Horos Asset Management, an investment management company, recently released its second quarter 2022 investor letter. A copy of the same can be downloaded here. Since its inception, in May 2018, Horos Value Internacional has returned 19.8% and Horos Value Iberia has returned 7.1%. For more information on the fund’s top picks in 2022, please check its top five holdings.
Horos Asset Management discussed stocks like Alphabet Inc. (NASDAQ:GOOG). It is a multinational technology company headquartered in Mountain View, California, and has a market capitalization of $1.564 trillion. The stock of Alphabet Inc. (NASDAQ:GOOG) closed at $120.86 per share on August 18, 2022. One-month return of Alphabet Inc. (NASDAQ:GOOG) rose to 11.54% and its shares lost 12.70% of their value over the last 52 weeks.
Here is what Horos Asset Management specifically said about Alphabet Inc. (NASDAQ:GOOG):
“As we pointed out in the previous quarterly letter, high inflation and, more specifically, the consequent interest rate hikes by the vast majority of central banks, led to companies with high growth and future cash flow generation expectations being the most severely hit in this year’s market downturn. This category also includes technology companies with high quality businesses, but which traded at demanding valuations. This is the case of Alphabet Inc. (NASDAQ:GOOG), a company in which we are investing again two and a half years after our exit.
As a reminder, the U.S. technology platform owns arguably the ecosystem of products with the greatest network effect that exists in the world. Specifically, Alphabet has products as well known and used in our daily lives, such as the Google search engine, the operating system for Android mobile devices, the YouTube video platform, the Gmail email, the Google Maps navigation service, the Google Play mobile app store, the Google Drive file storage platform and the Google Photos app. All of them with more than one billion active users (in fact, Android has more than three billion monthly active devices). This rich ecosystem allows the network effects of each product to feed off each other, further strengthening the advertising business, the company’s main source of revenue.
On the other hand, Alphabet made a strong bet a few years ago on the cloud infrastructure and data services business (Google Cloud), and today ranks third in market share, behind Amazon (Amazon Web Services) and Microsoft (Microsoft Azure). In addition, the company has what may be the most advanced autonomous vehicle project in the West (Baidu is the undisputed leader in China), as well as a host of emerging projects, not to mention its huge capabilities in the field of artificial intelligence. All this, combined with the decline in the stock price that reflects a significant slowdown in Alphabet’s growth over the next few years, as well as the uncertainty associated with the regulatory pressure that the company has been facing for some time, led us to invest again in this excellent company.”
Photo by Kai Wenzel on Unsplash
Alphabet Inc. (NASDAQ:GOOG) is in 5th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 153 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the first quarter which was 160 in the previous quarter.
We discussed Alphabet Inc. (NASDAQ:GOOG) in another article and shared the top stock picks of Murray Stahl’s Horizon Asset Management. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.
When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.
Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.
At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.
Do the math. According to Musk, this technology could be worth $250 trillion by 2040.
Put another way, that’s roughly equal to:
175 Teslas
107 Amazons
140 Metas
84 Googles
65 Microsofts
And 55 Nvidias
And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.
It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.
Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.
How could anything be worth that much?
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In fact, Verge argues this company’s supercheap AI technology should concern rivals.
Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.
Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.
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