In this article, we will take a look at the 8 Stocks Jeff Bezos is Buying
‘We are Famously Unprofitable’
Jeff Bezos is a name closely tied to Amazon the company he reportedly founded in 1994 during a cross-country road trip. What began as a modest online bookstore has since evolved into a massive e-commerce giant, outpacing competitors and leading many consumer markets. It went public in 1997, prompting market analysts to question whether it could compete once traditional retailers launched their own e-commerce platforms. Just two years later, the start-up not only kept pace but surged ahead, establishing itself as a leader in online retail. While many dot-coms from the early ’90s failed, Bezos’ company thrived, becoming a dominant force in e-commerce and technology. Its success is largely attributed to its unwavering focus on customer experience. The company prioritizes making shopping fast and convenient, with every decision rooted in its customer-centric philosophy.
In the 24 years since Jeff Bezos made his famous statement on BBC Newsnight, the company has solidified its dominance in both ecommerce and cloud computing. The company generated $574.8 billion in net sales revenue in 2023 and has expanded into various sectors beyond retail, including film and television production, a streaming service, full-service grocery stores, and AI assistant technology. It has also grown through strategic acquisitions, integrating companies like Twitch Interactive, Whole Foods, and Audible into its ecosystem.
Of course, the tech icon didn’t just stick with one venture. In 2000, Bezos founded Blue Origin, an aerospace company focused on developing technologies to reduce the cost of space travel, aiming to make it accessible to paying customers. For its first 15 years, the company operated quietly. However, in August 2019, NASA selected Blue Origin as one of 13 companies to collaborate on 19 technology projects aimed at reaching the moon and Mars. Despite this achievement, Blue Origin faces stiff competition from industry giants like Elon Musk’s SpaceX in the heavy-lift rocket launch market. That said, the company has been making significant advancements in the industry. Earlier this September, Blue Origin successfully test-fired the second stage of its next-generation rocket, the New Glenn. The 15-second test was a success, with both the engine and various subsystems performing as expected, thus marking a key milestone for the company in its bid to reach Earth’s orbit. While Blue Origin has launched rockets 26 times, including eight suborbital flights with space tourists, all of its previous missions have been suborbital.
All in all, becoming a billionaire is something not many can claim, with just 2,781 individuals out of nearly 8 billion people reaching that milestone. Even after stepping down as CEO in 2021, Jeff Bezos continues to invest in various ventures through his family office, Bezos Expeditions. While many of these are startups or privately held companies, there are also publicly traded options available. For those, interested in following the tech icon’s investment moves, we will explore these stocks that Bezos is backing.
Our Methodology
We examined the investments of Bezos Expeditions, Jeff Bezos’ family office, to identify key companies he’s invested in. All selected firms are publicly traded, and the stocks are ranked in ascending order based on hedge fund sentiment as of Q2 2024, as tracked by Insider Monkey.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
8. Sana Biotechnology, Inc. (NASDAQ:SANA)
Number of Hedge Fund Holders: 15
Sana Biotechnology, Inc. (NASDAQ:SANA), based in Seattle, Washington, focuses on developing treatments for complex diseases like cancer, diabetes, and nervous system disorders. The company’s R&D pipeline is a key driver of its potential success, with multiple updates expected by the end of 2024. These include developments for SC291/SC262 in hematological cancers and an investigator-sponsored trial (IST) for modified pancreatic islet cells.
Citi recently raised its price target for Sana’s stock from $8.00 to $15.00, maintaining a Buy rating. This update follows news that several Type 1 diabetes (T1D) patients have been enrolled in an IST. Citi also launched a 90-day Catalyst Watch, anticipating data from the T1D trial, expressing optimism about the stock’s potential upside if results are favorable.
As of Q2 2024, Sana Biotechnology, Inc. (NASDAQ:SANA) reported $251.6 million in cash and equivalents, providing a solid runway for its R&D efforts. The company’s R&D expenses for the quarter were $60.9 million, slightly higher than expected, while SG&A expenses were lower than anticipated at $16.4 million. The company also reported a Q2 EPS of $0.21, better than the projected $0.32, indicating strong cost management despite its heavy R&D investment.
Notably, Julian Baker and Felix Baker’s Baker Bros. Advisors is the largest shareholder in Sana Biotechnology, Inc. (NASDAQ:SANA), holding 2.38 shares valued at $12.99 million.
7. Nextdoor Holdings Inc. (NYSE:KIND)
Number of Hedge Fund Holders: 21
Nextdoor Holdings, Inc. (NYSE:KIND) runs a hyperlocal social networking platform designed for neighborhoods. With over 45 million weekly active users, the company expects notable product advancements by mid-2025.
Citi recently reaffirmed its Neutral rating and a $2.65 price target for Nextdoor Holdings, Inc. (NYSE:KIND) after discussions with the company’s leadership during the annual Citi Tech conference. Insights from this meeting highlighted Nextdoor’s strategies for its evolving platform, dubbed NEXT Nextdoor. Citi notes that while Nextdoor Holdings, Inc. (NYSE:KIND) is still in the early stages of its turnaround, there are promising aspects in its vision for the NEXT platform and potential monetization, provided the company maintains operational discipline.
For Q2 2024, Nextdoor Holdings, Inc. (NYSE:KIND) reported an 11% year-over-year revenue growth, reaching $63 million, though it faced an adjusted EBITDA loss of $6 million. Despite this, the company projects a 10% revenue growth for the full year and is targeting positive free cash flow by Q4 2024.
As of Q2 2024, 21 hedge funds held positions in Nextdoor Holdings, Inc. (NYSE:KIND). The largest stake, valued at $23.94 million, belongs to Catherine D. Wood’s ARK Investment Management.
6. Remitly Global Inc. (NASDAQ:RELY)
Number of Hedge Fund Holders: 29
Remitly Global Inc. (NASDAQ:RELY) is a top provider of cross-border digital financial services, specializing in online remittance solutions. The company facilitates quick and easy international money transfers to over 170 countries.
In Q2 2024, Remitly Global Inc. (NASDAQ:RELY) delivered strong results, exceeding expectations with a 36% year-over-year growth in active accounts and a 38% increase in send volume. This performance led to revenue and adjusted EBITDA figures surpassing analyst estimates, prompting the company to raise its full-year 2024 guidance. Management is confident in achieving 30-32% revenue growth for the fiscal year, driven by both new customer acquisition and higher engagement from existing users. Analysts also expect a long-term revenue compound annual growth rate of 20-25% over the next five years, reflecting continued growth potential.
As of June 30, 29 hedge funds held positions in Remitly Global Inc. (NASDAQ:RELY), with a total of 9.7 million shares. The largest stake, valued at $117.3 million, is held by Cadian Capital.
Meridian Growth Fund stated the following regarding Remitly Global, Inc. (NASDAQ:RELY) in its Q2 2024 investor letter:
“Remitly Global, Inc. (NASDAQ:RELY) is a digitally native money transfer company that is taking share in the remittance market from established competitors such as Western Union and MoneyGram. The stock underperformed during the period on slightly lower than expected net new customers, though the company beat top-line EBIDTA estimates and reaffirmed positive guidance for the year. We are not concerned about the softness in net new customers in the historically slow post-holiday period and continue to have confidence in the business model and management team. As such, we maintained our position during the quarter.”
5. Denali Therapeutics Inc. (NASDAQ:DNLI)
Number of Hedge Fund Holders: 30
Denali Therapeutics Inc. (NASDAQ:DNLI) is a biopharmaceutical company focused on developing treatments for neurodegenerative and lysosomal storage diseases, with a portfolio of candidates designed to cross the blood-brain barrier (BBB).
BofA Securities recently raised its price target for Denali Therapeutics Inc. (NASDAQ:DNLI) from $25 to $29, while maintaining a Buy rating. This upgrade follows Denali’s progress with the FDA on its therapy for Hunter syndrome, tividenofusp alfa (tivi; DNL310). The company has reached an agreement with the FDA for an accelerated approval pathway, using cerebrospinal heparan sulfate (CSF HS) as a surrogate biomarker. Denali Therapeutics Inc. (NASDAQ:DNLI) also plans to file a Biologics License Application (BLA) in early 2025, anticipating a priority review.
As of Q2 2024, 30 hedge funds held positions in Denali Therapeutics Inc. (NASDAQ:DNLI), with a total value of $390 million. The largest shareholder among them is Baker Bros. Advisors, owning 2.3 million shares worth $47 million.
4. GRAIL, Inc. (NASDAQ:GRAL)
Number of Hedge Fund Holders: 32
GRAIL, Inc. (NASDAQ:GRAL), a biotechnology company based in Menlo Park, California, was originally a startup and former subsidiary of Illumina. It focuses on developing early cancer screening tests for asymptomatic individuals.
Following its separation from Illumina, GRAIL, Inc. (NASDAQ:GRAL) expects to record a significant goodwill impairment charge, estimated at $888.9 million, tied to the application of pushdown accounting after its acquisition by Illumina. Additionally, the company foresees a large impairment charge for its in-process research and development (IPR&D) assets, valued at $560.0 million.
In August of this year, GRAIL, Inc. (NASDAQ:GRAL) reported its first results as an independent public company. Q2 2024 revenue reached $32.0 million, marking a 43% year-over-year increase, although the company posted a net loss of $1.6 billion for the quarter, including amortization and impairment of acquisition-related intangibles. Gross loss came in at $17.9 million, while non-GAAP adjusted gross profit stood at $16.0 million, and non-GAAP adjusted EBITDA was $139.4 million.
As of Q2 2024, 32 hedge funds rerported holding shares of the biotech company, with a total stake value coming in at $91.6 million.
3. Airbnb, Inc. (NASDAQ:ABNB)
Number of Hedge Fund Holders: 63
Airbnb, Inc. (NASDAQ:ABNB), based in San Francisco, operates an online platform that connects homeowners with travelers seeking accommodations.
On September 27, Raymond James initiated coverage of ABNB stock with a Market Perform rating. The firm believes Airbnb, Inc. (NASDAQ:ABNB) is well-positioned to evolve from a search-based accommodation platform into a more interactive travel concierge, which could boost user engagement and expand its inventory. With over 50 million users, Airbnb’s strong reputation supports this strategic shift. While optimistic about the company’s long-term potential—especially with advancements in Generative AI agents—Raymond James notes that investments in growth initiatives, such as expansion into emerging markets, could weigh on short-term performance.
In Q2 2024, Airbnb’s revenue increased by 11% to $2.75 billion, with gross booking value also rising 11% to $21.2 billion. The company continues to generate strong cash flow, and its substantial international growth opportunities are a key factor driving optimism.
As of the second quarter, 63 hedge funds held stakes in Airbnb, Inc. (NASDAQ:ABNB), with total holdings valued at $2.6 billion.
2. Workday Inc. (NYSE:WDAY)
Number of Hedge Fund Holders: 86
Workday, Inc. (NASDAQ:WDAY) is a global leader in enterprise cloud applications, specializing in finance and human resources solutions. Founded in 2005 in California, Workday provides financial management, human capital management, and analytics services to businesses, educational institutions, and government organizations worldwide.
Oppenheimer reaffirmed its positive outlook on Workday, Inc. (NASDAQ:WDAY) , a leading provider of enterprise cloud applications for finance and HR, maintaining an Outperform rating with a $300 price target. This follows feedback from customer interviews and partner checks at Workday’s annual Rising conference, which Oppenheimer used to assess the company’s market position and performance as it heads into its fourth fiscal quarter. The financial outlook for Workday, Inc. (NASDAQ:WDAY) is strong, with Oppenheimer forecasting a notable acceleration in cash flow growth, expecting over 25% compound annual growth for 2025 and 2026, which it views as highly attractive.
Workday, Inc. (NASDAQ:WDAY) recently reported a 17% increase in subscription revenue, reaching $1.903 billion, and adjusted its revenue growth forecast to 15%. The company also set ambitious targets for fiscal year 2027, aiming for a 34% operating cash flow margin and a 30% free cash flow margin. Additionally, Workday Ventures, its strategic investment arm, invested in 10 AI startups focused on improving workplace productivity and decision-making. Workday, Inc. (NASDAQ:WDAY) also introduced 12 new Industry Accelerators to enhance HR and finance operations across different sectors.
By the end of Q2 2024, 86 of the 912 hedge funds tracked by Insider Monkey held shares in Workday, Inc. (NASDAQ:WDAY). Viking Global, led by Andreas Halvorsen, held the largest position, valued at $885.28 million, based on its most recent 13F filing.
1. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 145
Uber Technologies, Inc. (NYSE:NYSE) is a global leader in ride-hailing, food delivery, and freight services, revolutionizing urban transportation by connecting passengers with drivers via its mobile app since its inception. In Q2 2024, the global tech company saw a 21% year-over-year growth in gross bookings, alongside a 14% increase in its user base.
Uber Technologies, Inc. (NYSE:NYSE) recently announced a partnership with autonomous technology startup Avride to expand its self-driving capabilities. Uber Eats will begin using Avride’s sidewalk robots for deliveries in Austin, with plans to extend the service to Dallas and Jersey City. Additionally, Uber plans to introduce robotaxi rides in Dallas next year.
Additionally, TD Cowen reiterated its Buy rating on UBER with a $90 price target, emphasizing the importance of autonomous vehicles (AVs) to Uber’s future scalability. The firm’s analysis suggests that the deployment of cost-effective AVs will be crucial for Uber Technologies, Inc. (NYSE:NYSE) to expand its technology efficiently.
In Q2, 145 hedge funds held stakes in Uber Technologies, Inc. (NYSE:NYSE), with a combined value of $8.7 billion. Altimeter Capital Management is the largest shareholder, owning 13.515 million shares as of June 30.
RiverPark Advisors stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its first quarter 2024 investor letter:
“Uber Technologies, Inc. (NYSE:UBER): UBER was a top contributor in the quarter following better than expected 4Q23 earnings and 1Q24 guidance. Gross bookings of $37.6 billion were up 22% year over year. Mobility gross bookings of $19.3 billion grew 29% over last year driven by a combination of product innovation and driver availability. Delivery gross bookings of $17 billion were up 19% from last year and continued to be strong throughout the quarter. 4Q Adjusted EBITDA of $1.3 billion, up $618 million year over year, was better than management’s guidance of $1.2 billion, and the company generated $768 million of free cash flow, up from a cash loss of $303 million last year. Management guided to continuing growth in 1Q Gross Bookings (20% growth) and Adjusted EBITDA (of $1.3 billion). The company hosted a well-received analyst day in February during which it guided to three year compounded annual growth rates for gross bookings of mid-to-high single digits and EBITDA of 30-40%, both above investor expectations. The company also guided to free cash flow conversion of 90% of EBITDA.
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. 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 $5.4 billion of unrestricted cash and $4.8 billion of investments, the company today has an enterprise value of $165 billion, indicating that UBER trades at 21x our estimates of next year’s free cash flow.”
While we recognize the potential of UBER as an investment, we believe certain deeply undervalued AI stocks offer greater prospects for higher returns in a shorter period. If you’re seeking an AI stock with even more promise than those on our list and trading at less than 5 times its earnings, check out our report about the cheapest AI stock.
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