5 Blue Chip Stocks to Buy According to Mario Gabelli

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In this article, we discuss the 5 Blue Chip Stocks to Buy According to Mario Gabelli. If you want to read our discussion on Gabelli’s investment philosophy and hedge fund performance, go directly to the 10 Blue Chip Stocks to Buy According to Mario Gabelli.

5. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 160

Mario Gabelli’s Stake Value: $63,624,000

Percentage of Gabelli’s Portfolio: 0.57%

Stock Price as of June 15: $2,228.51

Alphabet Inc. (NASDAQ:GOOG) is a California-based tech conglomerate. The company is the third biggest technology company in terms of revenue and one of the members of the Big Five tech companies.

In a note issued to investors on June 9, Eric Sheridan at Goldman Sachs reiterated a Buy rating on Alphabet Inc. (NASDAQ:GOOG) stock with a target price of $3,000. The analyst sees Alphabet Inc. (NASDAQ:GOOG) as a defensive play in the digital advertisement industry following the rollout of Apple’s app tracking transparency (ATT) feature on April 26. Under this feature, data related to user behavior across applications and mobile websites will not be shared with advertisers, app developers, and ad performance management companies. The analyst sees Alphabet Inc. (NASDAQ:GOOG) as relatively insulated from this development.

Farrer Wealth Advisors mentioned Alphabet Inc. (NASDAQ:GOOG) in its first-quarter 2022 investor letter:

“We won’t waste much time trying to explain to our clients why Alphabet is such a phenomenal business, we believe that is quite self-evident. The better explanation is why we never bought Alphabet before. The reason was a personal bias we held based on three beliefs (which we now believe to be incorrect)

Growth in YouTube would stall as the increased ad-load would turn-off viewers (the double ad-load at the beginning of videos for example). Consumers will focus on discovery rather than search to purchase new items. For example – using Instagram/TikTok to decide what new clothes to buy instead of ‘googling’ for clothes. Other Bets: In general, we felt that capital spent on “Other Bets” has been a bit wasteful with the segment earning just around $3.1bn in revenue versus nearly $21bn in operating losses over the last five years…” (Click here to see the full text)

Overall, 160 funds held a stake in Alphabet Inc. (NASDAQ:GOOG) as of Q1 2022.

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