Top 5 Stock Picks of John Overdeck and David Siegel’s Two Sigma Advisors

2. Alphabet Inc. (NASDAQ:GOOG)

Two Sigma Advisors’ Stake Value: $603,643,000

Percentage of Two Sigma Advisors’ 13F Portfolio: 1.56%

Number of Hedge Fund Holders: 156

Alphabet Inc. (NASDAQ:GOOG), recognized for being the parent company of Google, represents 1.56% of the total 13F securities at Two Sigma Advisors as of Q3 2021, with the hedge fund owning 225,786 Alphabet Inc. (NASDAQ:GOOG) shares, worth $603.6 million. 

On October 26, the Q3 EPS for Alphabet Inc. (NASDAQ:GOOG) totaled $27.99, topping estimates by $4.75. Revenue for the quarter came in at $65.12 billion, up 41.03% year-over-year. 

One of the leading Alphabet Inc. (NASDAQ:GOOG) stakeholders from the third quarter is Harris Associates, holding a position worth over $5 billion in the company. Overall, 156 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG) at the end of Q3, with a total stake value of over $28.5 billion. 

Despite tougher comps, Alphabet Inc. (NASDAQ:GOOG) is set to deliver a strong Q4 performance after solid results in the third quarter, according to Jefferies analyst Brent Thill on October 27. He raised the price target on Alphabet Inc. (NASDAQ:GOOG) stock to $3,500 from $3,325 and kept a Buy rating on the shares.

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

“Alphabet, a U.S. communication services provider, was once again a top contributor for the quarter, solidifying its rank as a top contributing stock for the one-year period. The company’s financial results repeatedly exceeded expectations. In particular, its revenue grew faster than expected and its margin trends improved across all segments. In addition, management has executed $24.4 billion of stock repurchases so far in 2021. After further examination, we recently increased our estimate of Alphabet’s intrinsic value based on the company’s better than expected operating leverage and its notable efficiency improvements. As a result, we continue to believe that Alphabet is trading at a significant discount to its intrinsic value.”