5 Best Stocks To Buy According to Barry Ritholtz and Josh Brown

3. Alphabet Inc. (NASDAQ: GOOGL)

Barry Ritholtz and Josh Brown’s Stake Value: $3,911,000
Percentage of Barry Ritholtz and Josh Brown’s 13F Portfolio: 0.33%
Number of Hedge Fund Holders: 185

Alphabet Inc. (NASDAQ: GOOGL) is one of the best stocks to buy, based on the portfolio of Barry Ritholtz and Josh Brown.

Alphabet Inc. (NASDAQ: GOOGL)’s Google is also in the process of expanding access to its mobile wallet with entry into the global market following new partnerships with Wise and The Western Union Company (NYSE: WU). 

Alphabet Inc. (NASDAQ: GOOGL)’s Google’s total revenue in Q1 2021 amounted to $55.3 billion, mainly boosted by an increased online activity and an increase in advertising activities. The company’s cloud services have also seen significant growth contributing $4.0 billion to the company’s revenue basket. China Renascence recently upgraded the company’s stock from “Hold” to “Buy,” and has set a price target of $3,000.

Polen Global Growth Fund, in its Q1 2021 investor letter, mentioned Alphabet Inc. Here is what the fund said:

“For our top contributors, each generated strong returns for different, but fundamentally based reasons, in our opinion. Alphabet saw renewed strength recently as advertisers generally resumed spending after a short pause during the pandemic.

Alphabet experienced some challenging quarters in 2020 as many companies paused their advertising spend. But, the business bounced back recently, spurring a strong recovery in the company’s share price. Even during such a challenging period, the company still compounded revenue at 14% in constant currency for 2020.

This is partly due to Alphabet’s multiple growth engines. For example, while its search business was negative one quarter and only grew by 6% during another, YouTube ads and Google Cloud Platform (GCP) grew at over 30% and 46% during the quarter, respectively. YouTube and GCP combined now contribute over 50% of the company’s growth, which we believe is a testament to a strong culture of innovation, a long-term mindset, and prudent capital allocation. With search bouncing back this most recent quarter–growing 17% –we believe that Alphabet continues to be well-positioned to durably compound earnings at or above 15% for many years to come. It remains one of our largest positions.”