Hedge Funds Prefer These 4 Tech Stocks Over Netflix

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In this article, we discuss the 4 tech stocks that hedge funds prefer over Netflix. If you want to read about some more tech stocks that hedge funds like, go directly to Hedge Funds Prefer These 9 Tech Stocks Over Netflix. 

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 209  

The ticker, Alphabet Inc. (NASDAQ:GOOGL), represents the Class A shares of tech firm Alphabet. As the net income of the firm increases, there are indications that it could follow the path of competitor Apple and splurge on share buybacks to boost the EPS. Apple has spent close to half a trillion dollars on share buybacks in the past few years. With services like YouTube and Google Cloud generating a significant amount of revenue for the firm, it seems like Google does not need to invest a whole lot more into services, unlike consumer giant Apple. 

In the next few years, Google Cloud, which generated $22 billion in revenue for Alphabet Inc. (NASDAQ:GOOGL) in the past quarter, could jump to around $100 billion annual revenue by 2025. Incentive to spend on share buybacks is increased considering that most of the cash produced by Google is held in securities with percent returns. 

At the end of the fourth quarter of 2021, 209 hedge funds in the database of Insider Monkey held stakes worth $32.3 billion in Alphabet Inc. (NASDAQ:GOOGL), up from 195 in the preceding quarter worth $28.5 billion. 

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