In this article, we discuss 5 best cryptocurrency stocks to buy according to hedge funds. If you want to see more stocks in this selection, check out 11 Best Cryptocurrency Stocks to Buy According to Hedge Funds.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 128
Apple Inc. (NASDAQ:AAPL) is one of the best cryptocurrency stocks to buy. Users can purchase crypto using Apple Pay and Apple has also announced that it is now supporting the Ripple Interledger Protocol. Developer forums suggest that Apple Inc. (NASDAQ:AAPL) could jump into the cryptocurrency space by offering Apple product users a way to mine coins through their IOS/OS devices.
On September 20, Evercore ISI analyst Amit Daryanani raised the price target on Apple Inc. (NASDAQ:AAPL) to $190 from $185 and kept an Outperform rating on the shares after a survey found that demand for high-end iPhone models is “notably higher” compared to prior years.
Among the hedge funds tracked by Insider Monkey, 128 funds reported owning stakes worth $143 billion in Apple Inc. (NASDAQ:AAPL) at the end of June, compared to 131 funds in the prior quarter worth $182 billion. Warren Buffett’s Berkshire Hathaway is the biggest stakeholder of the company, with a position exceeding $122 billion.
Here is what Alger Capital specifically said about Apple Inc. (NASDAQ:AAPL) in its second quarter investor letter:
“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications. computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. The engagement is fostering the growing purchase of high-margin services like music, apps, and apple pay. Apple’s shares detracted from performance as management lowered its guidance for the second quarter due to headwinds from the war in Ukraine, adverse foreign currency shifts, and dampened consumer demand associated with the coronavirus in China. Additionally, many investors were concerned that lockdowns implemented to curtail the spread of COVID-19 would impact production of apple products, however the manufacturing facilities have resumed activity.”
4. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 137
Mastercard Incorporated (NYSE:MA) is an American multinational financial services corporation that offers a Crypto Card Program, which is designed to help customers with simple and real-time use of digital currency for everyday transactions. Mastercard’s Start Path program also helps high-potential blockchain and digital asset companies scale across the world. Mastercard Incorporated (NYSE:MA) is one of the top cryptocurrency stocks to buy.
On September 27, Deutsche Bank analyst Bryan Keane reaffirmed a Buy rating on Mastercard Incorporated (NYSE:MA) with a $440 price target after a discussion with Raj Dhamodharan, the company’s EVP of Blockchain and Digital Currencies. Despite the recent plummeting of cryptocurrency values, Mastercard Incorporated (NYSE:MA) believes the underlying blockchain technology is here to stay and expects multiple blockchain networks to exist with several use cases, the analyst told investors in a research note.
According to Insider Monkey’s Q2 data, 137 hedge funds were bullish on Mastercard Incorporated (NYSE:MA), with collective stakes worth $14.9 billion, compared to 136 funds in the prior quarter worth $15.4 billion. Charles Akre’s Akre Capital Management is the largest stakeholder of the company, with 5.8 million shares valued at $1.8 billion.
Here is what Baron Fintech Fund has to say about Mastercard Incorporated (NYSE:MA) in its Q2 2022 investor letter:
“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Mastercard Incorporated (NYSE:MA) added the most value. These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”
3. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 166
Visa Inc. (NYSE:V) operates as a payments technology company worldwide. Although Visa Inc. (NYSE:V) does not hold cryptocurrency on its balance sheet, it offers a crypto consulting service to clients and has made several investments in crypto platforms as the company continues to support the adoption of digital currencies. Visa Inc. (NYSE:V) is one of the best cryptocurrency stocks to buy.
On August 16, Daiwa analyst Kazuya Nishimura downgraded Visa Inc. (NYSE:V) to Neutral from Outperform with a price target of $225, down from $230. Visa Inc. (NYSE:V) continues to deliver an upbeat growth case given a recovery in cross-border travel, but with border restrictions now almost fully lifted except in some parts of Asia, the analyst sees lower scope for earnings to exceed market expectations. However, he continues to highly regard Visa Inc. (NYSE:V)’s medium-to-long-term growth prospects.
Among the hedge funds tracked by Insider Monkey, Visa Inc. (NYSE:V) was part of 166 public stock portfolios at the end of June 2022, up from 159 in the prior quarter. Chris Hohn’s TCI Fund Management is the biggest stakeholder of the company, with roughly 20 million shares worth close to $4 billion.
Here is what Baron Fintech Fund has to say about Visa Inc. (NYSE:V) in its Q2 2022 investor letter:
“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Visa, Inc. (NYSE:V). These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”
2. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 153
Alphabet Inc. (NASDAQ:GOOG) CEO Sundar Pichai announced in early 2022 that the company is exploring crypto and blockchain potential. The company also invested around $1.5 billion in the blockchain sector between September 2021 and June 2022, making Alphabet Inc. (NASDAQ:GOOG) one of the best cryptocurrency stocks to buy according to hedge funds.
On August 3, Tigress Financial analyst Ivan Feinseth raised the price target on Alphabet Inc. (NASDAQ:GOOG) to $186 from $183 and maintained a Strong Buy rating on the shares, citing his view that recently reported Q2 results reflect the resiliency of its primary business in Cloud and Search. Additionally, continuous investment in Artificial Intelligence will support “increasingly focused and helpful experiences for users and businesses”.
Among the hedge funds tracked by Insider Monkey, Harris Associates is a significant stakeholder of Alphabet Inc. (NASDAQ:GOOG), with 1.75 million shares worth $3.8 billion. Overall, 153 hedge funds were bullish on the stock at the end of Q2 2022, compared to 160 funds in the prior quarter.
Here is what Baron Durable Advantage Fund has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q2 2022 investor letter:
“Alphabet Inc. is the parent company of Google, the world’s largest search and online advertising company. Shares of Alphabet declined 21.6% in the quarter due to concerns about slower global growth impacting the company’s core advertising business. We retain conviction in Alphabet’s merits as it continues to benefit from growth in mobile and online video advertising, which accrues to its core assets of search, YouTube, and the Google ad network. We are further encouraged by Alphabet’s investments in Cloud, AI, and Autonomous Driving (through its Waymo subsidiary).”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ:MSFT) adopted the use of Bitcoin as a payment option back in 2014 through a partnership with Bitpay that allowed users to buy apps and games for Windows Phone, Xbox, and Windows operating systems. Microsoft Corporation (NASDAQ:MSFT)’s first blockchain product, Azure Blockchain Service, was launched in 2015. Azure Blockchain Service made it easier for developers to build applications that use the Bitcoin network.
Wells Fargo analyst Michael Turrin said on September 22 that Microsoft Corporation (NASDAQ:MSFT) introduced multiple new features across the Power Platform and highlighted two primary trends contributing to its focus on the space – the rise of collaborative apps and citizen developers, which Microsoft Corporation (NASDAQ:MSFT) is leaning into more heavily. The analyst has an Overweight rating and a price target of $350 on Microsoft Corporation (NASDAQ:MSFT) shares.
According to Insider Monkey’s Q2 data, 258 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to 259 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management is the largest position holder in the company, with 28.6 million shares valued at $7.3 billion.
Here is what Baron Durable Advantage Fund has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q2 2022 investor letter:
“Shares of Microsoft Corporation, a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues.
As discussed above, we continue to believe Microsoft remains a durable and growing business as companies across all industries look to digitally transform, taking advantage of the continuously expanding solution set Microsoft has to offer.”
You can also take a look at Best Delivery Stocks To Buy and Best Biotech Stocks Under $10.
