5 Best Content Delivery Network Stocks To Buy Now

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holdings: 153

Based out of Mountain View, California, Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company. Its primary subsidiary, Google, focuses on search engine technology, online advertising, cloud computing, e-commerce, artificial intelligence, and content delivery networks. Google Cloud CDN is the company’s CDN service which facilitates clients in distributing content which is hosted on-premises or in another cloud, using Google’s global edge network. It accelerates the customer’s websites and applications and offers global server coverage. In Q2 2022, the company posted a total revenue of more than $69.69 billion.

On October 4, BofA analyst Justin Post lowered the price target on Alphabet Inc. (NASDAQ:GOOG) to $114 from $125, maintaining a Buy rating on the shares. The analyst lowered the price target due to the potential top-down impact of a GDP recession in the Western economy, as well as potential headwinds from the monetization of TikTok. However, the stock’s strong free cash flow, coupled with a favorable earnings yield over time, makes it one of the best content delivery network stocks to buy now. The analyst sees potential in the strong resilience with regards to the EPS, which will further be complimented by cost-cutting in 2023.

Here is what Lakehouse Capital had to say about Alphabet Inc. (NASDAQ:GOOG)  in their Q2 2022 investor letter:

“Alphabet Inc. (NASDAQ:GOOG) reported another strong quarterly result despite the tough macroeconomic conditions. Revenue increased by 13% as Search proved resilient, primarily led by strength in the travel and retail verticals. YouTube advertising growth was lighter and moderated due to a tough comparison period and a general softening in brand advertising spend. That said, YouTube’s user engagement and time spent still continues to grow which bodes well for future monetization opportunities. Google Cloud outpaced the company’s overall growth with revenue increasing by 36% and while it has yet to show any signs of profitability, we remain supportive of Alphabet continuing to reinvest in its cloud business given the size of the market opportunity ahead. On the cost front, the company added another 10,000 employees during the quarter, but notably, the CFO mentioned that hiring will likely slow down over the next twelve months as the company focuses on greater operating efficiency. Overall, we’re pleased with how the company has performed and are confident that management will be able to control costs, if or when the economic environment becomes more challenging.”