In this article, we will take a detailed look at the Top 10 Stocks to Buy According to Jericho Capital Asset Management.
Jericho Capital Asset Management, founded in 2009 by Josh Resnick, is a New York-based hedge fund manager specializing in long/short equity strategies across developed and emerging markets. Resnick established the firm with a focus on identifying market inefficiencies and capitalizing on both undervalued and overvalued securities. The investment management firm specializes in the global technology, media, and telecommunications (TMT) sectors, offering a range of financial planning, advisory, and asset management services to institutional clients and high-net-worth individuals.
As an investment advisor, Jericho Capital provides discretionary investment advisory services to pooled investment vehicles, including hedge funds and private equity funds. These funds are typically structured as master-feeder funds, where feeder funds allocate their capital to a centralized master fund managed by the firm. This structure allows investors to access a diversified portfolio while benefiting from the firm’s expertise in security selection. Given the speculative nature of its strategies, the firm cautions investors about the substantial risks involved, including the potential for significant or complete loss of capital.
Jericho Capital employs a long/short investment strategy, aiming to generate returns by purchasing undervalued securities and short-selling overvalued ones. The firm may also pursue special opportunities strategies, which can involve distinct transaction costs and pricing structures. The success of these approaches relies heavily on the firm’s ability to accurately assess market opportunities, a process that is inherently complex and subject to fluctuations. Market volatility and economic disruptions can lead to unforeseen losses, requiring the firm to make strategic adjustments to protect investor capital.
Despite the risks, Jericho Capital’s approach appeals to investors seeking alternative investment strategies with the potential for high returns. By leveraging its expertise in equity markets, the firm positions itself as a key player in the hedge fund industry. While its investment styles involve substantial risks, its track record and disciplined investment framework make it a notable choice for those willing to embrace volatility in pursuit of long-term gains.
Currently the founder and managing partner of Jericho Capital, Josh Resnick played a key role at TCS Capital before launching Jericho Capital. TCS Capital was a prominent TMT-focused hedge fund that he joined shortly after its inception in 2001. Resnick’s extensive experience in finance and investment spans multiple industries, with a focus on identifying high-growth opportunities within rapidly evolving markets. Prior to his tenure at TCS Capital, Resnick served as a Managing Director at KPE Ventures, a New York-based venture capital firm dedicated to investments in media, entertainment, and technology. His expertise in business development was further honed during his time at Fox Entertainment Group in Los Angeles, where he was part of a strategic team overseeing expansion initiatives. He began his career in investment banking at Bear Stearns, working in the media and entertainment sector, where he gained critical experience in mergers, acquisitions, and corporate finance.
Resnick holds a Bachelor of Arts degree in Economics from Emory University, where he graduated Summa Cum Laude. His academic background provided a strong foundation for his career in investment management, equipping him with analytical skills essential for navigating complex financial markets. Beyond his professional achievements, Resnick is actively involved in philanthropy. He serves on the Board of Directors of the Child Mind Institute in New York City, a nonprofit organization dedicated to supporting children with mental health and learning disorders. His commitment to both finance and social impact underscores his well-rounded leadership in the investment world.
As of its latest filing for the fourth quarter of 2024, Jericho Capital Asset Management reported managing approximately $7 billion in 13F securities. The firm maintains a moderately concentrated portfolio, with its top ten holdings making up 64.13% of total assets. This level of concentration suggests a high-conviction investment strategy, where the firm places significant emphasis on a select group of stocks it believes have strong growth potential. The firm’s investment decisions reflect its focus on the global technology, media, and telecommunications sectors, indicating confidence in the long-term growth prospects of these industries. Overall, Jericho Capital’s portfolio structure highlights its strategic focus and deep industry expertise. Its investment approach aligns with a belief in innovation-driven sectors, making it a key player in the hedge fund landscape.
Our Methodology
The stocks discussed below were picked from Jericho Capital Asset Management’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
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).
Top 10 Stocks to Buy According to Jericho Capital Asset Management
10. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders as of Q4: 166
Jericho Capital Asset Management’s Equity Stake: $298.64 Million
Uber Technologies, Inc. (NYSE:UBER) is a global technology company specializing in ride-hailing, food delivery, and freight transport services, operating across more than 70 countries and 15,000 cities. The company’s core business revolves around connecting riders with drivers through its app, while Uber Eats facilitates food delivery by linking customers with independent couriers. Additionally, Uber has expanded into freight transportation, providing a platform for shippers and carriers. With subsidiaries like Uber Eats and Careem, the company continues to diversify its services, including public transit, bikes, and scooters. Despite its vast global presence and ongoing innovation, Uber’s stock declined over 7% on February 5 after its fourth-quarter earnings report, which surpassed revenue expectations but fell short on earnings per share (EPS) and provided weaker-than-expected guidance.
Financially, Uber’s fourth-quarter revenue grew 20% year over year to $11.96 billion, exceeding the expected $11.77 billion. However, its adjusted EPS of $0.23 fell below analysts’ estimates of $0.50. The company reported a net income of $6.9 billion, or $3.21 per share, up from $1.4 billion, or $0.66 per share, in the previous year. This figure was significantly impacted by a $6.4 billion tax valuation benefit and a $556 million gain from equity investment revaluations. Gross bookings reached $44.2 billion, surpassing expectations, while adjusted EBITDA climbed 44% year over year to $1.84 billion. Looking ahead, Uber Technologies, Inc. (NYSE:UBER) anticipates first-quarter gross bookings between $42 billion and $43.5 billion and adjusted EBITDA between $1.79 billion and $1.89 billion, slightly below analyst expectations.
Uber Technologies, Inc. (NYSE:UBER) continues to position itself at the forefront of technological advancements: the company recently announced the public launch of robotaxi rides in Austin, Texas, through its partnership with Alphabet’s Waymo. While CEO Dara Khosrowshahi acknowledges that the commercialization of autonomous driving technology will take years due to regulatory challenges, Uber Technologies, Inc. (NYSE:UBER) sees the sector as a trillion-dollar opportunity. The company aims to establish itself as the go-to-market partner for autonomous vehicle (AV) developers, investing heavily in the technology to drive long-term growth.
Hardman Johnston Global Equity Strategy stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its Q4 2024 investor letter:
“During the quarter, we initiated three new positions in Lennar Corporation, Bank of America Corp., and Uber Technologies, Inc. (NYSE:UBER). Uber is a leading platform company that facilitates ride-hailing, food delivery, and freight booking services, which each represent large and underpenetrated markets. Uber is active in more than 10,000 cities and approximately 70 countries globally, and Uber is a market leader with more than 65% market share in nearly all ride-sharing regions in which it operates. Uber should continue to benefit from secular tailwinds, product innovation, expansion, and network effects. The cross-selling of the Uber One membership program should drive both loyalty and engagement. International markets represent half the business and continue to be an important growth driver. Overall, we see sustained healthy topline growth for the company over the next three years with some insulation to global economic trends.”
9. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders as of Q4: 74
Jericho Capital Asset Management’s Equity Stake: $301.26 Million
Twilio Inc. (NYSE:TWLO) is a cloud communications company based in San Francisco, California, offering programmable communication tools for businesses to facilitate phone calls, text messaging, and other digital interactions through web service APIs. Despite strong revenue growth, Twilio’s stock dropped 15% following its fourth-quarter 2024 earnings report, mainly due to an earnings miss and cautious forward guidance. The company posted a total revenue of $1.19 billion, an 11% increase year over year, with communications revenue rising 12% to $1.12 billion. However, its non-GAAP earnings per share (EPS) of $1.00 slightly missed the consensus estimate of $1.02.
Twilio Inc. (NYSE:TWLO)’s fourth-quarter results showcased notable improvements in profitability. The company reported GAAP income from operations of $13.7 million, a significant turnaround from a $361.7 million loss in the prior year. CEO Khozema Shipchandler emphasized Twilio’s commitment to financial discipline and innovation, highlighting that the company achieved its first-ever quarter of GAAP operating profitability. Despite this progress, Twilio Inc. (NYSE:TWLO) faced financial setbacks, including $16.8 million in bad debt expenses related to Brazilian telecom provider Oi SA. Twilio’s net cash provided by operating activities was $108.4 million, with a free cash flow of $93.5 million, both significantly lower than the previous year’s figures.
To bolster shareholder value, Twilio Inc. (NYSE:TWLO)’s Board of Directors approved a $2.0 billion share repurchase program in January 2025, set to run through December 31, 2027. This follows the completion of $3.0 billion in stock buybacks under its previous program, which expired at the end of 2024. The company’s strategic focus on operational discipline and digital communication innovation positions it for long-term success, though cautious investor sentiment persists amid fluctuating earnings performance and near-term financial risks.
Twilio Inc. (NYSE:TWLO) is a recent addition to Josh Resnick’s portfolio, with the hedge fund acquiring shares for the first time in Q4 2024. Despite being a new holding, Jericho Capital Asset Management invested significantly, purchasing almost 2.8 million shares valued at over $301 million, making it the ninth most valuable position in the fund’s 13F holdings for the quarter ending in December 2024.
8. Affirm Holdings, Inc. (NASDAQ:AFRM)
Number of Hedge Fund Holders as of Q4: 61
Jericho Capital Asset Management’s Equity Stake: $316.56 Million
Affirm Holdings, Inc. (NASDAQ:AFRM) is a leading American financial technology company specializing in “buy now, pay later” (BNPL) services for consumers and merchants. Founded in 2012 by PayPal co-founder Max Levchin, Affirm has grown into the largest BNPL lender in the United States. As of 2024, the company reports 19.5 million users and processes approximately $26.6 billion in annual payments. By offering interest-free and low-interest installment payment options, Affirm Holdings, Inc. (NASDAQ:AFRM) enables consumers to make purchases more affordably while helping merchants drive sales and customer engagement.
Affirm’s financial performance in its fiscal 2025 second quarter, ending December 31, 2024, exceeded market expectations. The company reported earnings of $0.23 per share, a striking 215% surprise compared to the projected loss of $0.20 per share. This represents a significant improvement from the previous year’s earnings of $0.04 per share. In the prior quarter, Affirm Holdings, Inc. (NASDAQ:AFRM) was expected to post a loss of $0.36 per share but instead reported a narrower loss of $0.31, beating estimates by 13.89%. These consistent earnings surprises highlight the company’s ability to outperform expectations, reflecting both operational efficiency and growing consumer adoption of its BNPL services.
Revenue growth has also been a key driver of Affirm’s strong performance. The company posted revenues of $866.38 million for the quarter, surpassing analyst projections by 7.74%. This marks a substantial increase from the $591.11 million in revenue recorded in the same period a year ago. Over the last four quarters, Affirm Holdings, Inc. (NASDAQ:AFRM) has consistently outperformed consensus revenue estimates, demonstrating robust demand for its payment solutions.
Affirm Holdings, Inc. (NASDAQ:AFRM) continues to strengthen its market position, capitalizing on the growing trend of flexible consumer financing. The combination of higher-than-expected earnings and revenue growth indicates effective cost management and sustained expansion. However, challenges remain, including regulatory scrutiny of BNPL services and broader economic factors affecting consumer spending.
7. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders as of Q4: 223
Jericho Capital Asset Management’s Equity Stake: $323.24 Million
NVIDIA Corporation (NASDAQ:NVDA) continues to dominate the high-performance GPU market, reporting record-breaking revenue of $39.3 billion in its most recent quarter. This marks a 12% increase from the prior quarter and a 78% year-over-year growth, largely fueled by a 93% surge in its data center segment. With AI applications driving unprecedented demand for GPUs, NVIDIA remains at the forefront of the industry, leveraging its technological edge to sustain growth.
NVIDIA Corporation (NASDAQ:NVDA) has projected revenue of $43 billion for the April quarter, reflecting a 9% sequential increase and a 65% year-over-year jump, surpassing analysts’ expectations of $42.1 billion. Despite the emergence of competitors, NVIDIA’s commitment to annual GPU advancements ensures its continued dominance in AI computing. The company’s focus on developing cutting-edge chips for AI workloads and data centers positions it as an indispensable player in the rapidly evolving tech landscape. As AI adoption accelerates, NVIDIA’s strategic innovation and expansion efforts reinforce its long-term growth trajectory.
Beyond AI, NVIDIA Corporation (NASDAQ:NVDA) is making strides in quantum computing through the launch of the Nvidia Accelerated Quantum Research Center (NVAQC) in Boston. This research effort underscores NVIDIA’s ambition to pioneer next-generation computing technologies despite previous skepticism about the near-term feasibility of practical quantum computing. With rapid advancements in the field, NVIDIA is well-positioned to capitalize on potential breakthroughs that could redefine computational capabilities.
In addition to quantum computing, NVIDIA Corporation (NASDAQ:NVDA) is expanding into robotics through a partnership with OpenAI-backed Norwegian startup 1X. The collaboration focuses on developing autonomous humanoid robots for home use, with a recent demonstration at the Nvidia GTC conference showcasing a robot autonomously loading a dishwasher. Using NVIDIA’s AI models and onboard GPUs, the humanoid robot, Neo Gamma, learned complex tasks through imitation learning, highlighting NVIDIA’s growing influence in AI-powered automation. With 1X planning to test these robots in homes by year-end, NVIDIA’s investment in robotics further cements its role as a leader in AI-driven innovation across multiple industries.
Guinness Global Innovators stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“For a second year running, NVIDIA Corporation (NASDAQ:NVDA) was the Fund’s top performing stock, delivering a stellar return of +177.7% over the year. Since the beginning of last year, Nvidia’s ‘Hopper’ GPUs have been at the centre of exploding demand for chips powerful and efficient enough to facilitate the energy intensive requirements of AI processes within datacentres. Initially possessing over 95% of market share in these types of chips, Nvidia have been quick to entrench their position as the technological leader in the space, launching the successor to the current ‘Hopper’ GPU in March, Blackwell, inhibiting the likes of AMD and Intel making meaningful inroads in taking share of the fast-growing market. Compared to the previous iteration (Hopper) which is continuing to fuel Nvidia’s extreme revenue growth, the Blackwell chip is twice as powerful for training AI models and has 5 times the capability when it comes to “inference” (the speed at which AI models respond to queries). Throughout the year, Nvidia’s financial performance has remained resilient. Quarterly revenues hit $35.1 billion in their most recent quarter, beating consensus expectations by 6% and representing a +94% year-over-year increase. Additionally, Nvidia’s data centre segment, driven by the Hopper (H100) chip, grew fivefold over the past year, underscoring the sustained demand for advanced AI infrastructure. The H100 chip, priced at around $40,000, continues to see significant adoption due to its ability to enhance AI model training efficiency while lowering overall costs. This growth is expected to continue as companies invest in upgrading existing data centres and building new ones, with Nvidia well-positioned to capture a significant share of the estimated $2 trillion market opportunity over the next five years. There have been some concerns over Blackwell production delays causing share price volatility however, Nvidia has recovered swiftly, driven by positive earnings results through the year and assurances from management regarding future supply. Additionally, the release of the H200 chip promises to extend Nvidia’s technological leadership, ensuring continued momentum into 2025. While Nvidia’s valuation remains a topic of debate, the stock is not at a significant premium to history, and it still appears reasonable given its dominant market position, innovative prowess, and exposure to long-term secular growth trends in AI, cloud computing, and data infrastructure. As a result, Nvidia remains well-positioned to deliver sustained outperformance over the long term, making it a cornerstone of growth-oriented portfolios.”
6. Formula One Group (NASDAQ:FWONK)
Number of Hedge Fund Holders as of Q4: 50
Jericho Capital Asset Management’s Equity Stake: $337.08 Million
Formula One Group (NASDAQ:FWONK) is a group of companies responsible for the promotion of the FIA Formula One World Championship and the exercising of the sport’s commercial rights. Headquartered in Englewood, Colorado, the company has reported its financial results for the fourth quarter and full year ending December 31, 2024. Operating through segments such as Formula One Group and Liberty Live Group, the company saw a 13.4% increase in total revenue, reaching $3.653 billion compared to $3.222 billion in 2023. Adjusted OIBDA for Formula One rose by 13% to $774 million, demonstrating continued growth in the sport’s commercial performance.
Formula One Group (NASDAQ:FWONK) also experienced a 9% rise in fan attendance, reaching 6.5 million spectators in 2024. Strengthening its global presence, the group extended race promotion agreements with key Grand Prix events, including those in Belgium, the Netherlands, China, Italy, and Monaco. It also secured a long-term extension with Crypto.com through 2030 and a new sponsorship deal with global lottery operator Allwyn. These partnerships highlight Formula 1’s growing commercial appeal and efforts to expand its brand reach. Meanwhile, Formula One Group (NASDAQ:FWONK)’s investment in Live Nation increased in value to $9.0 billion as of December 31, 2024, up from $7.625 billion in the previous quarter.
Looking forward, Formula One Group (NASDAQ:FWONK) remains committed to strategic expansion and operational efficiency. The company aims to capitalize on the continued success of Formula 1, integrate MotoGP into its portfolio, and optimize its business structure to enhance shareholder value. With a strong financial foundation and increasing global engagement, FWONK is well-positioned for sustained growth in the sports and entertainment industry. As of Q4 2024, Resnick held over 3.6 million shares of the company, valued at $337 million, making the stock 6th on the list of top 10 stocks to buy according to Jericho Capital Asset Management.
5. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders as of Q4: 262
Jericho Capital Asset Management’s Equity Stake: $358.83 Million
OpenAI and Meta Platforms, Inc. (NASDAQ:META) are in discussions with Reliance Industries to expand their artificial intelligence (AI) footprint in India. OpenAI has identified the Indian company as a potential distribution partner for its AI products, including ChatGPT, allowing Reliance to enhance product distribution and advertising across India’s growing AI market. Additionally, Reliance is considering selling OpenAI’s models to Indian businesses via an application programming interface (API), enabling enterprises to integrate advanced AI capabilities into their operations. To align with India’s data sovereignty principles, OpenAI’s models could be hosted locally within Reliance’s infrastructure, ensuring that sensitive customer data remains within national borders.
Meta Platforms, Inc. (NASDAQ:META) is also exploring a partnership with Reliance to strengthen its position in India’s AI sector. Having previously invested in Jio telecommunications, Meta aims to leverage this collaboration to expand its digital and AI initiatives in the country. This potential alliance would reinforce Meta’s leadership in Indian technological innovation while benefiting from Reliance’s vast market presence. However, Indian regulators are closely monitoring the influence of foreign AI firms as they work on policies to balance technological advancements with the protection of domestic innovation. The evolving regulatory landscape will play a key role in shaping how these global tech giants operate within India’s AI ecosystem.
Meta Platforms, Inc. (NASDAQ:META), meanwhile, continues to invest heavily in AI infrastructure, with projected expenses reaching up to $119 billion for 2025. The company is expanding its Meta Training and Inference Accelerator (MTIA) program, aiming to develop in-house AI chips to reduce reliance on Nvidia. Despite previous setbacks, Meta’s first AI inference chip for recommendation systems has been successful, highlighting its ambition to take greater control over its AI ecosystem. Financially, Meta’s rapid AI advancements have driven strong performance, with Q4 2024 revenue surging 21% year-over-year to $48.4 billion, exceeding analyst expectations. Earnings per share (EPS) also jumped 50% to $8.02, further solidifying Meta’s dominance in digital advertising and AI-driven growth.
Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on an investment, accounting for the timing and magnitude of cash flows over the holding period.
For META, our 22% IRR aligns closely with the company’s compounded growth in earnings per share (EPS) and free cash flow per share during the 6 years holding period.
Looking ahead, Meta is expected to grow its revenues, earnings, and free cash flow per share at mid-teens rates over the next two years. There’s a good possibility that it could exceed these estimates, considering the breadth of growth initiatives currently in place, such as advancements in Al, monetization of Reels, expansion into business messaging, and the ongoing development of the metaverse…” (Click here to read the full text)
4. Live Nation Entertainment, Inc. (NYSE:LYV)
Number of Hedge Fund Holders as of Q4: 60
Jericho Capital Asset Management’s Equity Stake: $415.45 Million
Live Nation Entertainment, Inc. (NYSE:LYV), a global leader in live event promotion and ticket sales, reported record-breaking financial results for 2024, reflecting the surging demand for live music. The company saw its concert attendance rise by 4%, with 151 million fans attending over 50,000 events worldwide—an increase of 9% from the previous year. This growth contributed to a record-high adjusted operating income (AOI) for its concerts segment, which surged by 65% to $530 million, with margins reaching 2.8%.
Live Nation Entertainment, Inc. (NYSE:LYV)’s overall financial performance was strong, with operating income reaching $825 million and adjusted operating income hitting $2.15 billion. The company also exceeded market expectations, reporting earnings of $0.56 per share for the quarter that ended in December 2024, beating analyst estimates by $1.70. Revenue for the quarter came in at $5.68 billion, surpassing projections by $22 million. CEO Michael Rapino highlighted 2024 as the biggest year yet for live music, with 2025 expected to be even stronger, driven by a robust global concert pipeline and an increasing number of stadium shows. To support this momentum, Live Nation Entertainment, Inc. (NYSE:LYV) is investing in music-centric venues and expanding its support for artists, with investments in performers more than doubling over the past five years.
Looking ahead, the company remains focused on long-term growth by reinvesting in the live music industry while enhancing the fan experience. Live Nation Entertainment, Inc. (NYSE:LYV)’s strategy includes building new venues to accommodate rising demand, ensuring its operating income and AOI continue to grow at double-digit rates. As live music remains a dominant force in global entertainment, the company’s commitment to artists, fans, and infrastructure positions it for continued success in the coming years.
By the end of Q4 2024, Resnick owned more than 3.2 million shares of Live Nation Entertainment, Inc. (NYSE:LYV), with a total value of approximately $415.45 million. This positioned the stock as the fourth-highest on the list of top 10 stocks to buy according to Jericho Capital Asset Management.
3. DocuSign, Inc. (NASDAQ:DOCU)
Number of Hedge Fund Holders as of Q4: 51
Jericho Capital Asset Management’s Equity Stake: $427.64 Million
DocuSign, Inc. (NASDAQ:DOCU), a leading provider of electronic agreement solutions, continues to expand its global reach, serving approximately 1.7 million clients across 180 countries as of 2025. The company ensures compliance with key regulations, including the U.S. ESIGN Act and the European Union’s eIDAS framework, making its digital signatures legally recognized and secure. In fiscal 2025, the company launched its AI-powered agreement management platform, DocuSign IAM, which has gained strong traction among customers. CEO Allan Thygesen highlighted the company’s revenue growth and profitability, emphasizing its well-positioned future in the digital agreement industry.
For the fourth quarter of fiscal 2025, DocuSign, Inc. (NASDAQ:DOCU) reported a total revenue of $776.3 million, marking a 9% year-over-year increase, with subscription revenue contributing $757.8 million. Billings grew by 11% to $923.2 million, reflecting strong customer demand. The company’s net income per diluted share rose to $0.39 from $0.13 in the previous year. Operating cash flow was $307.9 million, up from $270.7 million the previous year, with free cash flow reaching $279.6 million. By the end of the quarter, DocuSign held $1.1 billion in cash, cash equivalents, and investments and repurchased $161.7 million in common stock.
For the full fiscal year 2025, DocuSign, Inc. (NASDAQ:DOCU) generated $2.98 billion in total revenue, an 8% year-over-year increase, driven by $2.90 billion in subscription revenue. Billings reached $3.1 billion, growing 7% from the previous year. The company maintained a strong gross margin at 79.1%. Net income per diluted share also saw a significant increase, reaching $5.08 compared to $0.36 in FY24. The company also expanded its share repurchase program, buying back $683.5 million worth of stock compared to $145.5 million in the previous year.
As businesses increasingly adopt electronic signatures and automated workflows, DocuSign, Inc. (NASDAQ:DOCU) remains a key player in modernizing contract processes globally. With a solid financial foundation, a growing customer base, and a commitment to innovation, the company is well-prepared to capitalize on emerging opportunities in the industry, making it a top stock to buy according to Jericho Capital Asset Management.
2. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders as of Q4: 144
Jericho Capital Asset Management’s Equity Stake: $729.99 Million
Netflix, Inc. (NASDAQ:NFLX) remains a dominant force in the global streaming industry, offering a vast selection of movies, TV shows, and original productions to its massive subscriber base. The company delivered a record-breaking fourth-quarter earnings report for 2024, significantly exceeding expectations in revenue, subscriber growth, and profitability. Earnings per share surged by 102% to $4.27, while revenue increased by 16% to $10.25 billion. Netflix, Inc. (NASDAQ:NFLX) also added 18.91 million new subscribers, pushing its total user base to 301.63 million. Looking ahead, the company projects a 13% revenue increase in 2025, reaching $44 billion, driven by strong content performance and strategic pricing adjustments.
Following its stellar Q4 results, Netflix, Inc. (NASDAQ:NFLX)’s stock jumped 18%, with analysts expressing optimism about the company’s long-term prospects. Increased user engagement, organic subscriber growth, and higher average revenue per user are expected to fuel continued expansion. Since its initial public offering in 2002, Netflix, Inc. (NASDAQ:NFLX) has delivered extraordinary returns to investors, with shares skyrocketing by 80,080% as of March 19, 2025. A mere $1,250 investment in the company’s early days would now be worth over a million dollars, highlighting its impressive trajectory. Today, Netflix’s market capitalization exceeds $400 billion, and it remains a key player for long-term investors. In 2024 alone, the company generated $39 billion in revenue, marking a 16% year-over-year increase and an astounding 609% growth compared to a decade ago. As Netflix continues to scale its business and innovate within the streaming industry, it remains a strong contender for future growth and investment opportunities.
As of Q4 2024, Jericho Capital Asset Management significantly increased its holdings in Netflix, Inc. (NASDAQ:NFLX) to 819,000 shares, marking a 31% rise from 629,000 shares in Q3. The fund’s stake in the company is now valued at over $729 million. Insider Monkey’s database indicated that 144 hedge funds out of the 1,009 hedge funds held stakes in the company at the end of Q4 2024, with a value of nearly $19.61 billion, as opposed to 121 funds in Q3.
Nightview Capital stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its Q4 2024 investor letter:
“Core Opportunity: Netflix, Inc. (NASDAQ:NFLX) has cemented its position as the global leader in streaming while rapidly expanding into advertising and live events. With consumer spend across its regions at only 6-7% penetration, we believe the company has continued runway for growth.
Competitive Advantage: Operational Excellence: In the latest quarter, Netflix reported 15% YoY revenue growth to $9.8 billion and a 52% increase in EBIT to $2.9 billion, and as we have discussed for years, the promise of operating leverage has shown up dramatically
Subscriber Growth: Netflix added -22.5 million net new subscribers globally in the first three quarters of 2024, maintaining engagement levels of two hours per day per member-a remarkable achievement in a competitive market…” (Click here to read the full text)
1. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders as of Q4: 95
Jericho Capital Asset Management’s Equity Stake: $904.70 Million
AppLovin Corporation (NASDAQ:APP), a leading mobile technology company based in Palo Alto, California, specializes in helping developers market, monetize, and analyze their apps through platforms like MAX, AppDiscovery, and SparkLabs. In its financial results for the fourth quarter and full year ending December 31, 2024, the company reported impressive growth. Q4 revenue surged 44% year-over-year to $1.37 billion, while net income skyrocketed 248% to $599.2 million. For the full year 2024, total revenue reached $4.71 billion, marking a 43% increase from 2023, with net income soaring 343% to $1.58 billion.
AppLovin Corporation (NASDAQ:APP)’s advertising business was the primary driver of this growth, with Q4 advertising revenue jumping 73% year-over-year to $999.5 million. Full-year advertising revenue increased by 75%, reflecting AppLovin’s success in expanding its marketing platform. However, the apps revenue segment experienced a slight 1% decline in Q4 2024, though it still managed a 3% annual increase. The company remains focused on strengthening its core advertising business, which now accounts for the majority of its revenue.
AppLovin Corporation (NASDAQ:APP) also executed significant shareholder returns, retiring and withholding 1.6 million shares in Q4 and 25.7 million shares over the full year, totaling $2.1 billion in buybacks. Additionally, the company generated strong cash flow, with $701 million in net cash from operating activities in Q4 and $2.1 billion for the year. Free cash flow mirrored these figures, demonstrating financial stability and effective capital allocation.
Looking ahead, AppLovin Corporation (NASDAQ:APP) has set optimistic guidance for the first quarter of 2025, forecasting revenue between $1.355 billion and $1.385 billion. Advertising revenue is expected to range from $1.03 billion to $1.05 billion, while apps revenue is projected between $325 million and $335 million. The company also anticipates an adjusted EBITDA of $855 million to $885 million, with a robust margin of 63% to 64%. With continued investment in its advertising ecosystem and strategic initiatives, AppLovin is well-positioned for further growth in the mobile technology sector.
ClearBridge Mid Cap Strategy stated the following regarding AppLovin Corporation (NASDAQ:APP) in its Q4 2024 investor letter:
“Stock selection in IT was the greatest contributor to performance on strength in AppLovin Corporation (NASDAQ:APP) and Marvell. AppLovin is the world’s leading mobile game and app advertising platform, providing software for marketing and monetization, powered by its proprietary AI targeting engine Axon. We see opportunity for AppLovin to continue to expand and grow its share of the market for mobile app marketing at a time when mobile gaming ad spend is recovering from a higher-rate-driven trough. We also see the potential for the company to expand its addressable market to include e-commerce advertising, around which initial forays have been encouraging. With strong incremental margins and management keeping expenses controlled, the company should be able to drive significant free cash flow growth as revenue continues to scale.”
Overall, AppLovin Corporation (NASDAQ:APP) ranks first on our list of top 10 stocks to buy according to Jericho Capital Asset Management. While we acknowledge the potential for APP 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. If you are looking for an AI stock that is more promising than APP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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