Top 5 Stocks to Invest in Based on Traci Lerner’s Chescapmanager LLC’s Portfolio

4. Alphabet Inc. (NASDAQ: GOOG)

Chescapmanager LLC Stake Value: $30.5 million
Percentage of Chescapmanager LLC’ 13F Portfolio: 3.34%
No. of Hedge Fund Holders: 155

Alphabet Inc. (NASDAQ: GOOG), headquartered in Mountain View, California, is an American multinational conglomerate. It was formed as a result of a Google restructuring. It is the parent company of Google and a number of Google’s former subsidiaries.

The company has a market cap of $1.9 trillion. In the second quarter of 2021, Alphabet Inc. (NASDAQ: GOOG) reported an EPS of $27.26, beating estimates by $19.35. The company’s revenue in the second quarter came in at $61.9 billion, an increase of 62% year over year, and beat revenue estimates by $56.1 billion.

On September 17, investment advisory Jefferies kept a Buy rating on Alphabet Inc. (NASDAQ: GOOG) stock and increased the price target to $3,325 from $3,150. Brent Thill, an analyst at the firm, cited the valuation as the key reason behind the upgrade in the ratings.

Our data shows that Select Equity Group is one of the biggest stakeholders of Alphabet Inc. (NASDAQ: GOOG) with 36,089 shares worth $90.4 billion.

At the end of the second quarter of 2021, 155 hedge funds in the database of Insider Monkey held stakes worth $33.8 billion in Alphabet Inc. (NASDAQ: GOOGL), down from 159 the preceding quarter worth $29.1 billion.

Here is what Qualivian Investment Partners has to say about Alphabet Inc. in its Q2 2021 investor letter:

“The opportunity in online advertising remains very attractive for Alphabet’s subsidiary Google. In the recent June quarter, Google’s ad sales grew 69%. Alphabet’s subsidiary YouTube’s ad revenue soared 84%, to $7 billion, in the second quarter, putting the business on par with Netflix, which reported quarterly revenue of $7.3 billion. Netflix is expected to grow sales by 19%, to $29.7 billion this year, while YouTube’s ad revenue is forecast to rise 45%, to $28.7 billion.

Alphabet slashed operating losses for the Google Cloud by more than half, as the business continues to scale, growing at 50%+ clips. Furthermore, the company continues to have potentially new growth options via its investments in autonomous driving (Waymo) and various healthcare businesses such as Verily and Calico.”