Top 5 Stock Picks of Brad Farber’s Atika Capital

2. Alphabet Inc. (NASDAQ:GOOG)

Atika Capital’s Stake Value: $45,310,000

Percentage of Atika Capital’s 13F Portfolio: 2.69%

Number of Hedge Fund Holders: 155

Brad Farber’s Atika Capital owns 17,000 shares in Alphabet Inc. (NASDAQ:GOOG), as of the third quarter, worth $45.31 million, representing 2.69% of the firm’s investment portfolio. Alphabet Inc. (NASDAQ:GOOG) is the parent company of Google and Google subsidiaries, formed in 2015 after Google was restructured to enhance transparency and accountability throughout the organisation. 

As of the second quarter of 2021, 155 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), with stakes worth $33.79 billion. One of the leading stakeholders of Alphabet Inc. (NASDAQ:GOOG), according to the database of Insider Monkey, is Chris Hohn’s TCI Fund Management, with a stake value of $7.86 billion. 

Alphabet Inc. (NASDAQ:GOOG) posted its Q3 results on October 26. The Q3 EPS for the company totaled $27.99, beating estimates by $4.75. Revenue for the quarter was up 41.03% year-over-year, amounting to $65.12 billion. 

Alphabet Inc. (NASDAQ:GOOG) price target was raised to $3,500 from $3,325 at Jefferies by analyst Brent Thill on October 27, following a solid Q3 earnings beat. He stated that despite tougher comps, Alphabet Inc. (NASDAQ:GOOG) is set to have strong Q4 earnings. 

Here is what Alger has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 investor letter:

“Alphabet Inc. was among the top contributors to performance during the third quarter. Alphabet is a leading internet search provider and is a beneficiary in the share shift of advertising dollars from traditional mediums like television, radio and newspapers to digital platforms. The company is a leader in implementing Al, autonomous vehicles and cloud computing and owns the highly trafficked YouTube property. Alphabet contributed to performance due to a strong quarterly report highlighted by revenue growth that beat consensus expectations across segments. The company’s core search revenues have increased 10% over the past two years, with cloud computing increasing 8%. Results from YouTube also exceeded expectations. When discussing quarterly results, Alphabet management said retail, entertainment and travel were end markets that were particularly strong. The fixed cost structure of Alphabet’s search service resulted in profitability resulting from the increase in revenues being better than expected.”