5 Best Rebound Stocks To Buy Now

3. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 191

YTD Price Change: -37.6%

Alphabet Inc. (NASDAQ:GOOGL) is a Mountain View, California-based diversified technology company. The company is also considered one of the best rebound stocks to invest in.

Alphabet Inc. (NASDAQ:GOOGL) stock has come under pressure after YouTube advertising revenue fell by 2% YoY to $7.07 billion and missed the Street’s forecast of $7.42 billion during Q3 2022. This was the first instance when YouTube’s advertising revenue fell on a year-over-year (YoY) basis. However, Brad Erickson at RBC Capital believes that the long-term position of Alphabet Inc. (NASDAQ:GOOGL) remains strong in online advertisement, and the company could return to see strong earnings growth in 2023. Before the rebound, investors could face a few quarters of uncertainty due to the macroeconomic environment and tough comparables. The analyst gave Alphabet Inc. (NASDAQ:GOOGL) stock an Outperform rating with a target price of $130 in an update issued to investors on October 26.

Here’s what Bronte Capital said about Alphabet Inc. (NASDAQ:GOOGL) in its Q3 2022 investor letter:

Consensus longs—those stocks widely held and admired by fund managers—have recently underperformed the market. Consensus shorts have been bad shorts. We have over 500 shorts, of which a few are consensus, and we have noticed this effect. But we also own what we think is (alas) the most consensus long in this market: Alphabet Inc. (NASDAQ:GOOG). We find it hard to find any strong reason not to own it. Internet advertising is going from strength to strength and Google’s place in the market is mostly improving. Some of the other bets such as cloud services are beginning to pay off, and finally the CEO is expressing discipline on costs. (Per the consensus, the biggest problem with Google has been a lack of discipline on costs. Every time we look there are another 20 thousand employees.) Being a consensus long, it is down hard. We did say consensus longs are not going well…” (Click here to read the full text)

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