7 Best Big Company Stocks to Buy Now

3) Alphabet Inc. (NASDAQ:GOOGL)

Number of hedge fund holders: 216

Alphabet Inc. (NASDAQ:GOOGL) is a holding company and the internet media giant, Google, is its wholly-owned subsidiary.

The company enjoys durable competitive advantages associated with intangible assets and its network effect. Alphabet Inc. (NASDAQ:GOOGL)’s technological expertise associated with algorithms and AI, together with access to and accumulation of valuable data for advertisers should act as tailwinds. Next, its search engine is well-regarded and appreciated across the industry players. YouTube is expected to benefit from robust reach and usage frequency. Its video-only content format continues to be appealing to brand advertisers, which should support Alphabet Inc. (NASDAQ:GOOGL) over the next decade.

Wall Street analysts believe that the market underappreciates Alphabet Inc. (NASDAQ:GOOGL)’s exposure to AI, given the fact that its Gemini model continues to be integrated into search results, YouTube advertising, and its cloud offerings. As we all know, cloud players are expected to be the AI winners over the long-term, and Alphabet Inc. (NASDAQ:GOOGL) is well-positioned to take advantage.

Alphabet Inc. (NASDAQ:GOOGL) released its 2Q 2024 results, with the performance supported by ongoing strength in Search and momentum in Cloud. The company’s longstanding infrastructure leadership, coupled with in-house research teams, should help the tech giant to pursue opportunities ahead.

Analysts at TD Cowen initiated coverage on the shares of Alphabet Inc. (NASDAQ:GOOGL), increasing its price target from $200.00 to $220.00. They gave a “Buy” rating on 10^th July.

Patient Capital Management, a value investing firm, released its second quarter 2024 investor letter. Here is what the fund said:

“Alphabet Inc. (NASDAQ:GOOGL) was a top contributor in the second quarter, finally catching up to its peers in the Magnificent 7. The company gained 20.8% in the period following strong first quarter earnings, a new $70B repurchase program (3% of shares outstanding) and the initiation of a cash dividend ($0.20 per share; 0.42% yield). We continue to believe the market underappreciates Google’s exposure to AI with its Gemini model being integrated into search results, YouTube advertising and its cloud offering. We continue to think that the cloud players will be the AI winners in the long-term, with Google being well positioned to take advantage. While the company trades at 24x 2024 earnings, if you remove the money-losing and under-earning businesses, you realize that you are paying below a market multiple for the core Google business. We do not believe there are many other AI winners trading at such an attractive multiple.”