In this article, we discuss the 5 best and most active stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Most Active Stocks To Buy Now.
5. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 143
Volume as of February 10: 44.2 million
Uber Technologies, Inc. (NYSE:UBER) owns and runs a ride-hailing platform. Dara Khosrowshahi, the CEO of the firm, recently said that the company plans to allow users to pay for services using cryptocurrency “at some point”. The executive, however, clarified that the crypto space would have to become more environment-friendly and easier to integrate with businesses for this to happen.
Uber Technologies, Inc. (NYSE:UBER). Is one of the favorite stocks in the hedge fund industry. Among the hedge funds being tracked by Insider Monkey, Altimeter Capital Management is a leading shareholder in Uber Technologies, Inc. (NYSE:UBER) with 24 million shares worth more than $1 billion.
RiverPark Advisors, LLC, in its Q4 2020 investor letter, mentioned Uber Technologies, Inc. (NYSE:UBER). Here is what the fund has to say in its letter:
“UBER was also a strong contributor, as shares rallied following the approval of California’s Proposition 22 by voters, allowing the company’s California-based drivers to remain independent contractors (rather than become more expensive employees). We believe this news is not just about the 10%-15% of Uber’s revenue tied to California, but the influence this will have on other states reassessing driver pay. UBER also reported strong third quarter results with Delivery Gross Bookings growing 135% year-over-year which nearly fully offset a reduction in Mobility Gross Bookings, which were down 50% year over year. Total Gross Bookings for the quarter were down only 10% year over year as compared with down 35% last quarter.
Despite the COVID disruption, UBER remains the undisputed global leader in ride sharing (44% of the Company’s third quarter revenue), with greater than 50% share in every major region in which it operates. The company is also a leader in food delivery (46% of revenue), where it is number one or two in the more than 25 countries in which it operates. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its more than 100 million users (by comparison, Amazon Prime has 130+ million members) and penetrate new markets of on-demand services, such as grocery delivery, truck brokerage and worker staffing for shift work. At its current $96 billion market capitalization, UBER trades at only 6x next year’s revenue from its two core businesses. Additionally, the company has substantial, seemingly unrecognized, value in its several nascent development businesses and another $12 billion in equity stakes in synergistic businesses around the world.”
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 120
Volume as of February 10: 46.5 million
Apple Inc. (NASDAQ:AAPL) is a California-based tech giant with core interests in consumer electronics. On February 7, Wedbush analyst Daniel Ives maintained an Outperform rating on the stock with a price target of $200, noting that the purchase of exercise firm Peloton Interactive would be a “major strategic coup” for Apple if it happened.
Apple Inc. (NASDAQ:AAPL) has attracted the interest of elite hedge funds in the past few years. At the end of the third quarter of 2021, 120 hedge funds in the database of Insider Monkey held stakes worth $146 billion in Apple Inc. (NASDAQ:AAPL).
In its Q1 2021 investor letter, Distillate Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:
“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”
3. Affirm Holdings, Inc. (NASDAQ:AFRM)
Number of Hedge Fund Holders: 39
Volume as of February 10: 47.7 million
Affirm Holdings, Inc. (NASDAQ:AFRM) owns and runs a mobile-first commerce platform. Top hedge funds hold large stakes in the company. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Melvin Capital Management is a leading shareholder in Affirm Holdings, Inc. (NASDAQ:AFRM) with 3.2 million shares worth more than $381 million.
Affirm Holdings, Inc. (NASDAQ:AFRM) recently posted earnings for the first fiscal quarter, missing market estimates on earnings per share but beating them on revenue. The guidance for the second quarter, however, failed to impress investors, leading to a sell-off in the stock and a drop in share price following the earnings report.
2. SoFi Technologies, Inc. (NASDAQ:SOFI)
Number of Hedge Fund Holders: 33
Volume as of February 10: 48.7 million
SoFi Technologies, Inc. (NASDAQ:SOFI) is a fintech firm based in California. The firm received regulatory approval to operate as a national bank in January. The firm acquired Golden Pacific Bancorp for the purpose and plans to invest $750 million in the latter to pursue a national digital bank plan while maintaining the present operations of Golden Pacific.
Hedge funds have been selling SoFi Technologies, Inc. (NASDAQ:SOFI). At the end of the third quarter of 2021, 33 hedge funds in the database of Insider Monkey held stakes worth $852 million in SoFi Technologies, Inc. (NASDAQ:SOFI), compared to 39 in the preceding quarter worth $1.7 billion.
In its Q2 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and SoFi Technologies, Inc. (NASDAQ:SOFI) was one of them. Here is what the fund said:
“We invested in SoFi Technologies, Inc., an online consumer finance company or “neobank,” through a SPAC-PIPE transaction. The company was founded in 2011 to refinance student loans into lower interest rates and has since expanded into other financial services, such as bank accounts, debit and credit cards, brokerage, and cryptocurrency trading. We believe that SoFi now has the broadest product suite of any neobank in the U.S., and we view the core lending segment as a differentiated product line that few other neobanks offer. With most competitors targeting un-banked and under-banked individuals, we believe SoFi’s focus on a higher-income demographic coupled with its wide range of products positions it to be one of the leading digital banks. The company’s product breadth enables it to serve customers throughout their lives, such as offering student loan refinancing for new graduates or brokerage accounts when those graduates accumulate savings. SoFi seeks to cross-sell products to existing customers, driving higher customer engagement and retention. SoFi also owns a technology platform called Galileo that is used to power many other neobanks. We believe Galileo gives SoFi attractive exposure to the broader universe of fast-growing consumer FinTech companies. Over time, we expect SoFi to continue adding members and cross-selling additional services, which should drive improving unit economics and earnings growth.”
1. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 65
Volume as of February 10: 95 million
Advanced Micro Devices, Inc. (NASDAQ:AMD) markets semiconductor products. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Advanced Micro Devices, Inc. (NASDAQ:AMD) with 19.6 million shares worth more than $2 billion.
Advanced Micro Devices, Inc. (NASDAQ:AMD) stock has jumped in the past few days after the firm received regulatory approval for the $35 billion acquisition of competitor Xilinx. The fourth quarter earnings of the firm also topped expectations in early February.
In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Advanced Micro Devices, Inc. (NASDAQ:AMD) was one of them. Here is what the fund said:
“We also exited our positions in Advanced Micro Devices. Our investment campaign in Advanced Micro Devices (AMD) began in the second half of 2018, and we have seen a new management team reinvigorate the company’s product portfolio of microprocessors for PCs and servers, graphics processors, and video game consoles. These new, higher-margin products have helped the company partially close its margin gap with peers and capture share from market leader Intel. While we believe there is meaningful runway for further share gains and margin expansion, AMD has appreciated far beyond our mid-cap market cap mandate, and we exited our position.”
You can also take a peek at 15 Best Pharmaceutical Stocks to Invest In and 10 Best Nickel Stocks to Buy Now.
