Alphabet (GOOG) Rises After Strong Earnings Report

Aristotle Atlantic Partners, LLC, an investment advisor, has released its Core Equity Strategy for Q2 2024. You can download a copy of the letter here . The U.S. stock market hit a record high in the second quarter. Aristotle Atlantic’s Core Equity strategy returned 5.61% gross of fees (5.51% net of fees) for the quarter, outperforming the S&P 500’s total return of 4.28%. The relative outperformance was driven by security selection. Security selection in the Information Technology and Healthcare space contributed the most to the relative performance, while Consumer Staples and Consumer Discretionary took the spotlight away. Additionally, you can check out the fund’s top 5 holdings to determine its top picks for 2024.

Aristotle Atlantic Core Equity Strategy highlighted stocks like Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter. Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through its Google Services, Google Cloud, and Other Bets segments. Alphabet Inc. (NASDAQ:GOOG)’s one-month return was -0.95%, while its stock gained 41.60% of its value over the past 52 weeks. On July 23, 2024, Alphabet Inc. (NASDAQ:GOOG) stock closed at $183.60 per share with a market capitalization of $2.257 trillion.

Aristotle Atlantic Core Equity Strategy stated in its Q2 2024 investor letter that:

Alphabet Inc. (NASDAQ:GOOG) contributed to the portfolio’s second-quarter performance, boosted by a strong earnings report that showed better-than-expected revenue across the board. The company’s positive commentary on the long-term monetization of its AI investments, the initiation of a dividend, and the expansion of its share repurchase program all contributed to the strong results. Additionally, evidence increasingly suggests that competitor use cases for GenAI did not disrupt Alphabet’s search business, allowing the company to maintain its market leadership position and attract additional advertising dollars.

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Alphabet Inc. (NASDAQ:GOOG) ranks 7th on our list of the 31 most popular stocks among hedge funds. According to our database, 165 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the first quarter, up from 166 in the previous quarter. Alphabet Inc. (NASDAQ:GOOG) generated $80.5 billion in revenue in the first quarter, up 15% year over year (see the details here ). While we recognize the potential of Alphabet Inc. (NASDAQ:GOOG) as an investment, our belief is based on the belief that AI stocks show greater promise in delivering higher returns and do so in a shorter time frame. If you’re looking for AI stocks that are as promising as NVIDIA but are trading at less than 5 times its earnings, check out our report on cheapest AI action.

In another article, we covered Alphabet Inc. (NASDAQ:GOOG) and shared a list of the biggest AI stock upgrades and downgrades in July. Alphabet Inc. (NASDAQ:GOOG) comes in at No. 5 on the list. Alphabet Inc. (NASDAQ:GOOG) was a significant contributor to the Q2 2024 returns of many investment firms, such as Polen Capital, Madison Investments, and Wedgewood Partners.) Also, check out our Q2 2024 Hedge Fund Investor Letters page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article was originally published on The initiated monkey.