5 Most Promising Long-Term Stocks According to Analysts

4. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 152

One-Year Average Price Estimate: $123.80

Despite the short-term headwinds Alphabet Inc. (NASDAQ:GOOG) is facing amid the launch of ChatGPT and the perceived threats to Google’s dominance in search and advertising, several analyst are bullish on GOOG for the long term. BofA and Barclays recently said in their reports that Alphabet Inc. (NASDAQ:GOOG) is highly advanced in the AI race and ChatGPT won’t significantly damage the company’s search and ads business.

As of the end of the fourth quarter of 2022, 152 hedge funds out of the 943 funds tracked by Insider Monkey had stakes in Alphabet Inc. (NASDAQ:GOOG).

Weitz Partners III Opportunity Fund made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q4 2022 investor letter:

“Unfortunately, the performance story of the year is told by the Fund’s detractors. Now, weakening ad spending across all channels has added insult to injury, and concerns have spread to the other dominant digital ad player, Alphabet Inc. (NASDAQ:GOOG) — parent of Google and YouTube.

Meta, Alphabet, Amazon and CarMax were all top detractors for the quarter and calendar year periods (FIS and Liberty Broadband, respectively, complete the quarterly and calendar-year detractor lists.) To varying degrees, each is managing through cyclical challenges during a period of substantial investor pessimism. Drawdowns of this magnitude are painful, and it may be prudent for management to moderate the pace of some investments, but we remain encouraged by their long-term focus. In the short run, cutting spending indiscriminately to “defend earnings” may lessen the pain of a drawdown, but it seldom grows a company’s business value — the ultimate prize.”