5 Best Cybersecurity Stocks to Buy Now

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1. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 153

Alphabet Inc. (NASDAQ:GOOG), the American technology conglomerate, announced in March 2022 that it will purchase the cybersecurity firm Mandiant Inc. for $23 per share in cash. The total value of the acquisition was $5.4 billion. The Mandiant purchase will result in Alphabet Inc. (NASDAQ:GOOG) providing higher data security to its clients and it was Alphabet’s foray into the booming cybersecurity space.

Tigress Financial analyst Ivan Feinseth on August 3 raised the price target on Alphabet Inc. (NASDAQ:GOOG) to $186 from $183 and kept a Strong Buy rating on the shares, citing the resiliency of its core business in Cloud and Search and the ongoing investment in Artificial Intelligence, which continues to drive “increasingly focused and helpful experiences for users and businesses.”

According to Insider Monkey’s data, 153 hedge funds were long Alphabet Inc. (NASDAQ:GOOG) at the end of the second quarter of 2022, compared to 160 funds in the last quarter. Chris Hohn’s TCI Fund Management is one of the leading position holders in the company, with 2.5 million shares worth $5.4 billion. 

Here is what Distillate Capital has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q2 2022 investor letter:

“The largest adds were Alphabet, the parent of Google, and Meta, formerly called Facebook. Alphabet came into the portfolio at the last rebalance after Q1 2022, but was increased again as valuation improved with a decline in enterprise value despite rising free cash flow estimates. Figure 13 plots the indexed change in Alphabet’s enterprise value and free cash flow estimates since the start of the year and the overall result looks very similar to the lines for Apple on the previous page. In conjunction with the stability in cash flows highlighted earlier, this makes Alphabet look very appealing. In contrast to Alphabet, Figure 14 shows the same indexed enterprise value and rolling next-twelve-month consensus estimate for free cash flow for Amazon, and highlights how Amazon’s performance has largely followed downward revisions in its estimated profitability.”

You can also take a look at 11 Best Big Data Stocks To Invest In and 15 Best Gambling Stocks To Buy

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