5 Stocks That Will Outperform the S&P 500 in 2024

3. Alphabet Inc (NASDAQ:GOOGL)

Number of Hedge Fund Investors: 221

An overwhelming number of Redditors believe Alphabet Inc (NASDAQ:GOOGL) has the potential to outperform S&P 500 in 2024. A Reddit comment which got a lot of upvotes and appreciation in a recent discussion thread said Google seems “unloved” and ever since ChatGPT came out Alphabet Inc (NASDAQ:GOOGL) has “woken” up to the new challenges.

“I think Gemini Ultra will be great, YT Premium and Youtube TV are growing very well. Cloud will continue to do well and Search will do well especially as they are incorporating generative AI in it, rates are expected to come down, advertisement spend will go up, especially with a big political year coming up,” the comment read.

Ensemble Capital Management stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its fourth quarter 2023 investor letter:

Alphabet Inc. (NASDAQ:GOOG) (8.52% weight in the Fund): Google’s earnings report in October showed its core advertising business accelerating to double digit growth as the digital advertising recession of 2022 and early 2023 fades away. However, the company’s Cloud division, which is expected to generate growth from selling access to artificial intelligence services, saw its growth rate slow modestly. Juxtaposed with Microsoft’s Cloud business seeing growth pick up slightly, investors sold off Google’s stock on the report. While the stock recovered to new highs by the end of the year, the earnings report set back caused the stock to trail behind the S&P 500 with a gain of 6.8% for the quarter.”