11 Best Reddit Stocks to Invest In

2. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 174

TD Cowen analyst John Blackledge has maintained their bullish stance on Alphabet Inc. (NASDAQ:GOOG)’s stock, giving a “Buy” rating on March 10. The analyst’s rating is backed by the expected growth and strategic positioning of Google Cloud, mainly in the realm of GenAI. The analyst expects Google Cloud to significantly increase the GenAI revenue.  The growth is expected to stem from the adoption of Alphabet Inc. (NASDAQ:GOOG)’s Gemini models, which continue to gain traction among developers and are regarded as a competitive advantage over AWS and Azure.

Furthermore, Blackledge noted the significant capital expenditure Alphabet Inc. (NASDAQ:GOOG) has been committing to its AI infrastructure, which can increase over the upcoming years. The investment focuses on addressing current capacity constraints as well as aiding the higher demand for Google Cloud’s AI offerings. Overall, the combination of such factors, which include the potential for GenAI to be a larger portion of Alphabet Inc. (NASDAQ:GOOG)’s overall revenue, supports the rating.

Columbia Threadneedle Investments, an investment management company, released its Q4 2024 investor letter.  Here is what the fund said:

“Alphabet Inc. (NASDAQ:GOOG) (parent company Alphabet) generated strong double-digit returns during the quarter, as the company’s tremendous innovation in AI, along with strength in its core business of search and advertising and a healthy focus on profit growth and shareholder friendly capital allocation, shifted investor focus away from ongoing litigation with the Department of Justice related to market dominance. In the month of December alone, Google released to the public Gemini 2.0, its most capable AI model yet, as well as new generative image and vision models. And if that was not enough, Google also announced progress in quantum computing. Once considered an AI laggard, the flurry of product announcements and AI development did not go unnoticed by the market and the stock reacted accordingly.”