2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 216
Analysts Upside Potential: 23.72%
Alphabet Inc. (NASDAQ:GOOGL) the parent company of Google, operates through various segments, including Google Services, Google Cloud, and Other Bets. Within these segments, Alphabet provides a range of services and products, with the Google Meet Platform focusing on video conferencing.
Google Meet is integrated within Google Workspace offerings and ensures seamless integration with other Google applications such as Calendar and Gmail, allowing users to join meetings directly from calendar events or email invites. It also features live captions, breakout rooms, meeting recordings, and AI real-time note-taking.
Alphabet Inc. (NASDAQ:GOOGL) released its third-quarter results for fiscal 2024 on October 29. The consolidated revenue for the quarter increased 15% year-over-year to $88.3 billion. Google Cloud segment which deals with Google Workspace was the main contributor to revenue growth. Revenue for the segment grew 35% year-over-year mainly led by AI infrastructure and generative AI solutions within the Cloud Platform services.
The net income of the company was also notable as it improved by 34% year-over-year. CEO Sundar Pichai mentioned that their long-term focus and investments in AI are paying off as it is helping the company drive more product adoption by existing customers. Alphabet Inc. (NASDAQ:GOOGL) is one of the best video conferencing stocks to buy according to analysts.
Cooper Investors Global Equities Fund (Hedged) stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q3 2024 investor letter:
“Alphabet Inc.’s (NASDAQ:GOOGL) operating performance remains strong with sales growing 14% in the most recent quarter. Highlights included the ongoing secular growth of digital advertising driving Google search (+14%), YouTube’s continued success as a leading content platform (+13%) and the performance of the Cloud business (+29%). In conjunction with this strong sales momentum, Alphabet’s increased focus on expenses is delivering margin expansion such that Operating Income grew 26%.
Despite this operational momentum, Alphabet’s share price declined 11% in the quarter as a federal judge ruled against the company in its case with the US Department of Justice. The case pertains to Google’s monopolisation of both the search and digital advertising markets which is claimed to limit competition and innovation and/or in
Potential remedies include prohibiting exclusive agreements which make Google the default search engine on Apple or Samsung devices, forcing Alphabet to share its advertising technology with rivals, or in the extreme breaking the company apart. The timing and outcomes remain somewhat uncertain however we remain of the belief that at the fundamental level Alphabet’s products are best of breed across several verticals and are benefitting from secular industry trends and that these factors will be the ultimate determinant of long-term shareholder returns.”
