Below are the 5 best stocks to invest in right now. For a comprehensive list see 10 Best Tech Stocks To Invest In Right Now.
5. Zoom Video Communications, Inc. (ZM)
The video communication company Zoom Video Communications, Inc. (NASDAQ: ZM) is among the 10 best tech stocks to invest in, according to Philippe Laffont.
Although the hedge fund manager sold 1% of Zoom’s stake in the latest quarter, the investment still accounts for 5.92% of the overall portfolio. Zoom Video Communications stock has been among the best performers of 2020 amid a rally of 500%.
Hedge funds have raised their positions in the pandemic darling Zoom Video Communications during the third quarter. Here is what Bill Nygren from Oakmark Funds stated:
“The biggest newcomer to the large-cap list this year was Zoom Video Communications. The company has a market cap of $134 billion and sells at nearly 100 times trailing sales. With so many people working from home, video conferencing has been a lifesaver.”
4. The Walt Disney Company (NYSE:DIS)
The entertainment giant Walt Disney (NYSE: DIS) was hit harder by the pandemic this year. However, Philippe Laffont saw the dip in share price as a buying opportunity.
The hedge fund has raised its stake in Disney by 2% to 9.4 million in the September quarter. It is the fourth largest stock holding of Coatue Management portfolio, accounting for 5.95% of the overall portfolio. We suspect that Laffont sees Disney as an online subscription giant with huge upside potential (and a Netflix competitor). Since he has large positions in both Disney and Netflix, he probably believes the market is large enough for both companies to succeed.
Insider Monkey report shows that Disney has seen a big inflow of smart money in the latest quarter and it is ranked 14th among the 30 most popular stocks among hedge funds.
3. Sunrun Inc. (NASDAQ: RUN)
Philippe Laffont’s hedge fund has made a big bet on the residential solar energy systems developer Sunrun Inc. (NASDAQ: RUN) in the latest quarter.
The hedge fund has bought 9 million additional shares of the solar energy systems developer to increase the overall stake to 17 million shares. The investment is valued at $1.24 billion, accounting for 6.33% of the overall portfolio.
Shares of Sunrun soared 330% in the last twelve months. Despite an impressive stock run, Massif Capital looks bearish over the Sunrun. Here’s what Massif Capital stated about Sunrun in a shareholders letter:
“We laid out our thesis on Sunrun in our first-quarter letter to investors and concluded that while the company had dropped 50% in March, we still felt comfortable holding the short position, this was an error. We re-evaluated that posture in May, following a rapid rise in the stock price, and decided to exit the position as the title wave of liquidity entering the markets seemed more than enough to continue to support a firm dependent on capital markets for cash.”
2. Tesla, Inc. (NASDAQ: TSLA)
The world’s largest electric vehicle maker Tesla, Inc. (NASDAQ: TSLA) is one of the best stocks to invest in according to Philippe Laffont.
After initiating a position in the first quarter this year, the hedge fund has increased its stake in the world’s largest electric vehicle maker by 100% to $1.33 billion. The firm benefitted from a massive Tesla stock price rally of close to 800% this year.
Insider Monkey calculations show hedge funds are bullish on Tesla stock. Here is what Baron Partners Fund stated:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, and energy storage solutions. The stock rose on strong second quarter results, including profitability that beat analyst forecasts and solid growth in existing and new programs across different geographies and vehicles. In addition, Tesla presented a grand vision around its battery research aimed at expanding its competitive advantage and market opportunity. We remain confident that Tesla will leverage its market trend and technology leadership to achieve sustainable long-term growth.”
1. PayPal Holdings, Inc. (NASDAQ: PYPL)
The digital payment transfer company PayPal Holdings, Inc. (NASDAQ: PYPL) is the top stock to invest in according to Philippe Laffont.
Although the hedge fund manager has sold 3% of stake in the latest quarter to capitalize on more than 100% share price rally, PayPal is still the largest stock holding of Coatue Management portfolio.
Other hedge fund managers are also bullish on PayPal based on the Insider Monkey report. It is ranked 8th among the 30 most popular stocks among hedge funds. Here is what Polen Capital Management stated about PayPal Holdings:
“We continue to have high conviction in MasterCard and Visa, which we trimmed last quarter, and chose to rebalance our weights as we added to our position in PayPal. PayPal’s value proposition to merchants and consumers continues to expand in the current environment, and we believe this will have a lasting positive impact on the business. At the end of the quarter, our collective position in Visa, MasterCard, and PayPal was more than 13%, an increase in our aggregate weight from the start of the year.”
Please also see: 10 Best Stocks To Invest In Right Now According To Tech Billionaire and Top 10 Stocks To Buy Now According To Secretive Billionaire Quant Hedge Fund Manager
