In this article, we will take a look at the 10 best growth stocks according to George Soros.
The Man Who Broke the Bank of England
George Soros, the owner of Soros Fund Management, is known as one of the most controversial investors in the history of investing. The now 94-year-old, “broke the Bank of England” after he reportedly made $1 billion from shorting the British pound in 1992. As of September 19, Soros has a net worth of $7.2 billion. He managed client money in New York from 1969 to 2011.
Soros Fund Management was founded in 1970 and manages almost $28 billion in net assets at the moment. The fund is the principal asset manager for Soros’ philanthropic venture, the Open Society Foundations (OSF). So far he has given away more than $32 billion of his fortune to the OSF. Last year, Soros handed over the fund to his eldest son, Alexander Soros, who now aims to take his philanthropic endeavors to another level.
George Soros’ Investment Philosophy
Soros is known for being ahead of the market. Historically, he has made financial decisions after gauging market feedback and predicting market activities, that have returned or saved him millions, if not billions. This is what he calls the “reflexivity” theory. By applying this theory to finance and investments, Soros values assets based on market feedback, predicts market bubbles, and exploits market opportunities. A recent example of this was when Soros pulled out a staggering $73 million from two major technology players right before the tech downturn in mid-July.
Soros also uses another method, which he calls the Soros’ Method, to forecast events in the financial markets using current data. He then tests his theories on small investments and if the theory seems to be working out, he expands his position or size of his investment. This, however, does not mean that Soros has never failed or encountered risk during his time as an investor. He has made multiple expensive decisions from which he learned lessons and has even quoted them in his books. Here is an excerpt of what he said in his book, Soros on Soros: Staying Ahead of the Curve:
“The prevailing wisdom is that markets are always right. I take the opposition position. I assume that markets are always wrong. Even if my assumption is occasionally wrong, I use it as a working hypothesis. It does not follow that one should always go against the prevailing trend. On the contrary, most of the time the trend prevails; only occasionally are the errors corrected. It is only on those occasions that one should go against the trend. This line of reasoning leads me to look for the flaw in every investment thesis. … I am ahead of the curve. I watch out for telltale signs that a trend may be exhausted. Then I disengage from the herd and look for a different investment thesis. Or, if I think the trend has been carried to excess, I may probe going against it. Most of the time we are punished if we go against the trend. Only at an inflection point are we rewarded.”
One can say that Soros’ degree in philosophy helped him carve his way into the financial markets. Now that we have studied Soros’ investment philosophy, let’s take a look at the 10 best growth stocks according to George Soros.
Our Methodology
To come up with the 10 best growth stocks according to George Soros, we examined his 13F portfolio and selected his top 10 growth stock picks, as of Q2 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Growth Stocks According to George Soros
10. NextEra Energy, Inc. (NYSE:NEE)
Soros Fund Management’s Stake Value: $44.32 Million
Number of Hedge Fund Holders: 73
NextEra Energy, Inc. (NYSE:NEE) is a prominent renewable energy company and one of the best growth stocks according to George Soros. The company generates, transmits, distributes, and sells electric power, generated through wind, solar, nuclear, and natural gas, across North America.
NextEra Energy, Inc. (NYSE:NEE) provides its services across two major segments including Florida Power & Light (FPL), an electric utility business, and NextEra Energy Resources (NEER), a clean energy producer. FPL accounts for the majority of its revenue. It delivers reliability 66% better than the national average and has residential bills 40% below the national average.
Since 2001, NextEra Energy’s (NYSE:NEE) innovations have helped customers save over $16 billion in fuel costs. During the second quarter of 2024, the company added more than 3,000 megawatts of new renewables and storage. To capitalize on its strategic investments, NextEra Energy (NYSE:NEE) plans to invest somewhere between $8 billion and $8.8 billion in capital expenditures for the fiscal full year 2024. At the end of Q2 2024, 73 hedge funds were bullish on the stock with total stakes amounting to $2.1 billion.
ClearBridge Investments’ ClearBridge Large Cap Growth Strategy stated the following regarding NextEra Energy, Inc. (NYSE:NEE) in its Q2 2024 investor letter:
“AI-related momentum was a key driver of performance in the second quarter, lifting the enablers in technology as well as holdings like renewable power producer NextEra Energy, Inc. (NYSE:NEE) that supply the increasing energy needs of data centers. Parts of the market lacking an AI connection, like our medical device holdings, underperformed despite no change to fundamentals. We have managed through several similar momentum periods over our tenure and have delivered long-term results for shareholders by staying true to an approach that emphasizes diversification across three buckets of growth companies (select, stable and cyclical) and seeks to take advantage of attractive entry points into quality growth businesses.”
9. Uber Technologies, Inc. (NYSE:UBER)
Soros Fund Management’s Stake Value: $50.85 Million
Number of Hedge Fund Holders: 145
Ride-hailing company Uber Technologies, Inc. (NYSE:UBER) is one of the best growth stocks to buy according to George Soros. Soros increased his position by 16% in UBER during the second quarter of 2024.
In Q2 2024, Uber (NYSE:UBER) grew its gross bookings by 21% year-over-year and reported a 14% increase in audience. Innovation is crucial to the success of Uber. Last year the company partnered with Waymo, to bring autonomous driving technology to UBER. Waymo provides autonomous vehicles to Uber for ride-hailing services.
While Uber’s (NYSE:UBER) management thinks autonomous vehicle (AV) technology holds promise, they believe the transition would be rather gradual and human drivers will co-exist with autonomous vehicles for a long time. To strengthen its position on autonomous driving, the company recently extended its partnership with Waymo to offer ride-hailing services to Atlanta and Austin by early 2025.
Despite the uncertainty in the autonomous driving industry, Uber is expected to benefit tremendously from the AI wave. Analysts are bullish on the stock, and their 1-year median price target of $90 points to a 19% upside from current levels. At the close of Q2 2024, 145 hedge funds were bullish on Uber Technologies, Inc. (NYSE:UBER), with total stakes amounting to $8.7 billion.
8. Jacobs Solutions Inc. (NYSE:J)
Soros Fund Management’s Stake Value: $52.12 Million
Number of Hedge Fund Holders: 34
Jacobs Solutions Inc. (NYSE:J) ranks eighth on our list of the best growth stocks to buy according to George Soros, and makes up 0.93% of the portfolio. The fund increased its position in the stock by 7% during the second quarter of 2024. Jacobs Solutions Inc. (NYSE:J) engages in the provision of engineering, technical, professional, and construction services, with a specialized focus on building data centers, life sciences facilities, and spacecraft.
The company provides its services in more than 40 countries. In the fiscal third quarter of 2024, the company logged $4.23 billion in revenue and had a backlog of $30.6 billion, up by 6% year-over-year. Jacobs Solutions Inc. (NYSE:J) is consistently growing and that has been brought to fruition because of its focus on portfolio optimization and high-growth sectors.
The company is benefiting from the growth in technology. Its recent spin-off may tremendously expand the company’s position in the technology industry. Jacobs Solutions Inc. (NYSE:J) is set to merge its Critical Mission Solutions and Cyber & Intelligence Government Services Businesses with Amentum. This will make Jacobs a pure-play technology company, creating new and improved opportunities for its employees.
On the financial front, Jacobs Solutions generated $10.9 billion in revenue in FY 2023, excluding segments to be merged. Total revenue for the business was $16 billion, showcasing how crucial and dominant its tech line is. Analysts are bullish on J and its future growth potential. Their 12-month median price target of $165 points to a 10% upside from current levels.
7. Amazon.com Inc (NASDAQ:AMZN)
Soros Fund Management’s Stake Value: $56.21 Million
Number of Hedge Fund Holders: 308
Amazon.com Inc (NASDAQ:AMZN) is a technology company that specializes in e-commerce, online retail, streaming, and data cloud services. Its e-commerce platform is functional in 20 countries and ships to over 100 countries. Its proprietary cloud service, Amazon Web Services, on the other hand, is used by millions of active customers and has over 130,000 AWS partners across 200 countries.
The company was first launched in 1994 and is on track to capture over 40% of the e-commerce market in the United States. As for its cloud segment, Amazon Web Services (AWS) increased its revenue by 17.2%, year-over-year in Q1 to 18.8% in Q2. AWS has logged 30% plus operating margins consistently for the past five quarters, making it a star performer.
Amazon.com Inc (NASDAQ:AMZN) is also making strides on the AI front. Over the past few months, the company has partnered with AI startups like Anthropic and signed deals with the US government to test new AI models. As for AI hardware, the company has produced several AI chips to reduce its dependence on other companies.
Amazon’s growth is undeniable which explains its position in Soros’s portfolio. Analysts are bullish on AMZN and their 12-month median price target of $220 points to a 16% upside from current levels. Overall, AMZN was held by 308 hedge funds and Fisher Asset Management was the largest shareholder.
Diamond Hill Select Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter:
“Among our top individual contributors in Q2 were Amazon.com, Inc. (NASDAQ:AMZN), Texas Instruments and Mr. Cooper Group. Internet retail and cloud infrastructure company Amazon is benefiting from strong profitability, particularly in its Amazon Web Services (AWS) business. Shares also received a boost amid growing optimism around the demand for AWS as Amazon customers’ investments in generative AI projects continue growing.”
6. Accenture plc (NYSE:ACN)
Soros Fund Management’s Stake Value: $60.75 Million
Number of Hedge Fund Holders: 68
Accenture plc (NYSE:ACN) is one of the best growth stocks to buy according to George Soros which makes up 1.1% of his portfolio. Soros increased his position in the stock by 105% in the second quarter of 2024. Accenture plc (NYSE:ACN) is a multinational professional services company that helps entities of all sizes optimize their operations and boost revenue growth.
The company is home to over 750,000 employees who provide services to over 9,000 clients in 120 countries from across the globe. The company specializes in helping customers build their cloud, cybersecurity, AI, and enterprise capabilities.
To expand its offerings and to benefit from the AI wave, the company recently purchased Excelmax Technologies from India, a semiconductor design services provider. The acquisition added another 450 employees to the company in crucial departments including physical design, logic design, and verification. Later in July, Accenture plc (NYSE:ACN) acquired Camelot Management Consultants, a SAP-focused management and consulting firm in Germany, that specializes in supply chain, data, and analytics.
Accenture’s (NYSE:ACN) economic moat lies in its strong footing in the IT and consulting sector supported by its ability to buy out competition. This explains why 68 hedge funds were bullish on the stock at the end of Q2 2024 with total stakes amounting to $3.7 billion.
Polen Focus Growth Strategy stated the following regarding Accenture plc (NYSE:ACN) in its Q2 2024 investor letter:
“Autodesk and Accenture plc (NYSE:ACN) were also notable absolute detractors in the quarter. For Accenture, the past year has proven to be a weak backdrop for the IT services industry as enterprises rationalize their IT budgets and defer spending on discretionary, shorter-cycle deals. Accenture has not been immune to this broader weakness, as evidenced by slowing growth in recent quarters. However, we would note that later in the quarter, the stock responded very positively to results that showcased AI bookings growing rapidly, though still a small portion of overall bookings. Additionally, as we head into 2025, growth comparisons should ease considerably.”
5. Booking Holdings Inc. (NASDAQ:BKNG)
Soros Fund Management’s Stake Value: $64.72 Million
Number of Hedge Fund Holders: 96
Booking Holdings Inc. (NASDAQ:BKNG) ranks fifth on our list of the best growth stocks by George Soros. The online travel company offers a platform where users can make travel reservations, make accommodation reservations, rent cars, and buy vacation packages. The holdings company runs multiple subsidiaries including Agoda, Booking.com, Priceline.com, and Kayak, among others.
The company provides services in more than 220 countries and is available in more than 40 languages. For the year ended 2023, Booking Holdings Inc. (NASDAQ:BKNG) logged $150.6 billion in travel bookings, up 24% year over year. In addition to that, over 1 billion room nights were booked across all platforms.
In the second quarter of 2024, the company booked over 287 million room nights across all platforms and logged revenue worth $5.9 billion, both up by 7% year-over-year. Air bookings on the other hand increased by 28% year-over-year. The company’s competitive edge is its strong travel ecosystem that offers a complete travel package all under the same roof. Such explains why Booking Holdings Inc. (NASDAQ:BKNG) facilitated 28 million reported accommodation listings, including 6.6 million homes and apartments, in 2023.
Wedgewood Partners stated the following regarding Booking Holdings Inc. (NASDAQ:BKNG) in its Q2 2024 investor letter:
“Booking Holdings Inc. (NASDAQ:BKNG) contributed to performance as travel spending across the U.S. and Europe remains quite healthy, whereas the Company took share in alternative accommodations, and looks set to expand margins after a few years of reinvestment. The Company has also been aggressively reducing its share count at reasonably attractive valuation multiples. Booking should be able to compound earnings at an attractive, double-digit rate for the next few years given these various initiatives.”
4. Alibaba Group Holding Limited (NYSE:BABA)
Soros Fund Management’s Stake Value: $73.80 Million
Number of Hedge Fund Holders: 91
Alibaba Group (NYSE:BABA) is a technology and internet retail company that operates e-commerce sites that serve both consumers and small business owners. In addition to e-commerce, Alibaba Group (NYSE:BABA) is also involved in cloud computing, logistics, digital media, and entertainment.
Merchants and small business owners use Alibaba.com to buy products such as clothing items, accessories, and shoes for reselling. AliExpress, on the other hand, is a retail site for mass consumers who can purchase all sorts of items such as appliances, office equipment, home improvement, and sports equipment, to name a few. It has over 150 million users and is present in 190 countries.
Alibaba Group (NYSE:BABA) is among the best growth stocks and we say that because its platforms are used by more than 800 million people worldwide. It has a 40% share in the Chinese e-commerce market, as per estimates by the DBS Bank in Hong Kong. In the fiscal first quarter of 2025, the group reported revenue worth $34.4 billion, up 4% year-over-year.
One may ask how Alibaba Group is managing to increase order volumes amid fierce market competition. The answer is simple, providing premium customer shopping experiences at the lowest price possible. AliExpress allows shoppers to source products directly from factories, shrinking the supply chain.
Despite macro headwinds and geopolitical turmoil in the country, analysts are bullish on the stock, and their 1-year median price target of $111.39 points to a 26% upside from current levels. Overall, BABA was held by 91 hedge funds at the close of Q2 2024 with total stakes amounting to $3.81 billion. As of June 30, Appaloosa Management LP was the largest shareholder with a position worth $756 million.
O’keefe Stevens Advisory stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q2 2024 investor letter:
“We initiated two new positions during the quarter: Alibaba Group Holding Limited (NYSE:BABA) and Perrigo (PRGO). Both have seen their stocks decline over 70%+ from their all-time highs.”
3. Liberty Broadband Corporation (NASDAQ:LBRDA)
Soros Fund Management Stake Value: $76.19 Million
Number of Hedge Fund Holders: 55
Liberty Broadband Corporation (NASDAQ:LBRDA) is a communications business that specializes in the provision of cable, data, wireless, and other managed services. The stock makes up 1.36% of the portfolio. The company operates and owns multiple communication businesses including Charter Communications and GCI, its subsidiary.
GCI is one of the biggest communications providers in Alaska. It specializes in the provision of data, wireless, video, voice, and managed services to consumer and business customers across Alaska and the globe. Liberty, on the other hand, owns a 26% ownership stake in Charter Communications. Charter Communications is one of the largest cable operators in the United States that provides video, internet, and voice services to residential and commercial clients.
In the second quarter of 2024, Liberty Broadband Corporation (NASDAQ:LBRDA) logged $246 million in revenue, up by 1% year-over-year. Of this, its data segment brought in $60 million and its wireless segment reported $47 million in revenue. In the second quarter, its subsidiary, GCI spent $58 million in capital expenditures to enhance its wireless and data networks in Alaska, which explains why the company has a clientele of 158,000 customers for its data segment and 201,900 for its wireless segment.
Analysts are bullish on the stock, and their 1-year median price target of $83 points to a 39% upside from current levels. At the close of Q2 2024, 55 hedge funds were bullish on Liberty Broadband Corporation (NASDAQ:LBRDA), with total stakes amounting to $2.02 billion.
Weitz Investment Management Partners III Opportunity Fund stated the following regarding Liberty Broadband Corporation (NASDAQ:LBRDA) in its Q2 2024 investor letter:
“Liberty Broadband Corporation (NASDAQ:LBRDA) (26% owner of Charter Communications) was the Fund’s top year-to-date detractor. Shares of Charter Communications remain in the penalty box as investors wait to see how the mid-May expiration of the federal Affordable Connectivity Program (ACP) impacts subscriber results. We anticipate Charter will retain many, if not most, of its five million ACP customers, but we acknowledge this uncertainty has created an added overhang on the stock price. Beyond this one-time event, we believe the long-term picture for Charter remains intact.”
2. Alphabet Inc. (NASDAQ:GOOGL)
Soros Fund Management Stake Value: $166.02 Million
Number of Hedge Fund Holders: 216
Alphabet Inc. (NASDAQ:GOOGL) is one of the best growth stocks to buy according to Soros. The company owns a range of products, including Google Search, Google Maps, YouTube, Google Cloud, and Wyamo. The technology giant is well-positioned to exploit the next wave of artificial intelligence and innovation, making it a solid investment.
Google DeepMind, the company’s research lab is relentlessly working to improve the Gemini experience and is also actively involved in developing AI hardware, and launched its NVIDIA chip rival in May. Moreover, the latest version of Gemini has accelerated performance across text, audio, video, and code.
While Google’s tensor processing units (TPU) only account for almost 20% of the market, its advancements promise higher market shares. Moreover, its six-generation chips are 67% more energy efficient compared to the previous generation of processors. The new chip will be made available to Google Cloud users by the end of 2024.
Overall, the company’s new AI models and algorithms are 100 times more efficient compared to 18 months ago. Additionally, over 60% of generative AI startups and 90% of generative AI unicorns are customers of the Google Cloud. Alphabet Inc. (NASDAQ:GOOGL) expects to log $100 billion in revenue run rate from YouTube Ads and Google Cloud by the end of 2024. In addition to that, in the second quarter, cloud revenue increased by 28.8% and overall revenue increased by 13.59%.
Analysts are bullish on GOOGL and their 12-month median price target of $205 points to a 26% upside from current levels. Overall, 216 investors held stakes worth $35.31 billion in Alphabet Inc. (NASDAQ:GOOGL). Of those, Fisher Asset Management was the highest stakeholder with a position of $8.86 billion.
Patient Capital Management mentioned Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter“
“Alphabet Inc. (GOOGL) was a top contributor in the second quarter, finally catching up to its peers in the Magnificent 7. The company gained 20.8% in the period following strong first quarter earnings, a new $70B repurchase program (3% of shares outstanding) and the initiation of a cash dividend ($0.20 per share; 0.42% yield). We continue to believe the market underappreciates Google’s exposure to AI with its Gemini model being integrated into search results, YouTube advertising and its cloud offering. We continue to think that the cloud players will be the AI winners in the long-term, with Google being well positioned to take advantage. While the company trades at 24x 2024 earnings, if you remove the money-losing and under-earning businesses, you realize that you are paying below a market multiple for the core Google business. We do not believe there are many other AI winners trading at such an attractive multiple.”
1. AstraZeneca PLC (NASDAQ:AZN)
Soros Fund Management Stake Value: $191.20 Million
Number of Hedge Fund Holders: 49
AstraZeneca PLC (NASDAQ:AZN) ranks first on our list of the best growth stocks by George Soros, accounting for 3.43% of his portfolio. Soros increased his position in the stock by 513% from the previous quarter. AstraZeneca PLC (NASDAQ:AZN) is a pharmaceutical company headquartered in Cambridge, United Kingdom.
In the second quarter of 2024, the company logged $25.62 billion in revenue, up by 18%. Of this, product revenue was $24.6 billion, accounting for 96% of total sales. For the fiscal year 2024, AstraZeneca PLC (NASDAQ:AZN) expects revenue to grow by mid-teen percent.
In the first half of 2024, the company spent $799 million in capital expenditures and expects total capex for 2024 to increase by 50% due to increasing capacity and capabilities. After garnering tremendous attention for its COVID-19 vaccine, the company is now racing to find a cure for cancer. Its oncology department is currently focusing on six scientific platforms to find a treatment for cancer with the lowest mortality rate.
AZN’s focus on giving back to society explains why 49 hedge funds were bullish on the stock at the end of Q2 2024 with total stakes amounting to $2.33 billion. Based on ratings from 30 analysts, the stock’s price target represents an upside of 16% from its current level.
Baron Funds, an investment management company, released its second-quarter 2024 investor letter where it talked about AstraZeneca PLC (NASDAQ:AZN):
“Performance in pharmaceuticals and health care distributors was bolstered by solid gains from AstraZeneca PLC (NASDAQ:AZN) and McKesson Corporation, respectively. AstraZeneca is a global biopharmaceutical company with a focus on three main therapy areas based on its core competencies: oncology, cardiovascular and metabolic diseases, and respiratory illnesses. AstraZeneca’s shares increased given incremental positive news flow (LAURA, ADRIATIC, and DESTINY-Breast06 clinical trials) surrounding the oncology franchise. The company also published long-term guidance for the first time, projecting $80 billion in revenue by 2030, or 75% higher than 2023’s $45.8 billion. This projection implies an annual growth rate of 8% over seven years, compared with the 5% to 7% targets set by GSK and Johnson & Johnson and the 5% target set by Novartis.”
Overall, AZN ranks first among the 10 best growth stocks according to George Soros. While we acknowledge the potential of healthcare companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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