Long-Term Stock Portfolio: 5 Tech Stocks to Consider

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 153

Alphabet Inc. (NASDAQ:GOOG) is trading at an attractive valuation currently. As of October 3, the stock has a trailing twelve-month PE ratio of 17.91 and has free cash flows of more than $65 billion. Alphabet Inc. (NASDAQ:GOOG) has also demonstrated to maintain its profit margins and has a trailing twelve-month operating margin of 29.65%. Alphabet Inc. (NASDAQ:GOOG) is among the best tech stocks to consider for the long term.

Alphabet Inc. (NASDAQ:GOOG) is a ‘Strong Buy’ stock on Wall Street. Over the past three months, Alphabet Inc. (NASDAQ:GOOG) has received 10 Buy ratings from Wall Street analysts. On August 3, Tigress Financial analyst Ivan Feinseth reiterated his Strong Buy rating on Alphabet Inc. (NASDAQ:GOOG) and raised his price target on the stock to $186 from $183.

At the end of the second quarter of 2022, 153 hedge funds held stakes in Alphabet Inc. (NASDAQ:GOOG). The total value of these stakes amounted to $22.29 billion. As of June 30, TCI Fund Management owns more than 2.4 million shares of Alphabet Inc. (NASDAQ:GOOG) and is the most prominent investor in the company.

Here is what Lakehouse Capital had to say about Alphabet Inc. (NASDAQ:GOOG) in its second-quarter 2022 investor letter:

“Alphabet Inc. (NASDAQ:GOOG) reported another strong quarterly result despite the tough macroeconomic conditions. Revenue increased by 13% as Search proved resilient, primarily led by strength in the travel and retail verticals. YouTube advertising growth was lighter and moderated due to a tough comparison period and a general softening in brand advertising spend. That said, YouTube’s user engagement and time spent still continues to grow which bodes well for future monetisation opportunities. Google Cloud outpaced the company’s overall growth with revenue increasing by 36% and while it has yet to show any signs of profitability, we remain supportive of Alphabet continuing to reinvest in its cloud business given the size of the market opportunity ahead. On the cost front, the company added another 10,000 employees during the quarter, but notably, the CFO mentioned that hiring will likely slow down over the next twelve months as the company focuses on greater operating efficiency. Overall, we’re pleased with how the company has performed and are confident that management will be able to control costs, if or when the economic environment becomes more challenging.”