These 5 Social Media Stocks Are Getting Hammered

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1. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 205

Alphabet Inc. (NASDAQ:GOOGL) is a Mountain View, California-based diversified technology holding company.

The trillion-dollar company has shed more than 26% of its value since the start of 2022 as its equity investment in notable companies like CrowdStrike Holdings, Inc. (NASDAQ:CRWD), Duolingo, Inc. (NASDAQ:DUOL), and Magenta Therapeutics, Inc. (NASDAQ:MGTA) have taken a significant beating.

Alphabet Inc. (NASDAQ:GOOGL) has online video sharing and social media platform YouTube under its holdings. The tech conglomerate has announced that YouTube TV has surpassed 5 million subscribers and has become the top streaming TV service in the US by surpassing Hulu. Meanwhile, Alphabet Inc.’s (NASDAQ:GOOGL) response to TikTok in the form of YouTube shorts has reached 1.5 billion monthly users.

On July 22, Scott Devitt at Stifel trimmed Alphabet Inc.’s (NASDAQ:GOOGL) target price from $155 to $145. The analyst lowered his advertising revenue estimates to incorporate the impact of lower third-party ad agency estimates.

Alphabet Inc. (NASDAQ:GOOGL) was mentioned in the Q1 2022 investor letter of Farrer Wealth Advisors. Here’s what the firm said:

Alphabet: We won’t waste much time trying to explain to our clients why Alphabet is such a phenomenal business, we believe that is quite self-evident. The better explanation is why we never bought Alphabet before. The reason was a personal bias we held based on three beliefs (which we now believe to be incorrect)

Growth in YouTube would stall as the increased ad-load would turn-off viewers (the double ad-load at the beginning of videos for example). Consumers will focus on discovery rather than search to purchase new items. For example – using Instagram/TikTok to decide what new clothes to buy instead of ‘googling’ for clothes. Other Bets: In general, we felt that capital spent on “Other Bets” has been a bit wasteful with the segment earning just around $3.1bn in revenue versus nearly $21bn in operating losses over the last five years…” (Click here to see the full text)

The number of hedge funds holding a stake in Alphabet Inc. (NASDAQ:GOOGL) declined from 209 in Q4 2021 to 205 in Q1 2022.

You can also take a peek at 10 Buy-The-Dip Restaurant Stocks to Invest In Now and Cathie Wood’s 10 Favorite Stock Picks For The Rest of 2022.

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