Leon Cooperman Stock Portfolio: Top 12 Picks

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6. Alphabet Inc. (NASDAQ:GOOGL)

Total Number of Shares Owned: 650,000

Total Value of Shares Owned: $118,397,500

Number of Hedge Fund Investors: 216

In FQ2 2024, Alphabet Inc. (NASDAQ:GOOGL) reported impressive revenue of $84.7 billion, which represents a 14% increase year-over-year, exceeding analyst expectations. Alphabet Inc. (NASDAQ:GOOGL) net income also rose significantly to $23.6 billion, up from $18.3 billion the previous year, while earnings per share (EPS) of $1.89 marked the sixth consecutive quarter of surpassing revenue and earnings forecasts.

A key driver of this success is the performance of Google Cloud, which surpassed $10 billion in revenue for the first time, highlighting the increasing demand for cloud services among enterprise clients. Meanwhile, Google Search continues to be a major revenue source, generating $48.5 billion. Alphabet Inc. (NASDAQ:GOOGL)’s commitment to AI is another significant factor in its bullish case. CEO Sundar Pichai emphasized Alphabet Inc. (NASDAQ:GOOGL)’s ongoing innovations across its AI offerings, positioning it well for future growth in this area, particularly within its cloud services and advertising platforms.

Additionally, YouTube’s advertising revenue reached $8.66 billion, underscoring its crucial role in Alphabet Inc. (NASDAQ:GOOGL)’s overall strategy. Google’s total advertising revenue climbed to $64.6 billion, further solidifying its dominance in the digital advertising space. Given its consistent financial success and strategic investments in AI and cloud technology, Alphabet Inc. (NASDAQ:GOOGL) presents an attractive opportunity for investors looking to capitalize on growth in the tech sector.

Diamond Hill Large Cap Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q2 2024 investor letter:

“Among our top individual contributors in Q2 were Amazon, Texas Instruments and Alphabet Inc. (NASDAQ:GOOGL). Media and technology company Alphabet also continued delivering strong results in its search, YouTube advertising, YouTube subscription and cloud businesses. Shares rose amid an environment that continues favoring mega-cap technology companies.”

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