5 Best Reddit Stocks To Invest In

2. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 191

Alphabet Inc. (NASDAQ:GOOGL) is a Mountain View, California-based diversified technology conglomerate that has notable brands like Google and YouTube under its umbrella.

According to StatCounter, 91% of global searches are done through Google. Meanwhile, on the cloud front, the company is notable in the industry right after Amazon.com, Inc. (NASDAQ:AMZN) through Amazon Web Services (AWS) and Microsoft Corporation (NASDAQ:MSFT) through Azure.

Furthermore, despite having a strong growth outlook, Alphabet Inc. (NASDAQ:GOOGL) stock is trading at a P/E multiple of around 20x as opposed to the S&P 500 Index’s P/E of 22x. The company is also a behemoth in generating free cash flows and has negligent debts on its books. Alphabet Inc.’s (NASDAQ:GOOGL) strong fundamentals support its inclusion in our list of 12 best Reddit stocks to invest in.

Farrer Wealth Advisors shared its stance on Alphabet Inc. (NASDAQ:GOOGL) in its Q1 2022 investor letter. Here’s what the firm said:

Alphabet: We won’t waste much time trying to explain to our clients why Alphabet is such a phenomenal business, we believe that is quite self-evident. The better explanation is why we never bought Alphabet before. The reason was a personal bias we held based on three beliefs (which we now believe to be incorrect)

Growth in YouTube would stall as the increased ad-load would turn-off viewers (the double ad-load at the beginning of videos for example). Consumers will focus on discovery rather than search to purchase new items. For example – using Instagram/TikTok to decide what new clothes to buy instead of ‘googling’ for clothes. Other Bets: In general, we felt that capital spent on “Other Bets” has been a bit wasteful with the segment earning just around $3.1bn in revenue versus nearly $21bn in operating losses over the last five years…” (Click here to see the full text)

Overall, 191 hedge funds held a stake in Alphabet Inc. (NASDAQ:GOOGL) as of Q2 2022.