5 Best FAANG Stocks to Buy Now

4. Alphabet Inc. (NASDAQ: GOOGL)

Number of Hedge Fund Holders: 185

Alphabet Inc. (NASDAQ: GOOGL) ranks 4th on the list of the 10 best FAANG stocks to buy now. The California-based tech giant is Google’s parent company. Alphabet Inc. (NASDAQ: GOOGL) provides online advertising and cloud computing services. The company also operates Google Services, which comprises YouTube, Google Maps, Google Play, Chrome, and Search. 

On July 29, Argus Research maintained a Buy rating on Alphabet Inc. (NASDAQ: GOOGL) and increased the firm’s price target to $3,100 per share from the previous $2,800, noting Alphabet Inc.’s strong Q2 results.

Alphabet Inc. (NASDAQ: GOOGL) is among the biggest tech companies that benefit from the continuous demand for cloud computing services due to remote and hybrid work setup. Google Cloud’s revenue in the second quarter grew 54% year over year to $4.63 billion, exceeding analyst consensus of $4.40 billion. Alphabet Inc. (NASDAQ: GOOGL) stock has gained 54% year to date.

The company has a market cap of $1.8 trillion. In the second quarter of 2021, Alphabet Inc. (NASDAQ: GOOGL) reported an EPS of $27.26, exceeding estimates of $19.34. In its second-quarter report, the California-based tech giant recorded a 62% growth in revenue year over year to $61.9 billion, exceeding analyst expectations of $56.16 billion.

By the end of the first quarter of 2021, 185 hedge funds out of the 866 tracked by Insider Monkey held stakes in Alphabet Inc. (NASDAQ: GOOGL), worth roughly $24.6 billion. This is compared to 179 hedge funds in the previous quarter, with stakes worth approximately $21.9 billion.

In its Q2 2021 investor letter, Ensemble Capital mentioned Alphabet Inc. (NASDAQ: GOOG) and discussed its stance on the firm. Here is what the fund said: 

“Google: While Google’s stock was up 31% in 2020, handily beating the S&P 500, it was one of the weaker performing Big Five tech giants. With the company posting blow-out reports in the most recent quarters, the stock has soared 40% this year, making it the best performing of the Big Five this year. In the most recent quarter, the stock rallied 18% in the wake of the company reporting its largest beat of estimated earnings before interest and taxes in over a decade. Amazingly, the company is now reporting revenue more than 50% above the level it was generating two years ago, even though travel-related advertising, which is one of Google’s largest advertising categories, has not yet rebounded.”