We just covered the Top 10 Stock Picks of 10 Famous Billionaires. Alphabet ranks #2 (see Top 5 Stock Picks of 5 Famous Billionaires).
Number of Hedge Funds: 265
Top Pick Of: Chase Coleman — Tiger Global Management
Alphabet is the biggest holding of billionaire Chase Coleman’s Tiger Global.
What was once seen as a business at risk of being disrupted by AI has, instead, turned the tables.
In Q1, Google Search rose about 19%, showing that AI is not reducing usage but actually increasing engagement across queries. YouTube advertising revenue grew 11%, supported by better AI-driven targeting and improved ad relevance. Subscription products also continued to scale, benefiting from deeper integration of AI across Google’s ecosystem.
Google Cloud remains the biggest catalyst in the story. Revenue rose 63% in Q1, while operating margins expanded sharply as the business moved further into high-value enterprise workloads. The Cloud backlog came in at about $460 billion, giving strong visibility into future revenue. Alphabet custom TPU chips are also becoming a key advantage, supporting both cost efficiency and AI compute demand.
Gemini has reached approximately 750 million monthly active users in its standalone app, while its models power over 2 billion monthly users through Google Search AI Overviews and AI Mode. Paid adoption is also scaling, with more than 8 million enterprise seats across thousands of companies.
From a valuation perspective, the stock trades at roughly a mid-to-high 20s forward P/E (~26–28x). Earnings are expected to grow around high-20% to low-30% annually, driven by Search resilience, Cloud acceleration, and AI monetization across products.
L1 Capital International Fund stated the following regarding Alphabet Inc. in its Q1 2026 investor letter:
Portfolio adjustments during the March 2026 quarter were relatively modest, but deliberate. We trimmed investments in AerCap, Alphabet Inc., HCA Healthcare and Weir Group at prices around the top end of our assessed fair value range, with all of these businesses benefitting from positive sentiment intra-quarter. Alphabet’s share price has more than doubled over the past 12 months. This reflects strong performance in core Search, continued momentum in Google Cloud Platform, and better-than-expected progress in AI (Gemini). Today Alphabet has a market capitalisation approaching US$4 trillion. Share prices and fair value are not always aligned, even for the world’s largest companies (Click Here to Read the Letter in Detail).
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