Analysts Say Buy These 5 Stocks Despite Earnings Miss

2. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 160 

Alphabet Inc. (NASDAQ:GOOG) is a diversified technology company. On July 26, the company posted earnings for the second quarter of 2022, reporting earnings per share of $1.21, beating market estimates by $0.06. The revenue over the period was $69 billion, up more than 12% compared to the revenue over the same period last year and missing market expectations by $110 million. The revenue from Google Search and other mediums was more than $40 billion, per the tech giant. 

On August 3, Tigress Financial analyst Ivan Feinseth maintained a Strong Buy rating on Alphabet Inc. (NASDAQ:GOOG) stock and raised the price target to $186 from $183, noting the resilience of the core cloud and search business of the firm amid macro headwinds. 

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.”