In this article, we discuss 5 best young stocks to buy and hold for the next 20 years. If you want to read about some more young stocks, go directly to 10 Best Young Stocks to Buy and Hold For Next 20 Years.
5. Grab Holdings Limited (NASDAQ:GRAB)
Number of Hedge Fund Holders: 25
Grab Holdings Limited (NASDAQ:GRAB) provides super-apps that allow access to mobility, delivery, financial services, and enterprise offerings through its mobile application. It is one of the best IPO stocks to invest in. On June 8, Grab Holdings said it would offer its in-house mapping and location services to GrabMaps. This service was used by the Singapore-based firm’s drivers and delivery partners and is now available in Southeast Asian countries.
On October 10, Barclays analyst Jiong Shao initiated coverage of Grab Holdings (NVM:GRAB) stock with an Equal Weight rating and a $3 price target, noting that the company has a very strong competitive position in the food delivery and ride hailing category.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based firm Tremblant Capital is a leading shareholder in Grab Holdings Limited (NASDAQ:GRAB), with 28 million shares worth more than $70.9 million.
4. Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders: 25
Robinhood Markets, Inc. (NASDAQ:HOOD) operates a financial services platform in the United States. It is one of the top IPO stocks to invest in. On September 28, Robinhood said it has entered a partnership with Circle to buy and sell USCoin on Robinhood. This will allow customers to earn awards, provide in-app educational modules, and it will also allow the transfer and use of USDC on the new wallet of Robinhood. Robinhood will use Circle’s payment infrastructure to make their settlements more efficient.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm ARK Investment Management is a leading shareholder in Robinhood Markets, Inc. (NASDAQ:HOOD), with 32.9 million shares worth more than $332 million.
In its Q2 2022 investor letter, Claret Asset Management, an asset management firm, highlighted a few stocks and Robinhood Markets, Inc. (NASDAQ:HOOD) was one of them. Here is what the fund said:
“Robinhood Markets, Inc. (NASDAQ:HOOD) went public at $38 a share at the end of July of this year. After a oneday decline of 8%, it proceeded to rise to a peak of $85 in a matter of 4 days before settling down around $40 in September. Then, we found out that the company does not appear to understand the margin rules that apply to their client’s trades… and got fined by the Securities Exchange Commission. As of today, it is trading below $20, at 57 times earnings, approximately half of its IPO price. Caveat emptor… Buyer beware.”
3. ironSource Ltd. (NYSE:IS)
Number of Hedge Fund Holders: 30
ironSource Ltd. (NYSE:IS) operates a business platform for app developers and telecom operators in Israel and internationally. It is one of the major IPO stocks to invest in. On October 4, ironSource launched its Return On Ad Spend (ROAS) optimizer. ROAS optimizer allows app marketers to set their own targeted ROAS goal and leave it to drive to the highest scale possible. This optimizer saves hours of manual work. This also provides marketers to get a visualization of the results.
On August 16, Wolfe Research analyst Gal Munda maintained a Peer Perform rating on ironSource (NYSE:IS) stock, noting that the company’s deal with Unity will be a game changer for both firms.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Havens Advisors is a leading shareholder in ironSource Ltd. (NYSE:IS), with 796,553 shares worth more than $2.7 million.
In its Q1 2022 investor letter, Argosy Investors, an asset management firm, highlighted a few stocks and ironSource Ltd. (NYSE:IS) was one of them. Here is what the fund said:
“I purchased IronSource early in the quarter and have seen ironSource Ltd. (NYSE:IS) decline in value nearly 32% through the end of the quarter, and further after the quarter. IronSource is a platform that helps game publishers maximize the financial success of their games and earns a cut of the revenues generated using its technology. They have grown extremely quickly in recent years, as gaming has become an increasingly popular outlet for free time. They grew 46% last quarter to over $150 million in quarterly revenue, at an operating margin of 18%. They expect to generate $800 million in revenue this year, and likely $0.15 per share of free cash flow in 2022, with the potential for $0.25 a few years from now. I believe that IS has a very profitable business model with the potential for a long runway of growth. At the same time, I could have chosen a better purchase price to make the investment, and that has become clear quite quickly. At current prices below $4 per share, returns from here can be attractive over the course of a few years.”
2. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 35
Rivian Automotive, Inc. (NASDAQ:RIVN) designs, develops, manufactures, and sells electric vehicles and accessories. It is one of the elite IPO stocks to invest in. On October 3, Rivian Automotive said it had produced 7,363 vehicles at its manufacturing facility in Normal, Illinois by the end of September. Rivian Automotive also shared its full year production target of 25,000 vehicles.
On September 28, RBC Capital analyst Joseph Spak maintained an Outperform rating on Rivian Automotive (NASDAQ:RIVN) stock and lowered the price target to $62 from $75, noting that the company’s near-term encouraging activity provides more confidence in the company’s Q4 ramp.
At the end of the second quarter of 2022, 35 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Rivian Automotive, Inc. (NASDAQ:RIVN), compared to 29 in the previous quarter worth $3.9 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Rivian Automotive, Inc. (NASDAQ:RIVN) was one of them. Here is what the fund said:
“Rivian Automotive, Inc. (NASDAQ:RIVN) designs, manufactures, and sells consumer and commercial electric vehicles. Shares of Rivian declined 48.2% in the second quarter as investors continued rotating out of long-duration assets and have become increasingly concerned about capital intensity and cash burn.
At the same time, Rivian continues to be impacted by supply chain issues which are causing delays in its production ramp. Rivian is addressing those challenges by diversifying its supply chain to alleviate shortages while also consolidating the number of variants in development to reduce cash burn (the company guided that current cash will be enough to support the company’s future platform launch ‘R2’ in 2025). Rivian recently reported stronger-than-expected second quarter production numbers while reiterating its annual guidance of producing 25,000 units.
As semiconductor shortages ease, we believe that the company will be able to rapidly ramp its production. We retain conviction in the shares given management’s vision, Rivian’s product positioning, the company’s relationship with Amazon.com, and its strong balance sheet. As of the end of the first quarter, Rivian had $17 billion of cash and cash equivalents, which will help it overcome the current challenges while taking advantage of the long-term opportunity as the market transitions to electric vehicles.”
1. Coupang, Inc. (NYSE:CPNG)
Number of Hedge Fund Holders: 37
Coupang, Inc. (NYSE:CPNG) owns and operates an e-commerce business through its mobile applications and websites primarily in South Korea. It is one of the major IPO stocks to invest in. On October 12, Coupang’s streaming platform, Coupang Play, acquired exclusive rights for NHL, the ice hockey league. Coupang Play will show two live games per week from the regular season and the playoffs. On September 29, Coupang said it has partnered with EUCHNER Korea and SICK Korea to secure standard safety related parts and control systems to be used for its logistics centers across Korea.
On August 15, Morgan Stanley analyst Seyon Park maintained an Overweight rating on Coupang (NYQ:CPNG) stock and raised the price target to $25 from $18, noting that the company is expected to see efficiency gain and had an accelerated EBITDA trajectory.
Among the hedge funds being tracked by Insider Monkey, Dallas-based investment firm Maverick Capital is a leading shareholder in Coupang, Inc. (NYSE:CPNG), with 84.5 million shares worth more than $1 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Coupang, Inc. (NYSE:CPNG) was one of them. Here is what the fund said:
“During the quarter, we also added to our position in the leading Korean e-commerce player, Coupang, Inc. (NYSE:CPNG), taking advantage of the stock’s volatility. While the stock sold off, the business remains robust, growing revenues by 32% in the most recent quarter (year-over-year in constant currency) while gaining market share (the industry grew 8%) and reaching profitability in its product commerce segment three quarters ahead of plan.”
You can also take a peek at 10 Best MLP Dividend Stocks to Buy and 10 Best Stocks to Buy According to Billionaire Dan Loeb.
