5 Stocks to Sell According to Jinghua Yan’s TwinBeech Capital

4. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 160
Percentage Decrease in Stake in Q1: 100% 

In the United States, Europe, the Middle East, Africa, Asia-Pacific, Canada, and Latin America, Alphabet Inc. (NASDAQ:GOOG) offers a variety of technology products and platforms. It works via three segments – Google Services, Google Cloud, and Other Bets. On May 19, Advanced Micro Devices, Inc. (NASDAQ:AMD) announced a partnership with Alphabet Inc. (NASDAQ:GOOG) Cloud to help with chip-design workloads and improve AMD’s data centres.

After the business announced a relatively mixed first quarter, Wells Fargo analyst Brian Fitzgerald trimmed his price target on Alphabet Inc. (NASDAQ:GOOG) to $3,400 from $3,600 to reflect deteriorating industry values while maintaining an Overweight rating on the stock.

As of the end of the first quarter of 2022, 160 hedge funds in Insider Monkey’s database held stakes in Alphabet Inc. (NASDAQ:GOOG), an increase compared to 158 funds in the preceding quarter. Alphabet Inc. (NASDAQ:GOOG) is one of the stocks that Jinghua Yan’s TwinBeech Capital sold off entirely during the first quarter of 2022. The firm had featured on the fund’s portfolio since the fourth quarter of 2019.

Farrer Wealth Advisors mentioned Alphabet Inc. (NASDAQ:GOOG) in its Q1 2022 investor letter. Here is what the fund said:

“Alphabet: 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)