5 Best Socially Responsible Stocks to Buy According to Analysts

2. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 209

Analyst Price Target: $130 

Alphabet Inc. (NASDAQ:GOOG) is famous for investing heavily into the ESG space and environment-related projects. Last year Alphabet Inc. (NASDAQ:GOOG) revaled its plans to invest $5.75 billion in ESG-related initiatives.

A total of 209 hedge funds tracked by Insider Monkey were long Alphabet Inc. (NASDAQ:GOOG) as of the end of the fourth quarter of 2022. The biggest hedge fund stakeholder of Alphabet Inc. (NASDAQ:GOOG) is TCI Fund Management of Chris Hohn which owns a $5 billion stake in the company.

Polen Focus Growth Strategy made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q1 2023 investor letter:

“One area we are watching regarding Alphabet Inc. (NASDAQ:GOOG) and Adobe is AI systems and their capabilities, including generative AI. Interestingly, both Adobe and Alphabet could see benefits or threats from the emergence of generative AI and large language models (LLMs). Both companies already use generative AI to the benefit of their users in anticipating how content creators edit their work (Adobe) and in how search results are anticipated and generated (Google). At the same time, breakthrough technologies like AI can open the door to additional competition and/or impact a company’s profitability levels. We now see AI systems others are developing, including LLMs and generative AI offerings, that could be more competitive in the future. While we think it remains early days for ChatGPT and the capabilities of these types of LLMs and generative AI programs like DALL-E, the technology seems to be progressing at a fast rate and will at least require a strong response from incumbents.

As of now, we believe Alphabet and Adobe are leaders in their own right in these areas and have a clear path to improving their existing offerings with AI advancements, which would allow them to be net beneficiaries of AI. There are also significant barriers to building leading AI offerings in these areas. As a result, our position sizes in Adobe and Alphabet remain sizeable. For Adobe, the status of its pending $20 billion-plus Figma acquisition is also uncertain. There is a good chance, in our view, that it will be blocked by regulators, which would mean the future opportunity to expand its offerings to the developer community (beyond designers) may not occur.”