Michael Burry Sells These 5 Stocks to Brace for Impact

2. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 160

Alphabet Inc. (NASDAQ:GOOG) is a California-based technology conglomerate. Michael Burry initially invested in Alphabet Inc. (NASDAQ:GOOG) in Q4 2018 and sold off his position in Q2 2019. He again bought 130,000 shares of the firm in Q1 2022, worth $18 million, only to dispose of his stake in Q2 2022. 

On August 3, Tigress Financial analyst Ivan Feinseth raised the price target on Alphabet Inc. (NASDAQ:GOOG) to $186 from $183 and reaffirmed a Strong Buy rating on the shares, citing resilient Q2 results that display the robustness of its primary business in Cloud and Search. Investment in Artificial Intelligence continues to support “increasingly focused and helpful experiences for users and businesses,” the analyst added.

According to Insider Monkey’s Q1 data, 160 hedge funds reported owning stakes in Alphabet Inc. (NASDAQ:GOOG), up from 158 funds in the prior quarter. Chris Hohn’s TCI Fund Management is the leading position holder in the company, with 2.3 million shares worth $6.6 billion. 

Here is what Wedgewood Partners has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q2 2022 investor letter:

“Alphabet 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.”