5 Best Stocks to Buy According to Billionaire David Abrams

3. Alphabet Inc. (NASDAQ:GOOGL)

Abrams Capital Management’s Stake: $600 Million

Alphabet Inc. (NASDAQ:GOOGL) has featured in the 13F portfolio of Abrams Capital Management since the second quarter of 2018. Back then, the position comprised nearly 2.5 million shares. In the first quarter of 2020, the fund improved this by 21%, increasing the number of shares owned to nearly 3 million. No major change was made to this stake until the end of 2022, when the fund reduced the position by close to 20%. The stake was further trimmed by 11% at the beginning of 2024. Filings for the fourth quarter of 2025 show that the fund has reduced this position by another 10%. This brings the total number of shares owned by the fund to around 1.9 million.

Alphabet Inc. (NASDAQ:GOOGL) features in the stock portfolios of many elite hedge funds. The company is an AI powerhouse. The growth in Google Cloud is also an attractive catalyst. In Q4 2025, Google Cloud revenue surged 48%, reaching $17.7 billion, outperforming Microsoft Azure’s growth for the first time in years. Institutional investors are piling in because Google entered 2026 with a massive $240 billion backlog in cloud contracts, providing highly predictable, high-margin future earnings. Fears about AI killing Google search have also subsided, as the rollout of AI Overviews and the new AI Mode actually increasing search queries, particularly high-value commercial ones.