An Adverse Ruling by DOJ Dragged Alphabet (GOOG) in Q3

Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. Although there was some volatility, markets contributed to strong year-to-date gains in Q3. US stocks increased by 6%, as measured by the Russell 3000 Index, with small- and mid-cap equities accounting for most gains. This is a significant change. The strategy outperformed the Russell 1000 Index in Q3 and returned 7.84% (net) vs 6.08% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.

Diamond Hill Large Cap Strategy highlighted stocks like Alphabet Inc. (NASDAQ:GOOG) in its Q3 2024 investor letter. Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was -1.05%, and its shares gained 20.66% of their value over the last 52 weeks. On November 22, 2024, Alphabet Inc. (NASDAQ:GOOG) stock closed at $166.57 per share with a market capitalization of $2.027 trillion.

Diamond Hill Large Cap Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q3 2024 investor letter:

“Other bottom individual contributors included Humana and Alphabet Inc. (NASDAQ:GOOG). Shares of media and technology company Alphabet were pressured as the company received an adverse ruling on the antitrust case brought by the US Department of Justice. Simultaneously, competition is stiffening in the search engine and artificial intelligence spaces, creating a more challenging operating environment for Alphabet.”

A laptop and phone open to Google’s services in an everyday setting.

Alphabet Inc. (NASDAQ:GOOG) is in 7th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 160 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the third quarter which was 165 in the previous quarter. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Alphabet Inc. (NASDAQ:GOOG) and shared the list of AI news and ratings investors should not miss. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.