GoodHaven Capital is Optimistic About Alphabet (GOOG)’s Long-term Upside Potential

Investment management company GoodHaven Capital Management released its second-quarter 2022 investor letter. A copy of the same can be downloaded here. At the end of the first half of the year 2022, the fund outperformed the S&P 500 index declining by 3.86% compared to a 8.85% drop for the S&P 500 Index. The fund has been performing well over the last 2 semi-annual fiscal years. You can check the top 5 holdings of the fund to know its best picks in 2022.

GoodHaven Capital Management discussed stocks like Alphabet Inc. (NASDAQ:GOOG) in the second quarter investor letter. Alphabet Inc. (NASDAQ:GOOG) is a multinational technology company headquartered in Mountain View, California. On August 25, 2022, Alphabet Inc. (NASDAQ:GOOG)  stock closed at $117.70 per share. One-month return of Alphabet Inc. (NASDAQ:GOOG)  was 0.91% and its shares lost 18.58% of their value over the last 52 weeks. Alphabet Inc. (NASDAQ:GOOG)  has a market capitalization of $1.529 trillion.

Here is what GoodHaven Capital Management specifically said about Alphabet Inc. (NASDAQ:GOOG):

“Alphabet Inc. (NASDAQ:GOOG) was our top dollar detractor after having been a top gainer in many prior periods. As a top holding in our portfolio, its price movement will often impact overall performance in either direction. Alphabet’s Q1 2022 results were strong, the top line increased by 26% and operating income increased by over 20%. 1 Shares outstanding have begun declining due to stepped-up share repurchases. We’ve owned Alphabet for many years and for almost all of that time have been expecting growth to moderate. We’ve been happily proven wrong so far but that expectation remains. As many companies in the tech/venture capital world retrench and possibly reduce their spending on digital advertising, we would not be surprised to see this negatively impact Alphabet’s growth. At a recent stock price implying a forward P/E of about 14X to 2023 earnings (excluding net cash) we remain optimistic about Alphabet’s long-term upside potential and ability to navigate the regulatory headwinds.”

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Alphabet Inc. (NASDAQ:GOOG) is in 5th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 153 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the first quarter which was 160 in the previous quarter.

We discussed Alphabet Inc. (NASDAQ:GOOG) in another article and shared the top stock picks of Morris Mark’s Asset Management company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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