In this article, we will take a look at 5 of the near-monopoly stocks in the US. If you want to see more stocks in this selection, go to the Monopoly Definition and 11 Near Monopoly Stocks in the US.
5. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 163
Alphabet Inc. (NASDAQ:GOOG), a notable presence in the technology industry, is anchored by Google, a search engine processing billions of daily queries. The company boasts diverse platforms for video streaming and productivity, with YouTube standing out as a notable asset. Additionally, Alphabet Inc. (NASDAQ:GOOG) is involved in the retail of electronic devices, including smartphones, ultra-thin notebooks, and speakers.
In addition to Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG)’s Google commands a substantial 97% market share in the web browser segment. According to experts, Google’s disruptive impact on the search advertising industry has automated various tasks, leading to a global job loss of 199,000 people.
As of the close of the third quarter of 2023, 163 hedge funds held stakes in Alphabet Inc. (NASDAQ:GOOG). The most significant stakeholder in the company during this period was Ken Fisher’s Fisher Asset Management, which owns a $5.72 billion stake in Alphabet Inc. (NASDAQ:GOOG).
Ensemble Capital Management made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2023 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) (+9.32%): Separate from all the discussion of artificial intelligence, Google’s core Search business, having experienced a significant slowdown in 2022, now shows clear signs of reacceleration. While the future of AI and its impact on Google is still subject to a healthy debate, the company seems to have put to bed investor concerns about any rapid negative impact. With Search revenue growth accelerating, and the company rolling out lots of new AI tools, the investor panic from the beginning of the year about AI immediately hurting Google appears to have been overblown.”
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 180
NVIDIA Corporation (NASDAQ:NVDA), headquartered in Santa Clara, California, is a multinational technology company incorporated in Delaware. The company specializes in designing and selling GPUs (Graphics Processing Units) for various applications, including gaming, cryptocurrency mining, and professional uses. Nvidia also provides chip systems utilized in sectors such as vehicles, robotics, and other tools.
On November 21, NVIDIA Corporation (NASDAQ:NVDA) released its financial results for the third quarter, concluding on October 29, 2023. The company reported a significant increase in revenue, reaching $18.12 billion, marking a 206% surge compared to the same period last year and a notable 34% rise from the previous quarter. The quarter recorded GAAP earnings per diluted share of $3.71, reflecting a more than 12-fold increase from a year ago and a 50% uptick from the previous quarter. Non-GAAP earnings per diluted share were $4.02, indicating an almost 6-fold rise from a year ago and a 49% increase from the previous quarter.
Insider Monkey’s analysis of hedge fund portfolios for NVIDIA Corporation (NASDAQ:NVDA) in Q3 2023 revealed that 180 hedge funds had a stake in the company. Citadel Investment Group emerged as the largest stakeholder, holding approximately 21.85 million shares valued at about $9.5 billion in NVIDIA Corporation (NASDAQ:NVDA).
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 234
Meta Platforms, Inc. (NASDAQ:META), formerly recognized as Facebook, Inc. and TheFacebook, Inc., stands as a prominent American multinational technology conglomerate based in Menlo Park, California. The company oversees a diverse portfolio of products and services, including Facebook, Instagram, Threads, WhatsApp, and several others. Meta Platforms, Inc. (NASDAQ:META) recently introduced AI tools for image editing on Instagram, along with new chat stickers. Analysts at Barclays are optimistic that these AI-driven initiatives could enhance engagement across Meta’s social apps in 2024, potentially leading to a significant boost in the company’s core advertising revenue, estimated at $16 billion.
As of the conclusion of the third quarter in 2023, 234 out of the 910 hedge funds tracked by Insider Monkey disclosed holdings in Meta Platforms, Inc. (NASDAQ:META). Citadel Investment Group, led by Ken Griffin, emerged as the largest stakeholder during this period.
Weitz Investment Management Large Cap Equity Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q3 2023 investor letter:
“As for other quarterly contributors, Alphabet, Inc., (GOOG) and Meta Platforms, Inc. (NASDAQ:META) added to their exceptional year-to-date returns. Meta Platforms and Alphabet were the true year-to-date standouts. After steep declines in 2022, both stocks rebounded sharply due to a combination of solid fundamentals, disciplined operational execution, and improved sentiment. Despite outsized gains and attention, we think both Alphabet and Meta remain undervalued.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN), a prominent American multinational technology company, operates across a diverse spectrum of business interests, including e-commerce, cloud computing (Amazon Web Services – AWS), online advertising, digital streaming, and artificial intelligence. Amazon.com, Inc. (NASDAQ:AMZN) dominates the ecommerce market in the United States with an impressive market share of 37.8%. This positions the company significantly ahead of competitors such as Walmart and eBay, which hold market shares of 6.3% and 3.5%, respectively.
In the quarter ending in September, Amazon.com, Inc. (NASDAQ:AMZN) reported a remarkable 236% growth in EPS, reaching $0.94. Notably, for its closely-watched Amazon Web Services Cloud business, the company recorded a 12% year-over-year sales increase, reaching $23.1 billion—slightly below analysts’ expectations for sales of $23.2 billion. Amazon.com, Inc. (NASDAQ:AMZN) also outlined its anticipation of fourth-quarter sales falling within the range of $160 billion to $167 billion.
According to data from Insider Monkey’s database, a total of 286 elite hedge funds held positions in Amazon.com, Inc. (NASDAQ:AMZN) stock, with a combined stake value of $38.8 billion. This marks an increase from the previous count of 278 hedge funds that collectively held a stake valued at $34.9 billion. Notably, Ken Fisher’s Fisher Asset Management emerged as the most significant stakeholder in the company, with 41.35 million shares valued at $5.25 billion.
In its October 2023 investor letter, Lakehouse Capital stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN):
“The Fund’s largest position, Amazon.com, Inc. (NASDAQ:AMZN), reported an impressive quarterly result with strong execution and cost discipline driving significant operating leverage across the business. Net sales grew13% year-over-year (11% in constant currency terms) to $143 billion whilst operating income grew 348% to $11.2 billion, well ahead of guidance and analysts’ expectations. Growth within their core e-commerce business proved resilient again and management noted that they are continuing to see material productivity and operational benefits from the recent reorganisation of their US fulfilment network. This involved transitioning from one national network to a series of eight separate regions serving smaller geographic areas.
The companies second largest segment, Amazon Web Services (AWS), grew revenue at 12%, a rate consistent with what was achieved last quarter. This was pleasing to see as it signalled that growth is stabilising after several quarters of deceleration driven by customer optimisations. Whilst these customer optimisations are moderating, management noted that they still remain at elevated levels, and hence, they will likely provide a slight (albeit diminishing) headwind for the next few quarters. In any event, we are not concerned as we believe the current headwinds are more a factor of cyclical weakness, as opposed to any fundamental issues. Zooming out, AWS remains the leading cloud provider (in what is an increasingly two-horse race with Microsoft’s Azure) and with 90% of global IT spend still on-premise there is still plenty of runway for future growth.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 306
Microsoft Corporation (NASDAQ:MSFT), an American multinational technology company headquartered in Redmond, Washington, is renowned for its suite of software products, including the Windows line of operating systems, the Microsoft 365 suite of productivity applications, and the Edge web browser.
In January 2022, Microsoft Corporation (NASDAQ:MSFT) unveiled its intentions to acquire game company Activision Blizzard in an all-cash deal valued at nearly $70 billion. This surpasses the company’s 2016 deal of $26 billion with LinkedIn and would stand as the company’s largest acquisition to date if successfully completed. The acquisition signifies Microsoft Corporation (NASDAQ:MSFT)’s strategic shift towards emphasizing gaming content delivery in addition to platform development, showcasing the company’s ambitions to explore opportunities in the emerging metaverse industry. Another noteworthy acquisition by Microsoft Corporation (NASDAQ:MSFT) was the purchase of the voice artificial intelligence (AI) company Nuance in 2021 for nearly $20 billion, reflecting the company’s focus on industry-specific cloud strategy, particularly in the healthcare market where Nuance holds a strong position.
In a recent announcement, Microsoft Corporation (NASDAQ:MSFT) disclosed its financial results for the first quarter of the 2024 fiscal year. The tech giant reported impressive revenue of $56.5 billion, accompanied by a net income of $22.3 billion in Q1. These figures indicate significant growth, with revenue increasing by 13% and net income surging by 27%. While the Devices segment faced challenges in this quarter, there was a modest recovery observed in the Windows division. Notably, Microsoft Corporation (NASDAQ:MSFT)’s cloud services and Office suite experienced substantial growth, with the company’s Cloud revenue reaching $31.8 billion, reflecting a 24% year-over-year increase.
As per Insider Monkey’s Q3 2023 database, Microsoft Corporation (NASDAQ:MSFT) emerged as the most popular stock among hedge funds, with 306 funds holding stakes in the company, collectively valued at nearly $72.1 billion.
You can also take a look at 12 Best Tech Stocks To Buy According to Billionaire Ken Griffin and 11 Cheap Pot Stocks to Buy
