In this article, we discuss the 10 best Robinhood stocks to buy according to hedge funds. If you want to skip our detailed analysis of these stocks, go directly to 5 Best Robinhood Stocks To Buy According To Hedge Funds.
It has been astonishing to witness the incredible rise of stock trading applications in the past few years as tech-led disruption upends the finance markets around the globe. One of the biggest winners from this change has been Robinhood Markets, Inc. (NASDAQ:HOOD), a California-based financial services firm that offers commission-free trades. The reason that these applications are so popular is that they have given more power to retail investors. The Robinhood business is worth more than $11 billion and has over 20 million funded accounts.
Retail investors have become a dominant market force through the use of Robinhood Markets, Inc. (NASDAQ:HOOD). Latest figures reveal that users on the platform who engage in trades have an average age of just thirty one. Over half of the total users on the platform are first time traders. The company, founded in 2013, debuted on the market in 2021 and was valued at more than $32 billion at the time. Since then, inflationary pressures and recession fears have pummeled growth stocks, although they are now starting to recover from these challenges.
Some of the top Robinhood stocks to buy according to hedge funds include Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Walt Disney Company (NYSE:DIS), among others discussed in detail below. Vlad Tenev, the CEO of Robinhood Markets, Inc. (NASDAQ:HOOD), recently highlighted how the advent of stocks trading apps had transformed finance, with individual stock trades going up even as the popularity of index funds reaches new highs.
“Our surviving competitors have been forced to adopt our business model and even to adapt their user interfaces to be similar to ours. And Robinhood is no longer just the trading app, we’ve been rapidly evolving into a broad financial services platform serving multiple financial needs, including spending, savings, and retirement. Our ambition and the opportunity ahead of us has expanded greatly. And so, it still feels like we are at the beginning of our journey.
We’re still No. 2 in retail trading market share in the US. We’re at the very early stages of expanding beyond trading, with just over $1 billion of retirement assets on our platform, out of the over $12 trillion US IRA market. We’re also just now beginning to take our first steps to serve customers outside the US, where we believe the need and opportunity for innovation in financial services is even greater than it is domestically.
As we continue to execute on our strategy, we believe we can grow into one of the largest and most profitable financial companies in the world.”
Our Methodology
These were selected using the Robinhood Investor Index as well as research using third party tools to identify the most popular stocks on trading application Robinhood Markets, Inc. (NASDAQ:HOOD). The analyst ratings of each stock are also discussed to provide readers with some context for their investment choices. Hedge fund sentiment was included as a classifier as well. The hedge fund sentiment around each stock was calculated using the data of around 900 hedge funds tracked by Insider Monkey in the third quarter of 2023.
A Traders Desk showing different stocks, with traders hands hovering above the screen.
Best Robinhood Stocks To Buy According To Hedge Funds
10. BlackBerry Limited (NYSE:BB)
Number of Hedge Fund Holders: 19
BlackBerry Limited (NYSE:BB) is a Canadian firm that provides security software services. On December 18, investment advisory RBC Capital maintained a Sector Perform rating on BlackBerry Limited (NYSE:BB) stock with a price target of $4.5, noting the firm was expected to provide more details on the liquidity and cost-restructuring plan now that it is no longer proceeding with the IPO of the IoT business.
Among the hedge funds being tracked by Insider Monkey, Canada-based investment firm Fairfax Financial Holdings is a leading shareholder in BlackBerry Limited (NYSE:BB) with 46 million shares worth more than $220 million.
Just like Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Walt Disney Company (NYSE:DIS), BlackBerry Limited (NYSE:BB) is one of the best Robinhood stocks to buy according to hedge funds.
9. Snap Inc. (NYSE:SNAP)
Number of Hedge Fund Holders: 25
Snap Inc. (NYSE:SNAP) is a California-based camera company. On December 19, investment advisory Loop Capital maintained a Buy rating on Snap Inc. (NYSE:SNAP) stock and raised the price target to $21 from $15, backing the firm as a gen-AI winner.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm SRS Investment Management is a leading shareholder in Snap Inc. (NYSE:SNAP) with 52 million shares worth more than $469 million.
8. Airbnb, Inc. (NASDAQ:ABNB)
Number of Hedge Fund Holders: 44
Airbnb, Inc. (NASDAQ:ABNB) operates a platform that enables hosts to offer stays and experiences to guests worldwide. On October 31, Mizuho analyst James Lee maintained a Neutral rating on Airbnb, Inc. (NASDAQ:ABNB) stock and lowered the price target to $130 from $150.
Among the hedge funds being tracked by Insider Monkey, Florida-based Citadel Investment Group is a leading shareholder in Airbnb, Inc. (NASDAQ:ABNB) with 3 million shares worth more than $422 million.
In its Q3 2023 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Airbnb, Inc. (NASDAQ:ABNB) was one of them. Here is what the fund said:
“Top contributors to performance for the quarter included global online travel marketplace Airbnb, Inc. (NASDAQ:ABNB). Airbnb again defied fears about weaker travel demand as it experienced continued recovery in cross-border and urban nights and resilient pricing trends, though travel volumes remain mixed.”
7. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 80
Walmart Inc. (NYSE:WMT) operates as a retail firm. On November 14, investment advisory Jefferies maintained a Buy rating on Walmart Inc. (NYSE:WMT) stock and raised the price target to $195 from $190.
Among the hedge funds being tracked by Insider Monkey, Texas-based investment firm Fisher Asset Management is a leading shareholder in Walmart Inc. (NYSE:WMT) with 9.1 million shares worth more than $1.4 billion.
6. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 81
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company. On December 18, investment advisory RBC Capital maintained an Outperform rating on Tesla, Inc. (NASDAQ:TSLA) stock and lowered the price target to $300 from $301.
At the end of the third quarter of 2023, 81 hedge funds in the database of Insider Monkey held stakes worth $5.8 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 79 in the previous quarter worth $6.5 billion.
In addition to Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Walt Disney Company (NYSE:DIS), Tesla, Inc. (NASDAQ:TSLA) is one of the best Robinhood stocks to buy according to hedge funds.
Here is what Baron Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q2 2023 investor letter:
“Many factors contributed to the strong performance of our largest Disruptive Growth position, Tesla, Inc. (NASDAQ:TSLA), in the period. Investors’ concerns regarding Tesla in 2022 continue to dissipate, and the company’s business has continued to grow materially, although at below peak margins. Tesla’s deliveries in China are recovering. The company’s newest factory in Texas has ramped production and should contribute to improved domestic sales and margins. U.S. government policies have lowered the cost to own Tesla vehicles, while also reducing the company’s battery production expenses.
We continue to believe that Tesla is only scratching the surface of its potential. We regard announced partnerships between Tesla and its competitors in the quarter as important. In early June, Tesla agreed to provide Ford Motors access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV manufacturers, including General Motors, Rivian, and Volvo, quickly followed suit. We expect additional charging partnerships to ensue. In our view, these relationships validate Tesla’s charging technology and infrastructure as superior to other standards. Consolidation around a single technology should accelerate charging infrastructure deployment, diminish the risk of Tesla’s technology becoming obsolete, and lessen a key concern of hesitant EV purchasers. EV adoption is at a tipping point. And Tesla, with its approximately 60% domestic market share of EVs, should be the most important beneficiary of this shift…” (Click here to read the full text)
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Disclosure. None. 10 Best Robinhood Stocks To Buy According To Hedge Funds is originally published on Insider Monkey.