5 Best Multibagger Stocks to Buy Now

In this article, we discuss the 5 best multibagger stocks to buy now. To read the details about our prior multibagger stocks, go to 10 Best Multibagger Stocks to Buy Now.

5. Spotify Technology S.A. (NYSE:SPOT)

Number of Hedge Fund Holders: 68

1-Year Share Price Gain as of April 19: 106.88%

Spotify Technology S.A. (NYSE:SPOT) offers audio streaming subscription services all over the globe. As of April 19, the stock price increased 106.88% during the last 12 months and it is one the best multibagger stocks to buy now. On April 18, Benchmark analyst Mark Zgutowicz raised the price target on Spotify Technology S.A. (NYSE:SPOT) to $325 from $290 and maintained a Buy rating on the shares.

Hedge fund sentiment was positive toward Spotify Technology S.A. (NYSE:SPOT) in Q4 of 2023 as hedge funds with investments in the stock were 68 in the quarter, with positions worth $2.635 billion. This is compared to 53 funds with positions worth $1.3 billion in the prior quarter. Ken Griffin’s Citadel Investment Group is the top investor in the company as of Q4 of 2023. In the quarter, the firm increased its stake by a whopping 3128% to 1.656 million shares worth $311.169 million.

Artisan Partners commented on Spotify Technology S.A. (NYSE:SPOT) in its first quarter 2024 investor letter:

“Among our top Q1 contributors were Chipotle, Shockwave Medical and Spotify Technology S.A. (NYSE:SPOT) is a leading global audio streaming franchise with 600 million monthly active users. We believe its position in the supply chain is solid given a secular trend around the fragmentation of music as well as internal product and pricing initiatives. Shares rallied after the company reported strong earnings results, including growth of 23% for monthly active users, 15% for premium subscribers and 16% for revenue. The company also reported 140bps of gross margin expansion, to 26.7%, which we believe still has further to go due to likely price increases, potentially better terms with labels and further cost discipline.”

4. Vertiv Holdings Co (NYSE:VRT)

Number of Hedge Fund Holders: 75

1-Year Share Price Gain as of April 19: 511.33%

Vertiv Holdings Co (NYSE:VRT) is an Ohio-based company that offers critical digital infrastructure technologies and life cycle services. In Q4 of 2023, 75 hedge funds held positions in Vertiv Holdings Co (NYSE:VRT), and their total stakes amounted to $3.101 billion. As of the fourth quarter of 2023, Philippe Laffont’s Coatue Management is the most dominant shareholder in the company with a position worth $663.383 million. As of April 19, the share price of Vertiv Holdings Co (NYSE:VRT) went up 511.33% in the past 12 months.

9 analysts have covered Vertiv Holdings Co (NYSE:VRT) over the last three months with an average price target of $86.13, showing an upside of 14.82% on April 19.

Artisan Mid Cap Fund stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its first quarter 2024 investor letter:

“During the quarter, we initiated new GardenSM positions in DoorDash, GoDaddy and Vertiv Holdings Co (NYSE:VRT). Vertiv is an industrial power equipment company primarily serving the data center market with a global supply chain in cooling, power, controls and services. Rising AI-driven GPU use in data centers has spiked the need for efficient thermal management solutions, an area where Vertiv is particularly strong. Cooling, which consumes ~25% of data center energy, is a significant, recurring operational cost. We believe Vertiv is well positioned to benefit from a multiyear profit cycle in data center construction activity and a mix shift toward GPU-based data centers (which consume 2X–3X more power).”

3. Uber Technologies, Inc. (NYSE:UBER)

Number of Hedge Fund Holders: 129

1-Year Share Price Gain as of April 19: 119.68%

Uber Technologies, Inc. (NYSE:UBER) offers its services through three segments, Mobility, Delivery, and Freight. The stock is among our best multibagger stocks to buy now and Uber Technologies, Inc. (NYSE:UBER) is higher by 119.68% in the last twelve months, as of April 19.

Uber Technologies, Inc. (NYSE:UBER) was part of 129 hedge funds’ portfolios in the fourth quarter of 2023 with a total stake value of $8.743 billion. D E Shaw is the most prominent shareholder in the company and has a position worth $886.123 million as of Q4 of 2023.

Uber Technologies, Inc. (NYSE:UBER) was mentioned in RiverPark Advisors’ fourth quarter 2023 investor letter:

“Uber Technologies, Inc. (NYSE:UBER): UBER was a top contributor in the quarter following better than expected 3Q23 earnings and 4Q23 guidance. Gross bookings of $35.3 billion were up 21% year over year. Mobility gross bookings of $17.9 billion grew 30% over last year driven by a combination of product innovation and driver availability. Delivery gross bookings of $16 billion were up 16% from last year and continued to be strong throughout the quarter. 1Q Adjusted EBITDA of $1.1 billion, up $576 million year over year, was better than management’s guidance of $1 billion, and the company generated $900 million of free cash flow, up from $358 million last year. Management guided to continuing growth in 4Q Gross Bookings (23.5% growth) and Adjusted EBITDA (of $1.2 billion).

UBER remains the undisputed global leader in ride sharing, with a greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates.1 Moreover, after a history of losses, the company is now profitable, delivering expanding margins and substantial free cash flow. We view UBER as more than a ride sharing and food delivery service; we also see it as a global mobility platform with 142 million users (by comparison, Amazon Prime has 200 million members) and the ability to penetrate new markets of on-demand services, such as package and grocery delivery, travel, and hourly worker staffing. Given its $5.2 billion of unrestricted cash and $5.1 billion of investments, the company today has an enterprise value of $128 billion, indicating that UBER trades at 21x our estimates of next year’s free cash flow.”

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2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 173

1-Year Share Price Gain as of April 19: 181.14%

NVIDIA Corporation (NASDAQ:NVDA) is a provider of graphics, computing, and networking solutions. In the fourth quarter of 2023, 173 hedge funds had stakes in NVIDIA Corporation (NASDAQ:NVDA), with total positions worth $33.76 billion. GQG Partners is the most significant shareholder in the company with a stake worth $6.88 billion, as of December 31, 2023.

As of April 19, NVIDIA Corporation’s (NASDAQ:NVDA) gained 181.14% in the past twelve months. The stock has a consensus Buy rating among 39 analysts and its average price target of $1,004.92 implies an upside of 31.88% from the last price of $762.00.

Polen Capital commented on NVIDIA Corporation (NASDAQ:NVDA) in its first quarter 2024 investor letter:

“The 9% growth we estimate for the Index includes the hefty weightings in high-growth names like NVIDIA Corporation (NASDAQ:NVDA)and Tesla. With NVIDIA in particular, we believe it alone accounted for over four points of the Index’s 11.41% return in the first quarter of 2024.

Said another way, excluding NVIDIA, the Index would have underperformed our Portfolio by about 100 basis points based on Bloomberg attribution analysis. We have spoken at length about the cyclicality of NVIDIA’s business and the potential for significant changes in its revenue and earnings growth from year to year. Still, as long as growth rates remain high and generative AI remains in focus, market participants seem more than willing to continue to rush in to invest…” (Click here to read the full text)

1. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 242

1-Year Share Price Gain as of April 19: 125.78%

Meta Platforms, Inc. (NASDAQ:META) operates through the Family of Apps and Reality Labs segments. Meta Platforms, Inc.’s (NASDAQ:META) share price is up by 125.78% in the last 12 months, as of April 19. The stock tops our list of best multibagger stocks to buy now.

242 hedge funds held positions in Meta Platforms, Inc. (NASDAQ:META) at a total stake value of $50.88 billion in the fourth quarter of 2023. As of December 31, 2023, GQG Partners is the biggest shareholder in the company with a position worth $3.9 billion.

Diamond Hill Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its fourth quarter 2023 investor letter:

“Other top Q4 contributors included Meta Platforms, Inc. (NASDAQ:META) and Microsoft. Social media platform Meta’s digital ad revenues increased during the quarter, while it continued cutting costs — a combination which generated better-than-expected revenues and profits. Shares of software and information technology services provider Microsoft rose as its Azure cloud business continues growing and the company continues capitalizing on its attractive recurring revenue-based model to drive growth.”

Should you invest $1,000 in Uber Technologies, Inc. (NYSE:UBER) right now?

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Disclosure: None. You can also look at the 11 Best Low Price Pharma Stocks To Invest In and 15 Best Places to Retire in Maryland.

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