5 Best Communication Stocks To Buy Now

2. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 158

Alphabet Inc. (NASDAQ:GOOG) is a worldwide conglomerate which operates a number of social media platforms, its own mobile operating system, and the world’s most used search engine, all of which combine to give it unparalleled dominance in the online advertising market. As of April 7, the share price of Alphabet Inc. (NASDAQ:GOOG) has soared 20.48% in the last 12 months, and 7.22% in the last 1 month.

On March 10, Deutsche Bank analyst Ben Black initiated coverage of Alphabet Inc. (NASDAQ:GOOG) with a ‘Buy’ rating and $3,150 price target. Black sees Alphabet benefitting from the secular trend of businesses shifting from physical locations to online mediums, and the increasing prevalence of e-commerce as a channel within global retail.

Alphabet Inc. (NASDAQ:GOOG) reported an EPS of $30.69 in the fourth quarter, outperforming analysts’ forecasts by $3.41. Its revenue for Q4 2021 stood at $75.33 billion, signaling an increase of 32.39% as compared to the year-ago quarter and beating estimates by $3.50 billion.

158 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG) shares in Q4 2021, in contrast to 156 in the preceding quarter. TCI Fund Management was the largest shareholder of the tech firm over the fourth quarter, with 2.95 million shares worth $8.54 billion.

Vulcan Value Partners, an investment firm, talked about many stocks in its Q4 2021 investor letter and Alphabet Inc. (NASDAQ:GOOG) was one of them. The fund said:

“In contrast, we made a different kind of mistake about a decade ago. Google, now Alphabet, performed very well for us while we owned it. The company kept outperforming our assumptions and we kept lowering them to be conservative. “Trees do not grow to the sky.” The stock kept going up and our value grew but did not keep pace with the stock. It hit our estimate of fair value and we sold it with a nice gain, patting ourselves on the back. We kept following the company and what they actually did over the next several years was roughly double the assumptions we used to value it. Therefore, our value was too conservative, and we sold it too cheaply, missing many years of compounding. Fortunately, we experienced some volatility several years ago that allowed us to purchase Alphabet (Google) again with a margin of safety.”