5 High Free Cash Flow Stocks to Buy in 2022

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 160 

Free Cash Flow TTM: $65 Billion 

Alphabet Inc. (NASDAQ:GOOG) is a diversified technology company. The company has delayed the plans to end the use of third-party cookies in the Google Chrome browser to 2023, according to recent reports. This has given a small boost to internet advertising stocks. Per the reports, the company plans to give internet ad tech firms more time to test a cookie-less approach. Google has already said it will be testing this approach through an initiative dubbed the Privacy Sandbox. 

On July 27, Evercore ISI analyst Mark Mahaney maintained an Outperform rating on Alphabet Inc. (NASDAQ:GOOG) stock and lowered the price target to $140 from $155.50, appreciating the surprisingly solid second quarter earnings report of the firm. 

Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG), with 2.3 million shares worth more than $6.6 billion. 

In its Q2 2022 investor letter, Wedgewood Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:

“Alphabet Inc. (NASDAQ:GOOG) grew its core search revenues +24% on a +30% year-ago comparison. Despite this stellar top-line performance, shares sold off as the market began to discount fears of a recession. However, the stock has outperformed relative to other holdings as core Google Search has been less affected by disruptions related to Apple’s privacy initiatives. Alphabet’s Cloud segment is generating revenue at a $24 billion run rate but is still running at a loss. We think this business can generate much better margins at some point. In the meantime, the Company has 4% to 5% of shares authorized for repurchase which is an attractive use of capital as the stock trades for about just 18X 2023 consensus estimates.”