Billionaire David Tepper’s Top 10 Stock Picks Heading into 2025

6. Alphabet Inc. (NASDAQ:GOOGL)

Appaloosa Management LP’s Stake Value: $314.65 Million

Number of Hedge Fund Holders: 202

Alphabet Inc. (NASDAQ:GOOGL) is an internet content and information giant that offers a range of products, including Google Search, Google Maps, YouTube and Google Cloud. By controlling about 90% of internet searches, the company has succeeded in building a robust digital advertising business.

Alphabet Inc. (NASDAQ:GOOGL) is increasingly investing in artificial intelligence to apply on its search platform. The integration is part of the company’s effort to enhance user experience and engagement levels to draw in more advertising campaigns. Integrated AI features also help advertisers deliver ads to the most relevant audiences, creating better and more effective campaigns.

Investments in AI have been the catalyst behind Alphabet Inc.’s (NASDAQ:GOOGL) advertising business, which achieved an 11% revenue growth in the first nine months of the year. In addition to search and advertising, Alphabet has also emerged as a key player in cloud computing. Google Cloud generated a 35% increase in revenue in the third quarter. In contrast, Amazon Web Services generated a 19% increase in revenue.

Google Cloud is emerging as a key source of revenue and showing strong profitability with an operating margin of 17%. Given its investments in AI, there is cause for optimism regarding Google Cloud maintaining its growth momentum.