10 Most Owned Stocks by Hedge Funds Right Now

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 216

Alphabet Inc. (NASDAQ:GOOGL) is one of the world’s leading technology companies by revenue and owns several notable platforms such as Google Search, Google Maps, Gmail, YouTube, and more.

On August 5, the US Department of Justice ruled against Alphabet in an anti-trust lawsuit regarding search dominance, with the judge declaring that the company stifled competition in the online search market to maintain its monopoly. This could lead to the company paying billions of dollars in hefty fines or legal settlements. Then earlier this month, in another case, a district judge ordered Google to overhaul its mobile app business and open the Play Store to rival firms. These verdicts have hurt Alphabet’s reputation and led to a bearish sentiment in some circles.

Financially, the company continues to remain strong. Driven by solid performances from Google Search and Google Cloud, Alphabet reported robust results in Q2 with revenues totaling $84.7 billion, increasing 14% from last year. Net income for the quarter stood at $23.6 billion, which represented an EPS of $1.89, beating analysts’ expectations of $1.85 per share.

Google Services revenue was recorded at $73.9 billion, up from $66.2 billion in 2023. The ‘Google Search & Other’ segment revenue totaled $48.5 billion, while YouTube and Google Network earned $8.7 billion and $7.4 billion in revenues during Q2. Strong results during the quarter have helped Alphabet Inc. (NASDAQ:GOOGL) garner substantial investor optimism. Here is what The London Company Large Cap Strategy stated about Alphabet in its Q2 2024 investor letter:

Alphabet Inc. (NASDAQ:GOOGL) – GOOG was a top performer this quarter as it reported strong Search revenue, tighter cost controls, and momentum in Cloud. Both direct and brand Search ads were better than expected and the strength in YouTube monetization continues. Expense controls have translated to 700bps of margin improvement. Management is removing layers to improve efficiency, which should drive margins higher. GOOG also provided details on paths to monetize Al for advertisers. GOOG initiated a dividend during the quarter to return additional cash to shareholders. It has a solid balance sheet, a significant market share, and generates strong returns.

According to the Insider Monkey database for Q2 2024, Alphabet is one of the most owned stocks by hedge funds right now, with 216 funds having a stake in the company. Wall Street analysts are also bullish on the stock, with consensus among them on Alphabet’s Buy rating. They also anticipate an upside potential of 20% in the company’s share price.