In this article, we discuss 10 most active stocks to buy now.
Morgan Stanley’s investment chief, Mike Wilson, said on May 11 that the current decline of the stock market has not yet bottomed. Rampant inflation and plunging corporate earnings will drive further downside for the stock market. Earnings are tampered by compressed margins and slowing top-line growth. Mike Wilson’s base case scenario for the economy involves the S&P 500 trading at 3,900 one year from now, reflecting a possible downside of 3% from present levels. In a bear case scenario, the benchmark index would trade 16% lower to 3,350.
The New York Times reported on May 9 that the S&P 500 has now posted five consistent weeks of declines, marking the index’s largest streak of losses since June 2011. Some Wall Street experts remain optimistic about the stock market, despite the sharp benchmark lows driven by the continuing Chinese lockdowns, raging inflation, soaring oil prices, and global supply tightness, as well as the war in Ukraine. Charles Schwab disclosed on May 6 that of the 436 S&P 500 constituents who posted Q1 results, 79% reported above consensus earnings per share and 67% announced revenue beats in the quarter.
Given the continuous interest of investors in the stock market despite uncertain macro conditions and ongoing volatility, it is prudent to seek out the most active stocks on Wall Street to see what the masses are pouring into. Some of the most notable active stocks to buy now include Coinbase Global, Inc. (NASDAQ:COIN), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), among others discussed in detail below.
Photo by Austin Distel on Unsplash
Our Methodology
These stocks were picked keeping in mind the trading volume, picking the securities that had a volume of over 60 million as of May 11. The analyst ratings and business fundamentals of each stock are also discussed to provide readers with further context for their investment choices.
Data from 900+ elite hedge funds tracked by Insider Monkey in Q4 2021 was used to identify the number of hedge funds that hold stakes in each company.
Most Active Stocks To Buy Now
10. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 134
Volume as of May 11: 141 million
Apple Inc. (NASDAQ:AAPL) is perhaps one of the most actively traded stocks on the market, with a volume of 141 million as of May 11. Apple Inc. (NASDAQ:AAPL), the American tech giant, posted above consensus earnings for the first fiscal quarter of 2022, with an EPS of $1.52 and a revenue of $97.28 billion.
On May 3, Morgan Stanley analyst Katy Huberty reiterated an Overweight rating and a $195 price target on Apple Inc. (NASDAQ:AAPL) shares, stating that based on data from Sensor Tower, she estimates that App Store net revenue growth accelerated to 8% year-over-year in April from March quarter growth of 6% year-over-year. The analyst’s 15% year-over-year June quarter forecast for App Store growth remains unchanged.
According to Insider Monkey’s fourth quarter data, Apple Inc. (NASDAQ:AAPL) was found in the public stock portfolios of 134 hedge funds, compared to 120 funds in the earlier quarter. The total stakes in Q4 amounted to $186 billion, up from $146 billion in Q3. Warren Buffett’s Berkshire Hathaway is the leading shareholder of the company, with more than 887 million shares worth $157.5 billion.
Here is what Berkshire Hathaway has to say about Apple Inc. (NASDAQ:AAPL) in its Q4 2021 investor letter:
“Apple Inc. (NASDAQ:AAPL) – our runner-up Giant as measured by its year end market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier. That increase sounds like small potatoes. But consider that each 0.1% of Apple’s 2021 earnings amounted to $100 million. We spent no Berkshire funds to gain our accretion. Apple’s repurchases did the job. It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our “share” of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple shares, an act we applaud. Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well.”
9. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 110
Volume as of May 11: 67 million
NVIDIA Corporation (NASDAQ:NVDA) was incorporated in 1993 and is headquartered in Santa Clara, California. NVIDIA Corporation (NASDAQ:NVDA) offers expertise in graphics, cloud computing, and networking solutions in the United States, Taiwan, China, and international markets. It is one of the most actively traded stocks, with a volume of 67 million as of May 11.
On May 3, Morgan Stanley analyst Joseph Moore resumed coverage of NVIDIA Corporation (NASDAQ:NVDA) with an Equal Weight rating and a $217 price target. The analyst said that while NVIDIA Corporation (NASDAQ:NVDA) remains one of the top growth names in the semiconductor sector, he is concerned about softness in gaming and the high valuation compared to peers. He has accounted for a “significant deceleration” in gaming that will lead to a “modestly challenging” 2023 for NVIDIA Corporation (NASDAQ:NVDA), offset by its “robust” data center exposure.
According to the fourth quarter database of Insider Monkey, NVIDIA Corporation (NASDAQ:NVDA) was found in the public investment portfolios of 110 hedge funds, compared to 83 funds in the last quarter. Ken Fisher’s Fisher Asset Management is a significant shareholder of the company, with more than 5 million shares worth $1.50 billion.
Here is what RiverPark Long/Short Opportunity Fund has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter:
“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.
We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”
8. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 61
Volume as of May 11: 105.1 million
Roblox Corporation (NYSE:RBLX) is a California-based online entertainment platform, offering its services via Roblox Studio, Roblox Client, Roblox Education, and Roblox Cloud segments. Roblox Corporation (NYSE:RBLX)’s trading volume on May 11 was 105.1 million.
Roblox Corporation (NYSE:RBLX) reported financial results for the first quarter of 2022 on May 10. The company posted a loss per share of $0.27, missing market estimates by $0.07. The $623.21 million revenue dropped 3.23% from the prior-year quarter, falling short of analysts’ predictions by $15.01 million.
On May 12, Needham analyst Bernie McTernan maintained a Buy rating on Roblox Corporation (NYSE:RBLX) but lowered the firm’s price target on the stock to $40 from $60 after the Q1 earnings miss. The analyst remains positive as the company is leveraging monetization opportunities on its platform, actively trying to convert engagement into bookings. The analyst also cited Roblox Corporation (NYSE:RBLX)’s advertising opportunity, which he expects will start contributing to revenue next year and grow to more than $1 billion by FY 2027.
According to Insider Monkey’s Q4 data, 61 hedge funds were long Roblox Corporation (NYSE:RBLX), up from 50 funds in the last quarter. The collective stakes owned in the fourth quarter exceeded $4 billion, compared to $3.5 billion in Q3. Jim Simons’ Renaissance Technologies is the largest position holder in the company, with 5.3 million shares worth $557 million.
Like Coinbase Global, Inc. (NASDAQ:COIN), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), Roblox Corporation (NYSE:RBLX) is one of the most active stocks to buy now.
Here is what Tao Value has to say about Roblox Corporation (NYSE:RBLX) in its Q4 2021 investor letter:
“Roblox (RBLX) got significant more attention from both institutional & retail investors after Facebook announced to rename itself as Meta Platforms. I believe the price appreciation is largely attributed to the increased attention. On the business side, Roblox rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in the virtual world. Apple in its iOS 14.5 rolled out an impactful change for the digital advertising landscape by requiring all apps to ask users to “opt in”.
7. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 53
Volume as of May 11: 69.9 million
Ford Motor Company (NYSE:F) is a Michigan-based automotive firm that manufactures and sells a range of trucks, cars, sport utility vehicles, electric vehicles, and Lincoln luxury vehicles to customers worldwide. As of May 11, Ford Motor Company (NYSE:F) was one of the most active American stocks, with a trading volume of approximately 70 million.
On April 27, Ford Motor Company (NYSE:F) reported its Q1 2022 results, announcing earnings per share of $0.38, topping analysts’ predictions by $0.01. The $32.11 billion revenue also outperformed Street estimates by $457.31 million.
Wells Fargo analyst Colin Langan on May 11 downgraded Ford Motor Company (NYSE:F) to Underweight from Overweight, slashing the price target to $12 from $24. According to the analyst, battery electric vehicle costs have “massively risen” and raw material supply is constricted. However, strict American regulations possibly require more BEV sales. The analyst noted that Ford Motor Company (NYSE:F) has historically relied on F-Series for more than 60% of its profits, making possible substitution with the electric version a “material risk”. He also sees headwinds from price normalization, inflationary pressure, and the 2023 UAW contract negotiations.
Among the hedge funds tracked by Insider Monkey, 53 funds were bullish on Ford Motor Company (NYSE:F) at the end of December 2021, compared to 51 funds in the last quarter. D E Shaw is the biggest shareholder of the company, with 28.4 million shares worth $590 million.
In its Q1 2020 investor letter, Greenlight Capital Fund highlighted a few stocks and Ford Motor Company (NYSE:F) was one of them. Here is what the fund said:
“General Motors (GM) was a disappointment. The damage from last year’s strike consumed most of the cash flow GM would have otherwise generated in 2019. We had expected a strong bounce back in earnings and cash flow in 2020, but the annual guidance, while meeting Wall Street expectations, was worse than we expected. Further, the cash burned during the strike needed to be re-earned in order to protect GM’s investment grade rating. Pre-crisis, there would have been, at best, a minimal share repurchase late in the year. At the analyst day, our hopes that 2020 would finally be the year were dashed. We sold our stock. Over our five-year holding period, we made a 9.6% IRR on GM. In the difficult environment, its most comparable peer, Ford Motor Company (NYSE:F), lost about half its value.”
6. SoFi Technologies, Inc. (NASDAQ:SOFI)
Number of Hedge Fund Holders: 24
Volume as of May 11: 76.4 million
SoFi Technologies, Inc. (NASDAQ:SOFI) was founded in 2011 and is headquartered in San Francisco, California. The company offers digital financial services, operating through three segments – Lending, Technology Platform, and Financial Services.
On May 10, SoFi Technologies, Inc. (NASDAQ:SOFI) posted its Q1 2022 results, reporting a GAAP loss per share of $0.14, in line with analysts’ consensus estimates. The revenue of $321.73 million climbed 48.9% year-over-year, ahead of Street estimates by $37.74 million.
Credit Suisse analyst Timothy Chiodo on May 11 reiterated a Neutral rating on SoFi Technologies, Inc. (NASDAQ:SOFI) and lowered the firm’s price target on the stock to $9.50 from $15.50 following quarterly results. The analyst noted that SoFi Technologies, Inc. (NASDAQ:SOFI) came in ahead of its updated Q1 guidance, and reported a slightly increased full year 2022 revenue guide. While the analyst continues to see SoFi Technologies, Inc. (NASDAQ:SOFI) as comparatively well positioned among American Neobanks, he slightly lowered his estimates given the underlying trends during Q1.
According to Insider Monkey’s fourth quarter database, 24 hedge funds were bullish on SoFi Technologies, Inc. (NASDAQ:SOFI), with collective stakes worth $826.2 million, compared to 33 funds in the last quarter, holding stakes in the company valued at $852.8 million. Jim Davidson, Dave Roux, and Glenn Hutchins’ Silver Lake Partners is the leading shareholder of SoFi Technologies, Inc. (NASDAQ:SOFI), with 31.15 million shares worth $492.5 million.
In addition to Coinbase Global, Inc. (NASDAQ:COIN), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), institutional investors are pouring into SoFi Technologies, Inc. (NASDAQ:SOFI).
Here is what Altron Capital Management has to say about SoFi Technologies, Inc. (NASDAQ:SOFI) in its Q4 2021 investor letter:
“We have been building our position in SoFi over the last two quarters but have not yet written about our thesis until now. SoFi is an online financial technology company that started off refinancing student loans. This segment remains a big part of the company’s business, but they have more recently expanded their products to offer an entire suite of financial services including personal banking, investing, and credit. While their collection of products is still evolving and not yet complete, we believe the company is in the early stages of its inflection. The company nearly doubled its member count over the past year and is growing 50%+ despite its loan refinancing business taking a hit due to the COVID-related loan moratorium. Furthermore, the company is close to obtaining a bank charter through its acquisition of Golden Pacific Bancorp, a community bank based in Sacramento. A bank charter would allow SoFi to take in its own customer deposits, lowering its cost of capital and expanding the company’s breadth of financial offerings.
While SoFi is not the only online banking platform out there, we believe it could take a decent share of the financial services market. Banking is a notoriously sticky business, as the inconvenience and hassle of switching banks prevent consumers from jumping to competitors regardless of cost. This is one of the reasons that traditional banks are one of the few businesses to have truly been disrupted by technology. We think SoFi is well on its way to changing that and creating a new paradigm for the future of consumer banking and financial services.
The factors that will ultimately drive consumer adoption of online banking are cost and convenience. In our opinion, SoFi is best positioned to drive consumers away from the legacy banking model. Their one-stop-shop approach for financial services and their lack of a brick-and-mortar branch network to maintain may eventually propel them into becoming one of the larger players in the banking industry in the United States…” (Click here to see the full text)
5. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 57
Volume as of May 11: 66 million
Coinbase Global, Inc. (NASDAQ:COIN) is one of the most active stocks as of May 11, with a trading volume of 66 million. Coinbase Global, Inc. (NASDAQ:COIN) offers financial infrastructure and technology for the global crypto universe.
Coinbase Global, Inc. (NASDAQ:COIN) posted its financial results for the first fiscal quarter of 2022. The company reported a loss per share of $1.26, behind analysts’ estimates by $2.17. The $1.17 billion revenue dropped 35.24% year-over-year, missing Street estimates by $309.61 million.
On May 11, Needham analyst John Todaro maintained a Buy rating on Coinbase Global, Inc. (NASDAQ:COIN) but lowered the price target to $173 from $360. The company missed expectations with its Q1 revenue and trading volumes declined notably, the analyst tells investors in a research note. While he cut his FY 2022 estimates due to ongoing weakness in retail trading volumes, he “remains excited” about the longer term growth opportunities for Coinbase Global, Inc. (NASDAQ:COIN), as well as the blockchain rewards and cloud subscription services.
According to Insider Monkey’s database, 57 hedge funds were bullish on Coinbase Global, Inc. (NASDAQ:COIN) at the end of December 2021, compared to 50 funds in the last quarter. Cathie Wood’s ARK Investment Management is the leading shareholder of the company, with 5.45 million shares worth about $1.4 billion.
Here is what Longleaf Partners Fund has to say about Coinbase Global, Inc. (NASDAQ:COIN) in its Q4 2021 investor letter:
“We also have seen plenty of IPO/SPAC craziness showing both that private players need public markets more than they admit and that there is more volatility embedded in these newer companies than a private quarterly mark might admit. As for how efficient both the private and public markets are, we would encourage you to really delve into some of those multi-hundred-page S1s for many of the newest public companies to see the huge gap between the last valuation at which the company was funded and/or granted shares to its executives and the often much higher price at which the company went public – Coinbase is a prime example.”
4. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 69
Volume as of May 11: 135.9 million
One of the most actively traded securities on Wall Street as of May 11 was Advanced Micro Devices, Inc. (NASDAQ:AMD), with the volume reaching approximately 136 million. Advanced Micro Devices, Inc. (NASDAQ:AMD) is a California-based semiconductor company.
On May 3, Advanced Micro Devices, Inc. (NASDAQ:AMD) announced its Q1 financial results, posting earnings per share of $1.13, beating market estimates by $0.20. Revenue for the period grew about 71% year-over-year to $5.89 billion, outperforming analysts’ consensus estimates by $313.37 million.
Craig-Hallum analyst Christian Schwab on May 4 maintained a Buy recommendation on Advanced Micro Devices, Inc. (NASDAQ:AMD) but lowered the firm’s price target on the shares to $130 from $160 on decreased valuation multiple. The analyst observed that Advanced Micro Devices, Inc. (NASDAQ:AMD) posted another solid quarter and reaffirmed expectations for strength to continue.
Among the hedge funds tracked by Insider Monkey, 69 funds were long Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of Q4 2021, up from 65 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management is the leading shareholder of the company, with about 20 million shares worth $2.8 billion.
Here is what Carillon Tower Advisers has to say about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2021 investor letter:
“Advanced Micro Devices (AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”
3. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 33
Volume as of May 11: 72 million
Palantir Technologies Inc. (NYSE:PLTR) is a Colorado-based company that develops and deploys software platforms in the United States to assist public and government agencies in counterterrorism operations. About 72 million Palantir Technologies Inc. (NYSE:PLTR) shares were traded on May 11, making it one of the most active stocks to buy now.
Palantir Technologies Inc. (NYSE:PLTR) on May 9 posted earnings for Q1, reporting an EPS of $0.02, missing consensus estimates by $0.02. Revenue for the period grew 30.81% year-over-year to $446.36 million, topping Street forecasts by $2.85 million.
On May 10, Deutsche Bank analyst Brad Zelnick reiterated a Hold rating on Palantir Technologies Inc. (NYSE:PLTR) and lowered the firm’s price target on the shares to $11 from $15 following the “mixed” Q1 results. While the core metrics “were fine”, backlog growth decelerated significantly and Q2 guidance was below Street estimates, the analyst told investors.
According to Insider Monkey’s fourth quarter database, 33 hedge funds held long positions in Palantir Technologies Inc. (NYSE:PLTR), with collective stakes worth $1.2 billion, compared to 35 funds in the last quarter, holding stakes in the company valued at $1.6 billion. Ken Griffin’s Citadel Investment Group is a significant shareholder of the company, with 7.7 million shares worth about $141 million.
Here is what Tao Value has to say about Palantir Technologies Inc. (NYSE:PLTR) in its Q4 2021 investor letter:
“We have no new position this quarter and have made below changes to our portfolio. We also sold Palantir (PLTR) as I identified it subject to high retail bubble risk (using above method) and are not part of our core “Mindful Compounder” holdings.”
2. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 30
Volume as of May 11: 85.1 million
NIO Inc. (NYSE:NIO) is a manufacturer of smart electric vehicles from China, focusing its portfolio mainly on electric SUVs and smart electric sedans. NIO Inc. (NYSE:NIO) was one of the most active stocks on Wall Street, with a trading volume of 85.1 million on May 11.
On May 2, NIO Inc. (NYSE:NIO) reported total April sales of 5,074 units, slipping 49% month-over-month and 29% year-over-year. Morgan Stanley analyst Tim Hsiao noted that NIO Inc. (NYSE:NIO)’s vehicle production and delivery were “severely affected” by supply chain tightness given COVID-19 lockdowns in China. The analyst said that investors will likely keep a close watch on the resumption progress after May holidays in China, keeping an Overweight rating and a $34 price target on NIO Inc. (NYSE:NIO) shares.
According to Insider Monkey’s data, NIO Inc. (NYSE:NIO) was found in the public stock portfolios of 30 hedge funds, with combined stakes of $813.6 million. Ray Dalio’s Bridgewater Associates is a significant shareholder of the company, with more than 3 million shares worth $97.20 million.
1. Zynga Inc. (NASDAQ:ZNGA)
Number of Hedge Fund Holders: 47
Volume as of May 11: 62.2 million
Zynga Inc. (NASDAQ:ZNGA) was founded in 2007 and is headquartered in San Francisco, California. The company operates as a developer of social games in the United States and internationally. Zynga Inc. (NASDAQ:ZNGA) is one of the most actively traded stocks as of May 11, with a volume of 62.2 million.
Zynga Inc. (NASDAQ:ZNGA) reported on May 9 earnings for the first fiscal quarter of 2022. The company announced an EPS of $0.09, beating estimates by $0.01. The $691.20 million revenue fell short of analysts’ predictions by $38.88 million.
On April 19, Goldman Sachs analyst Eric Sheridan assumed coverage of Zynga Inc. (NASDAQ:ZNGA) with a Not Rated rating. The analyst assumed coverage of 10 companies in the interactive entertainment sector.
According to Insider Monkey’s Q4 data, 47 hedge funds were bullish on Zynga Inc. (NASDAQ:ZNGA), compared to 52 funds in the earlier quarter. Ric Dillon’s Diamond Hill Capital held the biggest stake in the company, with 25.3 million shares worth over $162 million.
Here is what ClearBridge Mid Cap Growth Strategy has to say about Zynga Inc. (NASDAQ:ZNGA) in its Q3 2021 investor letter:
“A handful of our rapid growers hit tough earnings comparisons over the summer after experiencing a surge in demand in the second quarter of 2020 as companies moved to remote work and consumers were confined to their homes. Zynga, which develops games played on social and mobile platforms, experienced a significant uptick in new customers last year but has not seen as much retention and gaming usage as the economy has reopened.”
You can also take a look at 10 Fertilizer Stocks to Buy Today and 10 Commodity Dividend Stocks With Over 4% Yield.
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Disclosure: None. 10 Most Active Stocks To Buy Now is originally published on Insider Monkey.
