Top 5 Stock Picks of Steve Leonard’s Pacifica Capital Investments

4. Alphabet Inc. (NASDAQ:GOOG)

Pacifica Capital Investments’ Stake Value: $32,074,000

Percentage of Pacifica Capital Investments’ 13F Portfolio: 10.36%

Number of Hedge Fund Holders: 156

Alphabet Inc. (NASDAQ:GOOG), a top US tech company, represents 10.36% of Leonard’s Pacifica Capital Investments’ Q3 portfolio, with the firm holding a $32 million stake in the company. Alphabet Inc. (NASDAQ:GOOG) is the parent company of Google and Google subsidiaries, created in 2015 with the intention of increasing transparency and accountability throughout the organization. 

Alphabet Inc. (NASDAQ:GOOG) posted on October 26 its Q3 results. EPS for the quarter came in at $27.99, topping estimates by $4.75. The $65.12 billion revenue exceeded estimated revenue by $1.83 billion. Jefferies analyst Brent Thill raised the price target on Alphabet Inc. (NASDAQ:GOOG) from $3,325 to $3,500 and kept a Buy rating on the stock, following the strong Q3 earnings beat. 

One of the leading Alphabet Inc. (NASDAQ:GOOG) stakeholders is Harris Associates, with 1.87 million shares valued at over $5 billion. Overall, 156 hedge funds in the database of Insider Monkey reported owning stakes worth $34.95 billion in Alphabet Inc. (NASDAQ:GOOG) as of September this year. 

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.”