5 Strong Buy Stocks to Invest in Now According to Reddit

1. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 160

Redditors believe that Alphabet Inc. (NASDAQ:GOOG) is a steal at its current price, which is about 20% down year to date as of August 1. The retail investors think that Alphabet Inc. (NASDAQ:GOOG) is an extremely well diversified company and it maintains its core positions well, with 10 different products and services that have more than a billion active users. This is a market position that no competitors have yet achieved. The Reddit community observed that Google Workspace is trending now among millennials and Gen Z alike, and the latter do not actively use Microsoft Office at all. 

On July 27, JPMorgan analyst Doug Anmuth said Alphabet Inc. (NASDAQ:GOOG) reported “solid results in an increasingly uncertain macro environment”. Despite the overall robustness in Q2, Alphabet Inc. (NASDAQ:GOOG)’s management used the term “uncertain/uncertainty” 13 times during its conference call to reflect the global macro outlook, the analyst told investors. However, the guidance for the second half of 2022 “could have been worse”, reiterated the analyst, while keeping an Overweight rating on the shares with a $140 price target.

According to Insider Monkey’s Q1 data, 160 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), up from 158 funds in the preceding quarter. Chris Hohn’s TCI Fund Management held a prominent stake in the company, comprising 2.3 million shares worth $6.6 billion. 

Here is what Wedgewood Partners has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q2 2022 investor letter:

“Alphabet grew its core search revenues +24% on a +30% year-ago comparison. Despite this stellar top-line performance, shares sold off as the market began to discount fears of a recession. However, the stock has outperformed relative to other holdings as core Google Search has been less affected by disruptions related to Apple’s privacy initiatives. Alphabet’s Cloud segment is generating revenue at a $24 billion run rate but is still running at a loss. We think this business can generate much better margins at some point. In the meantime, the Company has 4% to 5% of shares authorized for repurchase which is an attractive use of capital as the stock trades for about just 18X 2023 consensus estimates.”

You can also take a look at 10 Buy-The-Dip Restaurant Stocks to Invest In Now and 10 Best Stocks For Inflation According to Redditors.

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