5 Best Stocks to Buy According to Michael Burry

2. Alphabet Inc. (NASDAQ: GOOG) CALL

Number of Hedge Fund Holders: 155   

Alphabet Inc. (NASDAQ: GOOG) is placed second on our list of 10 best stocks to buy according to Michael Burry. The company operates in the internet and technology business. It is headquartered in California. Scion Asset Management owned CALL options on 91,900 shares in the technology company at the end of the second quarter of 2021. This stake is worth more than $230 million and represents over 11% of the portfolio. At the end of June 2021, Burry had increased stake in the firm by 15% compared to the first quarter of 2021. 

On July 28, investment advisory Wedbush reiterated an Outperform rating on Alphabet Inc. (NASDAQ: GOOG) stock and raised the price target to $3,424 from $3,127, underlining that the advertisement and cloud market were accelerating and expected to benefit the company. 

Out of the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in the firm with 2.9 million shares worth more than $7.3 billion. 

In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ: GOOG) was one of them. Here is what the fund said:

“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”