Starter Stock Portfolio: 12 Safe Stocks to Buy

3. Alphabet Inc. (NASDAQ:GOOGL)

No. of Hedge Fund Holders: 234

Alphabet Inc. (NASDAQ:GOOGL) is a pioneer of the tech sector, a multinational conglomerate delivering a wide array of digital products and platforms across global markets. Its portfolio consists of Google Services, Google Cloud, and Other Bets.

The company boasts a profile that few can rival. In terms of financials, Alphabet Inc. (NASDAQ:GOOGL)’s earnings report for the final quarter of 2024 shows a revenue of $96.47 billion, up 11.77% YoY, while EPS was $2.15. Operating income was reported at $31 billion and net income of $26.5 billion, up 28% and 31%, respectively. The company’s cash reserves are at $95 billion. In terms of business model, the company’s portfolio touches almost every person with a smartphone on the planet. The game changer is its investments in AI. The company’s Chief Financial Officer spoke on investment in AI infrastructure during the earnings call, stating:

“As we mentioned on the Q3 call, as we expand our AI efforts, we expect to increase our investments in capital expenditure for technical infrastructure, primarily for servers, followed by data centers and networking. We expect to invest approximately $75 billion in CapEx in 2025.”

Alphabet Inc.’s (NASDAQ:GOOGL) DeepMind is a leader in AI, Waymo SW is the leading self-driving vehicle company in the market, and its YouTube and Android smartphones dominate their respective markets, which makes it one of the best beginner stocks to monitor.