Alphabet Inc. (NASDAQ:GOOGL) ranks among the best fundamental stocks to buy according to hedge funds. Citing favorable channel checks for both Search and YouTube, Citi upheld its Buy rating on Alphabet Inc. (NASDAQ:GOOGL) on June 24 and raised its price target from $200 to $203.
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While YouTube and Search continue to be at the core of most media buying strategies, the research firm pointed out that advertisers are becoming more conscious of how users’ search habits are evolving, with ChatGPT reaching almost 603 million monthly active users in May as opposed to Gemini’s 77 million.
Nonetheless, YouTube remains strong, with over 1 billion hours of TV viewing every day and a 12.5% share of all viewing time in the US. Compared to the roughly 70 billion views recorded in September 2023, YouTube Shorts currently receives over 200 billion views a day, an aspect Citi found impressive.
Alphabet Inc. (NASDAQ:GOOGL) is a leading tech giant with a diverse portfolio, offering products such as Google ads, Google Chrome, Search, and YouTube, holding a dominant position in each of these markets.
While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds
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