Jim Cramer’s 5 Comeback Stocks

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 156

Jim Cramer listed Alphabet Inc. (NASDAQ:GOOG) as one of the top tech stocks which can rebound soon. On December 20, Alphabet Inc. (NASDAQ:GOOG)’s YouTube is said to be in advanced talks with the NFL to gain the rights to NFL Sunday Ticket. Alphabet discussed paying $2.5 billion per year for the package of Sunday NFL games, up from the current $1.5 billion paid by DirecTV. This will prove to be a positive catalyst for Alphabet Inc. (NASDAQ:GOOG) stock. 

On December 21, Evercore ISI analyst Mark Mahaney maintained an Outperform rating on Alphabet Inc. (NASDAQ:GOOG) but lowered the price target on the shares to $120 from $130. In the wake of multiple proprietary data points that indicate ongoing weakness in online advertising and cloud computing demand, the analyst has trimmed his 2023 and 2024 revenue estimates by 5% and his 2023 and 2024 operating income estimates by 9%, putting his forecasts “modestly below the Street”. However, he continues to view Alphabet Inc. (NASDAQ:GOOG) as “highly attractive for long-term investors,” calling it a “Dislocated High Quality” stock.

According to Insider Monkey’s Q3 data, Alphabet Inc. (NASDAQ:GOOG) was part of 156 hedge fund portfolios, compared to 153 in the last quarter. Chris Hohn’s TCI Fund Management is the leading position holder in the company, with 52.4 million shares worth over $5 billion. 

Here is what Stewart Asset Management has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2022 investor letter:

“We invest in businesses with strong, resilient earnings growth which are less cyclical. In the pandemic recession of 2020, the aggregate earnings of the portfolios we manage did not decline year-over-year, and in fact grew, albeit modestly. Looking at the Great Recession which began at year-end 2007 and lasted to mid-year 2009 is helpful too. Our four largest current holdings in the portfolio weathered that period well. Alphabet (NASDAQ:GOOG), then called Google, reported earnings that doubled from 2007 to 2010.”