5 Best Virtual Reality Stocks to Buy

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Funds (Class A shares): 209

Number of Hedge Funds (Class C shares): 158

Alphabet Inc. (NASDAQ:GOOG) started its virtual reality project in 2014 with Google Cardboard. It ranks as the third most valuable technology company by revenue. Alphabet Inc. (NASDAQ:GOOG)’s annual compound growth rate has been 23.3% and it has an operating margin of 30%. Moreover, the EPS CAGR for the company is 32.1%.

According to Alphabet Inc. (NASDAQ:GOOG)’s first-quarter 2022 reports, the company generated $68.01 billion in revenue, an increase of about 23% from the same period last year. Google Cloud remained a prominent factor in the earnings report as it generated $5.8 billion, reflecting a 44% revenue surge.

According to the Insider Monkey database, 158 hedge funds held stakes in Alphabet Inc. (NASDAQ:GOOG) in the fourth quarter of 2021.

Here is what Farrer Wealth Advisors said about Alphabet Inc. (NASDAQ:GOOG) in their first-quarter 2022 investor letter:

“Alphabet: We won’t waste much time trying to explain to our clients why Alphabet is such a phenomenal business, we believe that is quite self-evident. The better explanation is why we never bought Alphabet before. The reason was a personal bias we held based on three beliefs (which we now believe to be incorrect)

Growth in YouTube would stall as the increased ad-load would turn-off viewers (the double ad-load at the beginning of videos for example). Consumers will focus on discovery rather than search to purchase new items. For example – using Instagram/TikTok to decide what new clothes to buy instead of ‘googling’ for clothes. Other Bets: In general, we felt that capital spent on “Other Bets” has been a bit wasteful with the segment earning just around $3.1bn in revenue versus nearly $21bn in operating losses over the last five years…” (Click here to see the full text)