In this article, we discuss 5 most promising future stocks to buy. If you want to see more most promising future stocks to buy, the risk/reward, and methodology of this list, go directly to 12 Most Promising Future Stocks to Buy.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 135
Apple Inc. (NASDAQ:AAPL) is a future stock given the company makes cutting edge smartphones and other computing devices that could be in demand in the future. Apple Inc. (NASDAQ:AAPL) is also working on other future products such as a potential mixed reality headset and autonomous cars that could help diversify the company’s sales. Furthermore, Apple Inc. (NASDAQ:AAPL) has substantial financial resources given it is one of the most profitable companies in the world. With its profits, Apple Inc. (NASDAQ:AAPL) could buy into potentially growing businesses in the future.
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 152
Alphabet Inc. (NASDAQ:GOOG) has invested a lot of money into self driving cars and various AI projects over the years that could help it diversify its income in case its search business comes under more pressure from Bing. In terms of its self driving cars, Alphabet Inc. (NASDAQ:GOOG)’s Waymo is one of the leaders in the industry and in terms of AI, Alphabet Inc. (NASDAQ:GOOG) plans to launch more than 20 AI products this year. Given Bing could gain market share in the near term, Alphabet Inc. (NASDAQ:GOOG) is a higher risk stock even though it has a forward P/E of 15.11 as of February 21.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 194
Meta Platforms, Inc. (NASDAQ:META) has invested tens of billions into building the metaverse over the past few years and the social media giant will likely invest tens of billions more in the coming years. If the metaverse is a success, Meta Platforms, Inc. (NASDAQ:META) could remain a tech leader in the future and potentially also realize a return on its huge investment. 194 hedge funds in our database owned shares of Meta Platforms, Inc. (NASDAQ:META) at the end of Q4, ranking the stock #3 on our list of 10 Most Promising Future Stocks to Buy.
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 240
Amazon.com, Inc. (NASDAQ:AMZN) is a future stock in that its leading cloud business will likely help power many AI applications in the future if it maintains its market share. Amazon.com, Inc. (NASDAQ:AMZN)’s e-commerce business could also benefit from future technologies such as drones that could make delivery cheaper and faster.
Worm Capital commented on Amazon.com, Inc. (NASDAQ:AMZN) in its yearly 2022 investor letter,
Amazon.com, Inc. (NASDAQ:AMZN): In Amazon we believe we hold a behemoth with two near monopolies in e-commerce and cloud computing, to go along with several other ancillary opportunities. The pandemic presented AMZN with unique opportunities and challenges. There was a tremendous amount of immediate demand for their services as social distancing and lockdowns were implemented early on. They had a decision to make. Either invest heavily and aggressively to meet this increased demand, or take a cautious approach and avoid expanding capacity that may be temporarily overbuilt if the environment normalizes. They of course took the former route and took the necessary actions to meet demand. They benefited greatly throughout 2020 and 2021. But once people went back to more normalized shopping habits, they were left with excess capacity and costs. This hurt their bottom line this past year, however, we believe they made the correct decision. Overall, we feel they accrued significant positive benefits during the period and the equity valuation decrease has been dramatically overdone
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 259
Microsoft Corporation (NASDAQ:MSFT) ranks #1 on our list of 12 Most Promising Future Stocks to Buy given 259 hedge funds in our database owned shares of the stock at the end of Q4. Microsoft Corporation (NASDAQ:MSFT) has substantial growth potential in the future given it is a leader in AI. Microsoft Corporation (NASDAQ:MSFT) is also a potential metaverse leader given it makes the HoloLens and the company is a leader in terms of gaming given its XBox franchise.
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