Goldman Sachs Tech Stocks: 10 Stocks to Buy

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of hedge fund owners – 202

Operating within the interactive media and services industry, Alphabet Inc. (NASDAQ:GOOGL) has established a dominant position in global digital advertising and cloud computing markets. Its core products and services include Google Search, YouTube, the Android operating system, and Google Cloud services.

In the fourth quarter of 2024, Alphabet Inc. (NASDAQ:GOOGL) reported revenues of $96.5 billion, marking a 12% year-over-year increase, reflecting robust momentum across its business segments. The Google Services segment, encompassing Search, YouTube, and Android, contributed $84.1 billion, a 10% rise from the previous year. Google Cloud also demonstrated significant growth, reinforcing Alphabet’s competitive stance in the cloud computing sector.

In March 2025, Alphabet Inc. (NASDAQ:GOOGL) agreed to acquire cybersecurity firm Wiz for $32 billion in cash, aiming to bolster its cloud computing business’s security measures. This acquisition, the largest in Alphabet’s history, underscores the company’s commitment to enhancing its cybersecurity capabilities. However, the high valuation has raised investor concerns regarding capital discipline, leading to a 2.8% drop in Alphabet’s shares to $161.91 following the announcement.

Alphabet Inc. (NASDAQ:GOOGL) has seen over 20% decline in 2025 as of March 20, driven by rising AI investments and antitrust challenges. Despite near-term pressures, forecasts indicate a potential 100% surge in the next five years, fueled by strength in digital advertising. Google’s search ad revenue is expected to grow 10% to $216.5 billion in 2025. Q4 2024 earnings of $8.04 per share beat estimates, with revenue up 13.89% YoY. Currently, GOOGL trades near its 52-week low, but 79% of 68 analysts rate it a Buy. While some analysts remain cautious, Alphabet’s AI and cloud expansion strengthens its long-term growth prospects.