5 Tech Stocks to Buy Before Market Rally Begins

2. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 160 

Alphabet Inc. (NASDAQ:GOOG) is a diversified technology company. On August 10, news agency Reuters reported that Google Fiber, the internet services platform of the tech giant Google, was planning to expand into five new states across the United States, the biggest expansion push in several years. These new states include Arizona, Colorado, Idaho, Nebraska, and Nevada. The firm has made the choice to expand in these new territories based on data about speed lags in these regions. 

On August 3, Tigress Financial analyst Ivan Feinseth maintained a Strong Buy rating on Alphabet Inc. (NASDAQ:GOOG) stock and raised the price target to $186 from $183, noting the resilience of the core cloud and search business of the firm despite misses on earnings. 

Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG), with 2.3 million shares worth more than $6.6 billion. 

In its Q2 2022 investor letter, Wedgewood Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:

“Alphabet Inc. (NASDAQ:GOOG) 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.”