Hedge Fund Favorites Outperform the Market, with Tesla Joining the Ranks for the First Time in Three Years.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 21 2025
0mins
Should l Buy GOOGL?
Source: MarketWatch
Hedge Fund Performance: Hedge fund favorite stocks have outperformed the broader market in 2023, with a notable return of 15% compared to 11% for the S&P 500.
Tesla's Comeback: For the first time since 2022, Tesla has made it onto the list of favored stocks by hedge funds, according to an analysis by Goldman Sachs.
Goldman Sachs Analysis: The findings are based on 13-F filings submitted to the Securities and Exchange Commission, highlighting the performance of what Goldman refers to as its “hedge fund VIP” list.
ETF Wrapper: The "hedge fund VIP" list is available through an ETF called GVIP, which tracks these high-performing stocks.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 302.060
Low
305.00
Averages
374.25
High
400.00
Current: 302.060
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Increased Regulatory Scrutiny: With rising concerns over the costs associated with scaling artificial intelligence infrastructure and ongoing regulatory scrutiny, Alphabet faces heightened uncertainty, further impacting investor confidence.
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- Significant Sales Growth: Amazon Web Services (AWS) and Google Cloud achieved sales growth of 24% and 48% respectively in the fourth quarter, demonstrating the positive impact of AI integration on their businesses and further solidifying their market leadership.
- Attractive Valuations: Ackman sees value in Uber's forward P/E ratio of 17 and Amazon's projected cash flow P/E ratio of just 9.6, indicating that these stocks offer high investment potential in the current market environment.
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- Funding Support: Since its founding in 2018, Agile Robots has secured over $270 million in venture funding from investors including SoftBank Vision Fund, Xiaomi, and Midas Group, providing strong financial backing for its collaboration with Google.
- Market Strategy: This partnership is part of Google's broader push into the
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- Stock Option Targets: The stock options require Meta's share price to reach $1,116.08 within five years, an 88% increase from the current closing price, indicating high expectations for future success amid competitive pressure in the AI market.
- Capital Expenditure Plans: Meta plans to invest up to $135 billion in capital expenditures by 2025 to enhance its position in the rapidly growing AI market, despite a 4% decline in stock price over the past year.
- AI Strategy Overhaul: Following the lackluster release of its Llama 4 models, Meta restructured its AI unit and invested $14.3 billion in Scale AI, appointing its CEO as chief AI officer, demonstrating the company's commitment to AI technology and future growth.
See More
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- Capital Expenditure Plans: Meta plans to spend up to $135 billion in capital expenditures by 2025, despite its stock price declining about 4% over the past year, reflecting pressure compared to its tech peers.
- AI Strategic Overhaul: In 2025, Meta overhauled its AI unit and invested $14.3 billion in Scale AI, hiring CEO Alexandr Wang as chief AI officer, demonstrating the company's commitment to the AI field and its future growth ambitions.
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