyundai, a South Korean automaker. With this multi-year strategic partnership, Hyundai will use the autonomous driving technology of Waymo in 5 of its SUVs for the next 5 years.

Alphabet Inc. (NASDAQ:GOOGL) plans to launch its robotaxis for test drives by the end of 2025 and is expected to deploy a large fleet on public roads in the following years. It won’t be wrong to say that Alphabet Inc. (NASDAQ:GOOGL) is leading the robotaxi race as a fleet of around 700 self-driving cars are already operating in major states of the United States including Phoenix, Los Angeles, and San Francisco. The company is testing its services in Texas as well.

If we talk about Alphabet Inc. (NASDAQ:GOOGL) as a whole, the company has been generating significant revenues on the back of its search and cloud segments. The revenue for the second quarter of 2024 was up 14% year-over-year to reach $85 billion. Moreover, the company has generated more than $87 Billion in net income on a trailing twelve-month basis.

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.”