7 Best Large-Cap Stocks to Buy in 2024 According to Billionaire Dan Loeb

2. Alphabet Inc. Class C (NASDAQ:GOOG)

Billionaire Dan Loeb Q1’2024 Stake Value: $452,790,000

Alphabet Inc. Class C (NASDAQ:GOOG) was a new stock pick of billionaire Dan Loeb in the first quarter, with Third Point adding three million shares of Alphabet Inc. Class C (NASDAQ:GOOG) in its portfolio, worth $453 million. With about 93% share in the global search market, Alphabet Inc. Class C (NASDAQ:GOOG) remains the leader in the online advertisement market, and it’s launching all engines when it comes to AI transformation.  Analysts expect Alphabet Inc. Class C (NASDAQ:GOOG) revenue to growth 18.16% annually over the next five years. According to data from Yahoo Finance, Alphabet Inc. Class C’s (NASDAQ:GOOG) 2025 earnings estimate is $7.91. Based on today’s price of $177, its forward P/E ratio comes out to be 22.42, which is still attractive when compared to competitors like MSFT, AMZN and NVDA. Alphabet Inc. Class C (NASDAQ:GOOG) is also continuing to enjoy strong moat with YouTube. Its Cloud business is also growing. In the first quarter of 2024, Alphabet Inc. Class C’s (NASDAQ:GOOG) Cloud revenue jumped 28.5% year over year.

Of the 919 hedge funds tracked by Insider Monkey, 222 hedge funds tracked by Insider Monkey reported owning stakes in Alphabet Inc. Class C (NASDAQ:GOOG).

Baron Fifth Avenue Growth Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its first quarter 2024 investor letter:

“During the quarter, we initiated a position in Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, the world’s largest search and online advertising company. Alphabet has over 90% market share in its core Google search business, it owns the world’s leading video platform, YouTube (which has over 2 billion users), a competitive cloud service provider, Google Cloud, a leading ad network, and optionality in a number of smaller subsidiaries like the autonomous vehicle company, Waymo.

Google’s core search business continues to grow at a solid clip, and we believe it could structurally earn much higher margins than it does today as the company increases operating efficiency. Google Cloud should also continue growing in the healthy double digits for years to come given the relatively early stage of cloud adoption with $597 billion total cloud spending14 in 2023 out of worldwide IT spending of $4.7 trillion15, or around 13%. Additionally, YouTube has a long runway for growth, driven by the growing adoption of connected TV and the shift of advertising dollars from linear TV…” (Click here to read the full text)