10 Best Stocks to Buy According to Billionaire Seth Klarman

2. Alphabet Inc. (NASDAQ:GOOGL)

Baupost Group’s Stake Value: $452,550,000

Number of Hedge Fund Holders: 243

Alphabet Inc. (NASDAQ:GOOGL) is one of the best stocks to buy according to Seth Klarman. As of December 12, the average price target for GOOGL suggests an upside of 7%; however, the Street high indicates an upside of 40%. As of the third quarter of 2025, billionaire Seth Klarman holds 1.85 million shares of Alphabet valued at $452.5 million.

On December 5, The Fly reported that Truist analyst Youssef Squali maintained a Buy rating on Alphabet and increased the price target from $320 to $350. The analyst informed investors that this holiday season would be a record time for American e-commerce and ad spend, because consumer spending remains robust, driven by strong employment numbers and targeted AI-based advertising. Moreover, third-party data points to a strong early kickoff to holiday spending this quarter. Truist mentioned that the higher price target is thus attributed to larger ad revenues, ongoing e-commerce trends for the holidays, and, to a limited degree, growth in future revenue assumptions for Other Bets as Waymo accelerates its entry into more cities.

Separately, Alphabet delivered a record third quarter, with Q3 results showing consolidated revenue of $102.3 billion, up 16% year over year. The company achieved double-digit growth across every primary business segment. Sundar Pichai, the CEO of Alphabet and Google, commented:

“Our full stack approach to AI is delivering strong momentum and we’re shipping at speed, including the global rollout of AI Overviews and AI Mode in Search in record time. In addition to topping leaderboards, our first party models, like Gemini, now process 7 billion tokens per minute, via direct API use by our customers. The Gemini App now has over 650 million monthly active users. We continue to drive strong growth in new businesses. Google Cloud accelerated, ending the quarter with $155 billion in backlog. And we have over 300 million paid subscriptions led by Google One and YouTube Premium.”