99% of Billionaire Abrams’ Portfolio is in These 11 Stocks

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5. Alphabet Inc. (NASDAQ:GOOGL)

Abrams Capital Management’s Q3 2024 Investment: $342.84 Million

Percentage of Abrams Capital Management’s Portfolio: 5.5%

Number of Hedge Fund Holders: 202

Alphabet Inc. (NASDAQ:GOOGL) is Abrams Capital Management’s largest holding in the communication services sector. The company generates most of its revenue from Google’s search engine advertising network and YouTube. Similarly, the stock is up by about 19.24% year to date as investors react to the company’s robust digital advertising business.

Most of Alphabet Inc.’s (NASDAQ:GOOGL) revenue comes from advertising. This segment benefits from increased ad spending in a strong US and global economy. Besides advertising, Alphabet’s revenue is also growing due to more people using cloud computing solutions.

Alphabet Inc. (NASDAQ:GOOGL) is using artificial intelligence (AI) to improve its search business and boost demand for its cloud services. Alphabet has spent $49.3 billion on expanding its AI infrastructure, including servers and data centers.

These investments helped Alphabet achieve strong Q3 financial results on October 29, 2024. Revenue increased by 15% compared to last year, and earnings per share (EPS) rose by 37% from $1.55 to $2.12. The operating margin also grew from 28% last year to 32% this year, contributing significantly to this gain.

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