We recently published a list of 10 Best High-Risk Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Adobe Inc. (NASDAQ:ADBE) stands against other best high-risk stocks to buy according to billionaires.
Investors often retreat into safer assets during volatility when the global markets move towards a chaotic storm. But for billionaire investors, market chaos could mean something else entirely: an opportunity. The new tariffs the current U.S. President announced on April 2, 2025, sent ripples across Wall Street. Multiple headlines have started forecasting a recession, and some of the wealthiest minds in the financial world are looking at high-risk stocks, not with fear but with an intent to utilize the opportunity. These minds work on the philosophy that market storms would wash away the timid but also drench the bargains for those willing to wade in.
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The perspective is more relevant today as the stock market is seeing its highest drop in value since the COVID-19 pandemic. CNBC reported that only a handful of companies finished April 4 in the green, escaping the impact of the U.S. tariffs, but only slightly.
Experts call the new commercial environment a full-blown trade war ignited by the U.S. President’s sweeping 10% tariffs on all U.S. trading partners. The countries targeted by the new tariffs have started retaliating by imposing additional tariffs on U.S. goods, thus worsening the situation. Notably, China, the largest trade partner of the U.S., retaliated by imposing a 34% tax on American goods and a crackdown on U.S. firms.
Amid this panic, a small group of elite investors doubles down on risk. At first glance, it may seem like the strategy is built on unquestioning optimism, grounded in decades of historical precedent. Many billionaires believe that the best opportunities often surface during the ugliest moments in the market. Between 1980 and 2023, the average intra-year decline in the market was around 14%. Despite this staggering decline, the market could still post positive annual returns in 32 out of 44 years. Experts call the strategy positioning ahead of the rebound.
In this regard, high-risk stocks have often been seen outperforming once the dust settles. These stocks, exposed to uncertain market forces, are the type that collapse in weeks and double in days. Billionaires incorporate such high-risk stocks into their portfolios after estimating their time for recovery, innovation, and long-term asymmetry. It is not just about surviving the downturn but also about owning the comeback.
Growth stocks are garnering renewed attention in recent times in the category of high-risk stocks. Though they are bearing the effects of the current market carnage, historically, they have outperformed the value stocks in multi-decade comparisons. While these outperformances are not without any swings, they indicate that investors can move ahead with conviction and patience.
Of course, choosing the right high-risk stocks requires a deeper understanding of market psychology and the macroeconomic undercurrents. In this regard, the billionaire portfolios offer a valuable window. Their public disclosures provide an insight into the stocks where capital is concentrated despite the crumbling sentiments.
These are not random gambles. They are signals that income-seeking investors could use to pepper their portfolio with a few high-risk stocks and benefit from the experts’ advocacy.
Our Methodology
For this article, Insider Monkey’s billionaire database of Q4 2024 was reviewed to identify stocks with a beta value near 1.5, indicating they are expected to be about 50% more volatile than the broader market. Also, our list comprises stocks with positive earnings per share (EPS) over the past five years and a positive projected EPS growth over the next five years. The criterion was in place to consider only those stocks with historical profitability and future earnings potential. All the stocks have a consensus Strong Buy rating from Wall Street analysts, which suggests a positive market outlook.
Additionally, the stocks in the list are all large-cap firms, which reflects their market presence and liquidity. The stocks are ranked according to billionaire investors having stakes in them. We have sourced the required data from financial databases and analysts, with all information current as of April 4, 2025. Stocks’ presence in the number of hedge funds has also been considered to estimate the institutional interest.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A team of engineers and scientists collaborating at a workstation surrounded by their applications and solutions.
Adobe Inc. (NASDAQ:ADBE)
Number of Billionaire Investors: 18
Total Value of Billionaire Holdings: $5.78 Billion
Beta: 1.54
Adobe Inc. (NASDAQ:ADBE) is a global leader in digital media and experience software. Headquartered in California, the company is best known for products like Photoshop, Acrobat, and its Creative Cloud suite. The company also delivers marketing automation and analytics through Adobe Experience Cloud. Through these products, the company serves creators, marketers, and enterprises. Canva remains a tough competitor, but Adobe maintains an edge through recurring subscription revenue and continuous innovation in AI tools like Adobe Firefly.
Adobe Inc. (NASDAQ:ADBE) is backed by eighteen billionaire investors controlling $5.78 billion, reflecting confidence in the company’s creative software leadership. In line with this confidence, it recorded an 11% year-over-year growth in its revenue. Strong growth in the Digital Media business and Document Cloud segment supported this upward trend in revenue. Notably, the Adobe Experience Platform and native apps exceeded $1 billion in the book of business because of their overwhelming adoption among industry leaders. For the year 2025, the company expects revenue to be between $23.3 billion and $23.55 billion, thus attracting investors looking for the best high-risk stocks.
Adobe Inc. (NASDAQ:ADBE)’s beta of 1.54 reflects moderate volatility. The company’s EPS has grown by 15.54% over the past five years, with a modest 5-year projection of 11.46%. Institutional interest stands high, with 117 hedge funds, tracked by Insider Monkey at the end of Q4 2024, holding stakes in the company.
Overall, ADBE ranks 1st on our list of best high-risk stocks to buy according to billionaires. While we acknowledge the potential for ADBE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ADBE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
