10 Most Promising Future Stocks According to Analysts

6. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders as of Q2: 216

Analyst Upside as of October 10, 2024: 26%

Alphabet Inc. (NASDAQ:GOOGL)’s wide range of internet-related services and goods allows it to maintain its dominance in the digital market. One of the main factors contributing to Alphabet’s success has been the incorporation of AI throughout its product line.

Artificial intelligence (AI) technologies are improving user engagement and advertising efficiency, from YouTube content recommendations to search algorithms. Despite competition from new chatbot technologies, Alphabet has maintained its market leadership in search thanks to this technological advantage, with reports showing an increase in market share.

Alphabet Inc. (NASDAQ:GOOGL)’s 2024 second-quarter results were outstanding, exceeding revenue and earnings per share (EPS) forecasts. AI-driven advancements that improved ad performance and marketer return on ad spend (ROAS) drove the company’s core search business to show strong growth. Due to the increased demand for AI-related services, Google Cloud Platform (GCP) also demonstrated accelerated growth, surpassing the expansion of the entire cloud segment.

With a substantial revenue of $328.28 billion over the past 12 months, Alphabet Inc. (NASDAQ:GOOGL) has demonstrated an impressive 13.38% growth in revenue. The analyst’s assessment that search growth projections may have been underestimated is supported by this growth trajectory.

Because it is expanding, the digital advertising market is a desirable area to invest in. Digital advertising spending is anticipated to rise by 12% annually in 2024 and maintain double-digit growth through at least 2026.

Consequently, Google’s ad revenue increased from $42.6 billion in 2023 to $48.5 billion in the second quarter. Almost 60% of Alphabet’s $84.7 billion in Q2 sales came from this. Alphabet gets its ad revenue from sources other than Google. YouTube, the world’s second-largest website after Google, is also owned by the conglomerate. In Q2, YouTube’s ad sales brought in $8.7 billion for Alphabet, up from $7.7 billion the year before.

The robust revenue and earnings growth due to AI integration to enhance advertising is one reason the company is rated as a buy with an average price target of $206.60, implying a 26.87% change from the last price of $162.84.

Overall, 216 investors held stakes worth $35.31 billion in Alphabet Inc. (NASDAQ:GOOGL). According to the Insider Monkey database, Fisher Asset Management was the highest stakeholder, with a position of $8.86 billion.