In this article, we discuss 5 cheap social media stocks to buy according to analysts. If you want to see more stocks in this selection, check out 10 Cheap Social Media Stocks to Buy According to Hedge Funds.
5. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 152
P/E Ratio as of April 4: 22.97
Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, operates several social media platforms. The most well-known of these include YouTube, Blogger, and Google Meet. Formerly, the company operated Google+, which was a social networking platform that aimed to compete with Facebook but was shut down in 2019. Alphabet Inc. (NASDAQ:GOOG) is one of the best cheap social media stocks to invest in.
On March 20, Stifel analyst Mark Kelley initiated coverage of Alphabet Inc. (NASDAQ:GOOG) with a Buy rating and a price target of $130. According to the analyst, early demos of Microsoft’s Bing via OpenAI have been impressive while Google’s demos have been disappointing. However, the analyst does not expect a significant change in consumer behavior or spending on search ads. Alphabet Inc. (NASDAQ:GOOG) has been focusing on AI for some time, and the analyst predicts that more AI-based searches may slightly affect the company’s margins. The firm believes that Alphabet Inc. (NASDAQ:GOOG) will take proactive measures to satisfy regulators before the DOJ case is resolved. Additionally, Kelley sees a considerable opportunity for YouTube and YouTube TV.
According to Insider Monkey’s fourth quarter database, 152 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), compared to 156 funds in the prior quarter. Chris Hohn’s TCI Fund Management is the largest stakeholder of the company.
Weitz Partners III Opportunity Fund made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q4 2022 investor letter:
“Unfortunately, the performance story of the year is told by the Fund’s detractors. Now, weakening ad spending across all channels has added insult to injury, and concerns have spread to the other dominant digital ad player, Alphabet Inc. (NASDAQ:GOOG) — parent of Google and YouTube.
Meta, Alphabet, Amazon and CarMax were all top detractors for the quarter and calendar year periods (FIS and Liberty Broadband, respectively, complete the quarterly and calendar-year detractor lists.) To varying degrees, each is managing through cyclical challenges during a period of substantial investor pessimism. Drawdowns of this magnitude are painful, and it may be prudent for management to moderate the pace of some investments, but we remain encouraged by their long-term focus. In the short run, cutting spending indiscriminately to “defend earnings” may lessen the pain of a drawdown, but it seldom grows a company’s business value — the ultimate prize.”
