Top 10 Stocks to Buy According to Lee Munder Capital Group

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders as of Q3: 202

LMCG’s Equity Stake: $48.80 Million 

One of the prominent stocks Munder holds in the technology sector, Alphabet Inc. (NASDAQ:GOOGL) is headquartered in Mountain View, California. It is a multinational technology conglomerate and the third-largest technology company in the world by revenue, following Amazon and Apple. Established in 2015 through a restructuring of Google, Alphabet became the parent company of Google and several other former Google subsidiaries. Alphabet is part of the Big Five American tech companies.

Alphabet Inc. (NASDAQ:GOOGL) generates revenue from its search engine, artificial intelligence developments, mobile operating systems, cloud computing services, and advertising. For Q3 2024, the company reported a revenue of $88.27 billion, representing an 11% increase compared to the same period last year and surpassing analysts’ expectations of $86.39 billion. The company’s net income for the quarter reached $26.3 billion, marking a year-over-year growth of 33.6%. Operating income stood at $28.5 billion, an improvement from $21.3 billion in Q3 2023. Alphabet exceeded the consensus estimate for earnings per share (EPS) by $0.29, reporting an EPS of $2.12 for the quarter, compared to $1.55 in the same period of the previous year.

The company’s Q3 2024 financial performance appears strong, as Alphabet Inc. (NASDAQ:GOOGL) exceeded both revenue and earnings expectations. The 11% year-over-year increase in revenue and 33.6% rise in net income demonstrated solid growth and operational efficiency. The operating income boost from $21.3 billion to $28.5 billion, alongside a $0.29 earnings per share (EPS) beat, reflects enhanced profitability and solid market performance. This is positive news for investors and indicates that Alphabet is successfully expanding its business and maintaining competitive advantages, especially given the ongoing challenges in the tech sector.

Oakmark Equity and Income Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q4 2024 investor letter:

“Alphabet Inc. (NASDAQ:GOOGL) was the top contributor during the quarter. Despite ongoing litigation with the Department of Justice in its antitrust case, the U.S.-headquartered interactive media and services company’s stock price rose after posting solid third-quarter earnings. In the Search division, the company generated low-teens year-over-year revenue growth and management highlighted that they’re seeing strong user engagement with their new AI Overviews feature. The biggest upside surprise came from the Cloud division, where revenue growth accelerated to 35% and margins reached a record of 17%. This performance was driven by client demand for AI Infrastructure and Generative AI Solutions as well as core Google Cloud Platform (GCP) products. We continue to believe Alphabet is a collection of great businesses that can unlock further value over the long term through its world-class AI capabilities.”