5 Best Tech Stocks to Buy Now According to Totem Point Management

In this article, we discuss the 5 best tech stocks to buy now according to Totem Point Management. If you want to read our comprehensive analysis of  Totem Point Management’s history, investment philosophy, and hedge fund performance, go directly to 10 Best Tech Stocks to Buy Now According to Totem Point Management.

5. Alphabet Inc. (NASDAQ:GOOG)

Totem Point Management’s Stake Value: $11,967,000

Percentage of Totem Point Management’s 13F Portfolio: 7.79%

Number of Hedge Fund Holders: 156

The class C shares of Alphabet Inc. (NASDAQ:GOOG) are first up on the second part of our list of Totem Point Management’s top tech stock picks. The fund owned 4,490 of them after trimming its position by 16% during the third quarter. Alphabet is the most popular stock among the hedge funds tracked by Insider Monkey, with 356 funds owning either one or both of the tech giant’s class of shares.

It’s hard to imagine Alphabet Inc. (NASDAQ:GOOG) being considered under-appreciated given its aforementioned popularity among top money managers, but that’s precisely what Weitz Investment Management called the company in its Q4 2021 investor letter. The fund noted that both Alphabet and Meta Platforms, Inc. (NASDAQ: FB) have had their valuations impacted due to regulatory scrutiny. While the fund considers the threat of punitive action against the companies to be a very real one, it can’t foresee any action taken against them to be so damaging as to characterize their five-year outlooks as anything but well above-average.

Alphabet Inc. (NASDAQ:GOOG) beat revenue expectations in Q4 by a healthy $3 billion, growing sales by a hefty 32% year-over-year to $75.3 billion, which resulted from strong online consumer activity and advertiser spending. Google Cloud also continued to outperform the company’s top-line growth, growing revenue by 45% during the quarter to $4.5 billion.

Weitz Investment Management, an investment management firm, published its “Value Fund” fourth quarter 2021 investor letter and mentioned Alphabet Inc. (NASDAQ:GOOG). Here‘s what the fund said:

“A couple of other platform companies deserve a mention as well. Meta Platforms and Alphabet have both been under regulatory scrutiny that has affected their valuations. The threats of punitive action are real, but we have tried to be imaginative about how onerous any fines, rule changes or forced divestitures might be, and we believe that the fiveyear outlook for each is well above average under almost any scenario. So, we include these two in the list of the under-appreciated.”