5 Best Stocks To Buy For Grandchildren

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 214

Alphabet Inc. (NASDAQ:GOOGL) is a California-based tech holding conglomerate that operates through various subsidiaries, including Google, Waymo, Verily, and more.

37 Wall Street analysts covered Alphabet Inc. (NASDAQ:GOOGL) in the last three months, and 29 maintained a Buy rating on the stock. The average analyst price target of the company stood at $164.59, representing an upside of 20.68% as of the February 28 market close.

In the fourth quarter, hedge fund sentiment was positive toward Alphabet Inc. (NASDAQ:GOOGL), as 214 hedge funds held a stake in the stock at a combined value of $28.8 billion.

Tsai Capital Corporation mentioned Alphabet Inc. (NASDAQ:GOOGL) in its fourth quarter 2023 investor letter. Here is what it said:

“Alphabet Inc. (NASDAQ:GOOG) ($140.93 – up 58.8% for the year. Recent high $143.95) Alphabet, led by Sundar Pichai, has a near monopolistic position in online search, with more than 90% of the global market and greater than 80% of the U.S. market. The company also owns YouTube, which it purchased in 2006, and is now the second most popular website globally, followed by Google Search. While there are valid concerns about disruption from Artificial Intelligence (AI) and large language models (LLM), and competition for YouTube, we believe the economic moats for both businesses remain intact. We also think the Google ecosystem, which benefits from strong network effects, will drive advertising revenue at a high single-digit rate for at least the next five years. Alphabet also owns one of the three major cloud companies (Google Cloud Platform) and has a number of private businesses that, while not profitable today, have the potential to become more valuable to shareholders over time. The company’s balance sheet is strong, with approximately $106 billion of net cash ($8.48/share), and free cash flow conversion remains excellent.”