5 Best Growth Stocks To Buy According To George Soros

2. Alphabet Inc. (NASDAQ:GOOG)

Stake Value: $183,737,909

Goldman Sachs recently rolled out a list of stocks it believes are quality names to buy for 2024. Goldman Sachs believes these companies have strong “balance sheet strength, stable sales and earnings growth, high return on equity, and low historical drawdown risk.” Alphabet Inc. (NASDAQ:GOOG) was one of the top-quality stocks recommended by Goldman Sachs as part of this list.

George Soros’ hedge fund owns a $184 million stake in Alphabet Inc. (NASDAQ:GOOG). As of the end of the second quarter of 2023, 204 hedge funds reported owning stakes in Alphabet Inc. (NASDAQ:GOOG). The biggest stakeholder of Alphabet Inc. (NASDAQ:GOOG) was Natixis Global Asset Management’s Harris Associates which owns a $3.2 billion stake in the company.

RiverPark Advisors made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2023 investor letter:

Alphabet Inc. (NASDAQ:GOOG): Internet services leader Alphabet was a top contributor in the third quarter following a strong 2Q23 earnings report in July. All divisions performed better than investors’ expectations, including stabilization of Search revenue growth, a return to growth for YouTube, and expanded profitability for Google Cloud. Management highlighted AI tools (according to the company, 80% of advertisers use at least one of the company’s advertising AI tools) as well as a re-acceleration in advertising growth. In addition, YouTube benefited from mass user adoption of YouTube Shorts (2+ billion monthly users) and growing advertiser adoption of Connected TV offerings. Google Cloud continued its strong growth and market share gains (28% y/y revenue growth) and even more impressive operating margin gains (+14 points y/y).

With its high-margin business model (25% operating margin last quarter), continued strength across its core Search and YouTube franchises, and emerging strength and profitability in its still relatively small Cloud business, we continue to view Alphabet as among the best-positioned secular growth franchises in the market. Additionally, GOOG shares trade at a compelling 20x the Street’s 2024 EPS estimate, a discount to the Russell 1000 Growth Index.”