Top 5 Stocks to Buy Right Now

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5. Alphabet Inc (NASDAQ: GOOGL)

Shares of Alphabet Inc (NASDAQ: GOOGL) outperformed the broader market index year to date, thanks to prospects for increased advertisement revenue. It is the sixth-largest stock holding of Ken Fisher’s portfolio, accounting for 2.50% of the overall portfolio. 

Polen Capital stated in the first quarter investor letter that Google was among the top contributors to its performance. Here is what Polen Capital stated

“For our top contributors, each generated strong returns for different, but fundamentally based reasons, in our opinion. Alphabet saw renewed strength recently as advertisers generally resumed spending after a short pause during the pandemic.

Alphabet experienced some challenging quarters in 2020 as many companies paused their advertising spend. But, the business bounced back recently, spurring a strong recovery in the company’s share price. Even during such a challenging period, the company still compounded revenue at 14% in constant currency for 2020.

This is partly due to Alphabet’s multiple growth engines. For example, while its search business was negative one quarter and only grew by 6% during another, YouTube ads and Google Cloud Platform (GCP) grew at over 30% and 46% during the quarter, respectively. YouTube and GCP combined now contribute over 50% of the company’s growth, which we believe is a testament to a strong culture of innovation, a long-term mindset, and prudent capital allocation. With search bouncing back this most recent quarter–growing 17% –we believe that Alphabet continues to be well-positioned to durably compound earnings at or above 15% for many years to come. It remains one of our largest positions.”

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