Top 5 Stock Picks of Robert B. Gillam’s McKinley Capital Management

04. Alphabet Inc. (NASDAQ:GOOG) 

McKinley Capital Management’s Stake Value: $21.811 million

Percentage of McKinley Capital Management’s 13F Portfolio: 2.84%

Number of Hedge Fund Holders as of Q1 2022: 365

For Q2 2022, Alphabet Inc. (NASDAQ:GOOG) had EPS valued at $1.21, missing estimates by $0.08, and reported actual revenue valued at $69.69 billion, missing estimates by $111.87 million. The stake of McKinley Capital in Alphabet Inc. (NASDAQ:GOOG) declined by 9% during the second quarter.

In its Q2 2022 investor letter, Wedgewood Partners mentioned Alphabet Inc. (NASDAQ:GOOG) and explained its insights for the company. Here is what the fund said:

“Alphabet grew its core search revenues +24% on a +30% year-ago comparison. Despite this stellar top-line performance, shares sold off as the market began to discount fears of a recession. However, the stock has outperformed relative to other holdings as core Google Search has been less affected by disruptions related to Apple’s privacy initiatives. Alphabet’s Cloud segment is generating revenue at a $24 billion run rate but is still running at a loss. We think this business can generate much better margins at some point. In the meantime, the Company has 4% to 5% of shares authorized for repurchase which is an attractive use of capital as the stock trades for about just 18X 2023 consensus estimates.”