Top 5 Technology Stocks to Buy in 2023 According to Ray Dalio

3. Alphabet Inc. (NASDAQ:GOOG)

Value of Bridgewater Associates’ 13F Position: $65.62 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.35%
Number of Hedge Fund Shareholders: 152

Alphabet Inc. (NASDAQ:GOOG) is a global technology company that owns Google and provides products like Google Maps, Search, YouTube, and Gmail, as well as hardware like Pixel phones and smartwatches. In addition, advertising services are offered through Google Network properties like AdSense, Google Ad Manager, and AdMob. Alphabet invests in infrastructure, data, machine learning, analytics, and AI.

On April 6, UBS analyst Lloyd Walmsley reiterated a ‘Buy’ rating on Alphabet Inc. (NASDAQ:GOOG) shares and raised the price target from $120 to $123. Walmsley expected the company to beat 1Q23 estimates, with Google Website revenues surpassing Street expectations and improved gross margins in Q1.

In the fourth quarter, Ray Dalio cut his stake in Alphabet Inc. (NASDAQ:GOOG) by 721,956 shares, reducing his total stake size by 50%. He first invested in Alphabet Inc. (NASDAQ:GOOG) in the third quarter of 2015. The stock has struggled in the past twelve months, dropping more than 19%. However, Dalio still holds 743,738 shares of the company, worth more than $65.62 million.

Hedge funds are loading up on Alphabet Inc. (NASDAQ:GOOG), as Insider Monkey’s data shows that 152 hedge funds held a stake in the company as of the end of the fourth quarter of 2022, compared to 156 funds at the end of the previous quarter. Chris Hohn’s TCI Fund Management is the leading shareholder of Alphabet Inc. (NASDAQ:GOOG) with 54.54 million shares.

Diamond Hill Capital made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q4 2022 investor letter:

“Other bottom contributors included media and technology giant Alphabet Inc. (NASDAQ:GOOG), apparel and footwear company V.F. Corporation and utility operator Dominion Energy. We believe Alphabet’s shares underperformed on concerns of a weakening macroeconomic environment. The company also reported weaker-than-expected earnings and revenue for Q3 2022. Longer-term, we expect Alphabet’s search engine advertising, YouTube advertising and other initiatives to continue driving revenue growth. As such, we used the share price weakness this quarter to add to our position.”