Billionaire Daniel Sundheim’s Top 15 Stock Picks Heading Into 2025

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1. Maplebear Inc. (NASDAQ:CART)

D1 Capital Partners’ Equity Stake: $918.55 Million

Number of Hedge Fund Holders as of Q3 2024: 55

Maplebear Inc. (NASDAQ:CART) is an internet retail company that provides online grocery shopping services to households. Its competitive edge stems from delivering 25% of its orders in less than 30 minutes, making it a preferred online shopping destination for many people. It also benefits from its strategic partnership with Uber Technologies, which enhances deliveries through the Instacart app.

Maplebear Inc. (NASDAQ:CART) is one of billionaire Daniel Sundheim’s top 15 stock picks heading into 2025, going by its 74% gain, year-to-date. The stock has outperformed the overall retail and wholesale sector, which has returned an average of 34.2%. The outperformance comes from Maplebear delivering better than expected financial results and benefiting from improving consumer spending power.

In its third-quarter report on November 13, 2024, the internet retail giant delivered $0.42 in earnings per share against a loss of $20.86 a share delivered in the same period last year. Revenue in the quarter was up 11.5% to $85 million. Maplebear bouncing back to profitability comes from the grocery market being underpenetrated online. The company expects its fourth-quarter gross transaction value to range between $8.50 billion and $8.65 billion, representing an 8% to 10% year-over-year growth.

While we acknowledge the potential of CART as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than CART but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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