Top 5 Stock Picks of Jack Ripsteen’s Potrero Capital Research

2. Alphabet Inc. (NASDAQ:GOOG)

Stake Value of Potrero Capital Research: $24,389,000

Percentage of Potrero Capital’s 13F Portfolio: 5.85%

Number of Hedge Fund Holders: 155

Alphabet Inc. (NASDAQ:GOOG) is a tech conglomerate holding company, with subsidiaries like Google, Calico, Sidewalk Labs, Verily, and DeepMind, among others.

Potrero Capital Research owns 9,731 shares in Alphabet Inc. (NASDAQ:GOOG), worth $24.38 million, making up 5.85% of the firm’s Q2 portfolio. Overall, 155 hedge funds owned stakes in the tech conglomerate at the end of June. 

The third quarter earnings were reported on October 26 by Alphabet Inc. (NASDAQ:GOOG). The Q3 EPS came in at $27.99, exceeding analysts’ expectations by $4.75. Alphabet Inc. (NASDAQ:GOOG)’s Q3 revenue also beat estimates by $1.83 billion at $65.12 billion. 

Morgan Stanley analyst Brian Novak on November 2 raised Alphabet Inc. (NASDAQ:GOOG)’s price target from $3,000 to $3,200 with an Overweight rating. He stated that Q3 performance exceeded expectations, and the free cash flow at Alphabet Inc. (NASDAQ:GOOG) will be sufficient even if the company continues to make expensive investments. 

Here is what Alger has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 investor letter:

“Alphabet Inc. was among the top contributors to performance during the third quarter. Alphabet is a leading internet search provider and is a beneficiary in the share shift of advertising dollars from traditional mediums like television, radio and newspapers to digital platforms. The company is a leader in implementing Al, autonomous vehicles and cloud computing it and owns the highly trafficked YouTube property. Alphabet contributed to performance due to a strong quarterly report highlighted by revenue growth that beat consensus expectations across segments. The company’s core search revenues have increased 10% over the past two years, with cloud computing increasing 8%. Results from YouTube also exceeded expectations. When discussing quarterly results, Alphabet management said retail, entertainment and travel were end markets that were particularly strong. The fixed cost structure of Alphabet’s search service resulted in profitability resulting from the increase in revenues being better than expected.”