In this article, we discuss the Top 10 Kid-Friendly Stocks to Buy According to Billionaires.
The market has been undergoing a volatile spell these past few days. Economic data from the Federal Reserve Bank of New York indicates a pattern in which stock markets reacted negatively to President Trump’s tariff announcements against China in 2018 and 2019. Current market behaviour in 2025 suggests a similar, potentially more widespread, response to new trade policies. Markets have been underperforming for the first quarter of 2025, considering that the wider market fell by over 10% and the tech-heavy NASDAQ plummeted by more than 15%. The Cboe Volatility Index (aka VIX) is currently at 52.33%, compared to 17.93% at the start of the year.
The year 2025 began with the revelation of DeepSeek, an AI program developed in China, which rivalled AI technology in the US Tech sector. DeepSeek requires lesser processing power, which means lower costs and improved results for users. The market immediately saw investors take on a bullish outlook, short-selling stocks before any further impact on their portfolios.
In the second month of 2025, the US government’s first round of Tariffs was aimed directly at China in an effort to curb the impact of DeepSeek on the United States’ tech industry. In March, President Trump announced a rate of 54% tariff on Chinese goods, while China retaliated with 34% tariffs on US goods and services.
DW (Deutsche Welle) reported that President Trump approved 20% tariffs on European goods & services in the latest round of “Trump Tariffs”. Foreign investors, specifically from European countries, were quick to divest their portfolios. The US economy is considered to be entering “continuous stagflation”, which is defined as continued inflation with very low growth and high unemployment.
This scenario has prompted investors to reconsider their future investment strategies. Several reports point out a growing trend among parents who are actively setting aside funds to safeguard their children’s financial future. Survey results of 2000 UK investors over 18 years of age, published by the international adviser, stated that 44% of parents were stressed about making the right investment decisions regarding their children. 35% worry that they have not saved sufficiently to ensure their children’s financial future. In an interview with CNBC, Stacy Francis, the President & CEO of Francis Financials in New York, spoke on how parents can educate their children on investing:
“Make sure that money can be talked about, that there’s no taboos…so that your children are learning those really good financial literacy skills that they need to set themselves up for success for the rest of their life.”
Investing in the markets for your children’s future has the advantage of time. In a report by MorningStar, investments in stocks have the added benefit of compounding return, which means the earlier you start, the more time your investments have to grow exponentially. CNBC reported on billionaire investor Mark Cuban and how he made billions from his first few million with a long-term view on his investments. Given this, we will take a look at some of the best kid-friendly stocks to buy.
Pixabay/Public Domain
Our Methodology
To compile this list, we thoroughly reviewed reputable sources and gathered the stocks they collectively favored. These stocks have a long-standing history of performance, with strong balance sheets and sound financials. Then, we used Insider Monkey’s proprietary database of billionaire stock holdings to arrive at our list of 10 best kid-friendly stocks to buy according to billionaires as of Q4 2024. For the stocks with the same number of billionaire holdings, we have used the total value of billionaire holdings as a secondary metric to rank the stocks. Billionaires are founders or managers of some of the world’s leading hedge funds and companies.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Mattel, Inc. (NASDAQ:MAT)
No. of Billionaires: 10
Value of total Investment by Billionaires: $0.229 billion
Mattel, Inc. (NASDAQ:MAT) is a toy and family entertainment powerhouse with operations worldwide. The company designs, manufactures, and markets a vast portfolio of iconic toy brands, including Barbie, American Girl, Disney Princess, Monster High, Polly Pocket, Hot Wheels and Matchbox, Fisher-Price, and Thomas & Friends. It also produces action figures, building sets, and games featuring brands such as Masters of the Universe, MEGA, UNO, Jurassic World, and WWE, alongside licensed properties from Disney, Microsoft, and NBCUniversal. With a rich history and a diverse array of beloved brands, Mattel, Inc. (NASDAQ:MAT) is perhaps one of the best kid-friendly stocks.
For the period ending Q4 2024, Mattel, Inc. (NASDAQ:MAT) reported a revenue of $1.65 billion, $20.3 million above expectations, with an EPS of $0.35. Ynon Kreiz, Mattel’s Chairman and Chief Executive Officer, commented on the company’s performance, stating:
“Execution on our toy strategy was strong and we grew global market share in key categories of dolls, vehicles, and games. We also made meaningful progress on our entertainment strategy across film, television, digital, consumer products, and live experiences.”
Mattel, Inc. (NASDAQ:MAT) is expected to have a turbulent 2025, with inflation forecast to slow down consumer spending on toys. Trade tariffs will also hit sales, as major manufacturing hubs China and Vietnam are slammed with tariffs of 54% and 46%, respectively. It must be noted that despite these ongoing tariff wars, analysts continue to have a positive outlook on the stock. Mattel, Inc. (NASDAQ:MAT) has a twelve-month average trading share price of $25.58, an upside of 74.55%.
9. Roblox Corporation (NYSE:RBLX)
No. of Billionaires: 10
Value of total Investment by Billionaires: $2.269 billion
Roblox Corporation (NYSE:RBLX) is a video game developer that allows users to explore 3D experiences. Roblox Studio is a free toolset that allows developers and creators to build, publish, and operate 3D experiences and other content. The company is popular among users as a gaming platform & connecting with other users online. It is among the best kid-friendly stocks to invest in.
For the final quarter of 2024, Roblox Corporation (NYSE:RBLX) reported an average of 85.3 million daily active users (DAUs) worldwide. This represents a 19% increase year-over-year compared to the 71.5 million DAUs in the fourth quarter of 2023. In terms of financials, the company had a topline of $1.36 billion (up 20.84% YoY) and an EPS of $0.11.
Roblox Corporation’s (NYSE:RBLX) business model utilizes in-app advertising to boost revenue. The company announced an advertising promotion in collaboration with Google, which will allow brands and agencies to purchase the new Rewarded Video ads on Roblox. This new revenue model is expected to further boost the company’s topline in the year 2025. The company provided guidance on revenue for the upcoming first quarter of 2025 revenue to range between $5.2 to $5.3 billion, a growth rate of 20% YoY. Roblox Corporation (NYSE:RBLX) attributes this to international markets, including Asia, Latin America, Europe, and Japan, along with their “Aging up” campaign. This is aimed at the company’s strategic push to retain its original audience- now entering their teens and early twenties. Analysts following the stock on Wall Street have a positive outlook on the stock, with a consensus on the twelve-month trading price at $66.78, an upside of 30.92%.
8. McDonald’s Corporation (NYSE:MCD)
No. of Billionaires: 14
Value of total Investment by Billionaires: $0.830 billion
McDonald’s Corporation (NYSE:MCD) is a global leader in the food service industry. The company operates and franchises McDonald’s restaurants worldwide, offering a diverse menu of food and beverages. McDonald’s utilizes various franchising models, including conventional franchises and developmental licenses, to expand its global reach. It is a household name, especially in the United States, with brands such as McChicken, BigMac, and many more under its umbrella.
McDonald’s Corporation (NYSE:MCD) experienced a turbulent year-end. The United States food industry was in peril following news of an E. coli outbreak. As a result, negative goodwill towards the aforementioned brands was inevitable. The Q4 2024 earnings report revealed a drop in sales by 28% YoY to $6.93 billion and an EPS of $2.83. Chairman and CEO of MCD, Chris Kempczinski, spoke on the company’s performance during the earnings call, stating:
“First, we have the right strategy, accelerating the Arches. Our MCD growth pillars still offer significant growth opportunities and I’m pleased with the 2025 market plans, particularly their balance of value and full margin food innovation.
Second, the US food safety issue is now largely behind us and we expect to have fully recovered by the beginning of Q2.”
McDonald’s Corporation (NYSE:MCD)’s cash position makes it one of the best kid-friendly stocks on our list. At the end of FY24, the company had approximately $1 billion available in cash and cash equivalents. Due to this cash generation, it has raised its dividends for 48 consecutive years, which is not an easy feat to achieve.
7. Comcast Corporation (NASDAQ:CMCSA)
No. of Billionaires: 14
Value of total Investment by Billionaires: $3.09 billion
Comcast Corporation (NASDAQ:CMCSA) is a global media and technology conglomerate operating through five key segments. The company houses brands such as NBC and Telemundo. It also manages international networks like Sky Sports and Sky’s film and television production and distribution, theme parks across the US, Japan, and China, and online streaming platforms, along with interests in the Philadelphia Flyers and Wells Fargo Center. CMCSA’s earnings for the final quarter of 2024 revealed a revenue of $31.92 billion, clearing expectations by $291.5 million. EPS was $0.96, beating estimates by $0.10.
According to a report by Nielsen, TV viewership continued to decline in February 2025, while streaming services continued to grow. Broadcast viewership and cable viewership declined by 1.3% and 1.2%, respectively. This is a rising trend in the television industry and is considered a threat to CMCSA’s business model. President Mi spoke during the earnings call report, emphasizing his belief in the company’s strategy, specifically streaming & data services, and Park’s performance. This is what he said:
“Our TV studios ended the broadcast season with more top 10 series than any other studio. And finally, in our Destinations & Experiences business, we finished the year strong across our parks globally after having experienced some temporary headwinds in the middle of the year. Our team stayed hard at work preparing for the opening of Epic Universe in May of this year.”
Comcast Corporation (NASDAQ:CMCSA) has a robust fan following, especially due to its streaming of the NFL, the Olympics, the Premier League, NASCAR, golf, and later this year, the NBA, making it one of the best kid-friendly stocks worldwide.
6. NIKE, Inc. (NYSE:NKE)
No. of Billionaires: 14
Value of total Investment by Billionaires: $3.095 billion
NIKE Inc. (NYSE:NKE) is a global leader in the athletic goods industry. The company designs, develops, markets, and sells a wide range of athletic footwear, apparel, equipment, accessories, and services worldwide under prominent brands such as NIKE, Jumpman, Converse, and Chuck Taylor. These brands are considered household names for both children & parents/ adults alike.
In the Q3 2025 earnings report, NIKE Inc. (NYSE:NKE) revenue was $11.27 billion, down 9.33% YoY, although beating analyst estimates by $231.5 million. EPS was $0.54, also beating estimates by $0.25. The company attributes the decline in sales to rising inflation, high tariffs but remains a market leader in high-quality athletic goods. It is among the best kid-friendly stocks to invest in.
Recent declines in international markets such as the Middle East, Europe, and Asia (including China & Vietnam) were the result of reduced buying by price-conscious consumers. As per the United States International Trade Commission (USITC), China is the largest importer of shoes from the United States at 37%, while Vietnam is responsible for 29.8%. China was hit with the aforementioned 34% trade tariffs, while Vietnam was hit even harder with 46%. This is likely to further impact NIKE Inc. (NYSE:NKE)’s overall revenue figure. Experts consider these conditions as an optimal time to invest in the stock to take advantage of the lower price.
5. The Walt Disney Company (NYSE:DIS)
No. of Billionaires: 19
Value of total Investment by Billionaires: $3.19 billion
The Walt Disney Company (NYSE:DIS) is a global entertainment powerhouse with brands such as ABC, Disney, FX, Fox, and National Geographic, producing original content through studios like Lucasfilm, Marvel, Pixar, and Walt Disney Pictures. It specializes in direct-to-consumer streaming services like Disney+, Disney+ Hotstar, Hulu, and ESPN. It also operates parks and resorts worldwide, including Walt Disney World, Disneyland, and international locations, alongside Disney Cruise Line and Vacation Club.
The Walt Disney Company (NYSE:DIS) has a proven history as not just an entertainment powerhouse but a dynamic and competitive player in the industry. The company has adapted from its humble beginnings of black and white images from 1920 to becoming an entertainment business that incorporates AI in its creative process. Bears of the stock highlight headwinds that will impact the company’s performance, notably, theatrical films will never return to levels before COVID-19, high production budgets are in the hundreds of millions, volume of content is high, which is met with a shrinking audience.
In the first quarter of 2025, The Walt Disney Company (NYSE:DIS) announced a revenue of $24.69 billion, beating estimates by $143.28 million, and an EPS of $1.76 compared to estimates of $1.43. Analysts bullish on the stock recognize these factors and continue to support the price of the stock. The company’s brands are synonymous with homes across the globe, not to mention its acquisition of other brands with strong fan followings, such as Lucasfilm in 2012.
4. Spotify Technology S.A. (NYSE:SPOT)
No. of Billionaires: 17
Value of total Investment by Billionaires: $4.58 billion
Spotify Technology S.A. (NYSE:SPOT) is a leading global audio streaming subscription service. It operates through two primary segments: Premium and Ad-Supported. Spotify is considered a kid-friendly stock due to its dedicated service, Spotify Kids, designed for children and younger teenagers. This ad-free service offers curated playlists, audiobooks, and other kid-friendly content, making it a safe and enjoyable platform for children to listen to music and other audio programs.
During the period ending Q4 2024, Spotify Technology S.A. (NYSE:SPOT)’s revenue was $4.41 billion (up 11.58% YoY), beating estimates by $128.52 million, while EPS missed estimates by $0.34 at $1.83. Management attributed the growth to audiobook surcharges, favourable content cost trends, and improved margins. Co-founder and Chief Executive Officer Daniel Ek spoke on the company’s performance during the earnings call, stating:
“We enhanced our product in areas like video and audiobooks with many more innovations to come in the quarters ahead. And it’s really this ongoing commitment to incremental progress that ultimately adds up to something massive over the long-term, even if the exact timing sometimes is hard to predict.
Another huge driver behind our MAU (Monthly Average User) and subscriber growth was our annual Wrapped campaign, which celebrated 10 years.”
3. Apple Inc. (NASDAQ:AAPL)
No. of Billionaires: 21
Value of total Investment by Billionaires: $101.6 billion
Apple Inc. (NASDAQ:AAPL) is a global technology giant specializing in the design, manufacturing, and marketing of a wide range of consumer electronics and related services. The company’s large product lines include the iPhone, Mac, iPad tablets, AirPods, Apple Watch, and Apple TV. The App Store serves as a central hub for digital content and applications, while the company also provides advertising services, as well as subscription-based offerings such as Apple TV, Apple Music, and financial pay services, namely Apple Card and Apple Pay. These brands are household names across the globe, with children and adults actively utilizing the company’s products and services for daily tasks. It is among the best kid-friendly stocks to invest in.
Apple Inc. (NASDAQ:AAPL) revealed a topline of $124.03 billion for its Q1 2025 earnings, an increase of 3.95% YoY and beating estimates by $273.49 million. EPS was $2.40, narrowly beating expectations by $0.05.
It should be noted that the iPhone sales, which make up the large majority of the company’s revenue stream, were stable at $69.1 billion. Apple Inc. (NASDAQ:AAPL) has been working on a foldable version of its iconic iPhone. Ming-Chi Kuo, an analyst on Apple, reported in September 2024 via X that the company is expecting to finalize designs by the end of this fiscal year. Production and shipping will range between 3 to 5 million units in 2026 and as high as 20 million by 2027.
Bloomberg reported iPhone sales over the first weekend of April 2025 were high as consumers rushed to purchase new phones before the tariffs caused price increases. China accounts for 80% of Apple’s manufacturing capacity. An analyst for the Bank of America, Wamsi Mohan, commented on the impact of tariffs on the company’s valuation:
“In our view, the pullback represents a particularly buying opportunity for investors to own a high-quality name.”
2. Netflix, Inc. (NASDAQ:NFLX)
No. of Billionaires: 25
Value of total Investment by Billionaires: $12.74 billion
Netflix, Inc. (NASDAQ:NFLX) is a global entertainment service provider operating in approximately 190 countries. The company offers streaming access to a vast library of television (TV) series, documentaries, feature films, and games spanning diverse genres and languages. NFLX’s core offering revolves around providing on-demand entertainment content to its members worldwide through a subscription-based model.
Netflix, Inc. (NASDAQ:NFLX) has a vast library of content aimed at children of all ages. Popular franchises, educational content, and original kids’ programming make it a staple in many households with children. It also offers features like parental controls, allowing parents to manage the content their children can access, making it a kid-friendly stock.
For the final quarter of 2024, Netflix, Inc. (NASDAQ:NFLX) reported a topline of $10.52 billion, 16% higher YoY, with an EPS of $4.27. A key metric for Netflix is the number of new subscribers, which rose by 41 million new subscribers in 2024, taking the total subscribers base to 300 million.
1. Alphabet Inc. (NASDAQ:GOOGL)
No. of Billionaires: 33
Value of total Investment by Billionaires: $22.418 billion
Alphabet Inc. (NASDAQ:GOOGL) is a pioneer of the tech sector, a multinational conglomerate delivering a wide array of digital products and platforms across global markets. Its portfolio consists of Google Services, Google Cloud, and Other Bets.
The company boasts a profile that few can rival. In terms of financials, Alphabet Inc. (NASDAQ:GOOGL)’s earnings report for the final quarter of 2024 shows a revenue of $96.47 billion, up 11.77% YoY, while EPS was $2.15. Operating income was reported at $31 billion and net income of $26.5 billion, up 28% and 31%, respectively. The company’s cash reserves are at $95 billion. In terms of business model, the company’s portfolio touches almost every person with a smartphone on the planet. The game changer is its investments in AI. The company’s Chief Financial Officer spoke on investment in AI infrastructure during the earnings call, stating:
“As we mentioned on the Q3 call, as we expand our AI efforts, we expect to increase our investments in capital expenditure for technical infrastructure, primarily for servers, followed by data centers and networking. We expect to invest approximately $75 billion in CapEx in 2025.”
Alphabet Inc. (NASDAQ:GOOGL) is a leader in AI, and its YouTube and Android smartphones dominate their respective markets. Services such as Google Search, YouTube, and Google Maps are widely used by children and their parents for learning, entertainment, and everyday tasks, making GOOGL a top stock on our list of kid-friendly stocks.
Overall, Alphabet Inc. (NASDAQ:GOOGL) ranks first on our list of the best kid-friendly stocks. While we acknowledge the potential of GOOGL, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
