In this article, we will examine the 11 Best Stocks to Buy According to Jim Simons’ Renaissance Technologies.
Renaissance Technologies has not had the best of runs in an action-filled year that has seen equity markets rally to record highs. The hedge fund’s flagship fund, the Renaissance Institutional Equities Fund, was up by 5.6% in the first seven months of the year as Renaissance Institutional Diversified Alpha rallied 6.5%.
Nevertheless, the funds have lost money in the last two months even as the S&P 500 rallied 14% to record highs amid heightened bullish momentum. The underperformance in recent months comes as the computer-driven hedge fund is caught up in a long, slow bleed of systematic losses.
Founded by late billionaire Jim Simons, the algorithm-driven hedge fund had an impressive 2024, with its two main funds, Renaissance Institutional Equities Fund and Renaissance Institutional Diversified, returning 22.7% and 15.6%, respectively.
The impressive run in 2024 came as the quant hedge fund focused on computer algorithms to identify investment opportunities. The hedge fund’s investment strategy entails relying on computer algorithms to identify high-risk, high-reward opportunities.
With that in mind, let’s take a look at some of the Best Stocks to Buy According to Jim Simons’ Renaissance Technologies.
Jim Simons of Renaissance Technologies
Our Methodology
To identify the 11 Best Stocks to Buy According to Jim Simons’ Renaissance Technologies, we analyzed the firm’s 13F filing for the second quarter of 2025. From this disclosure, we focused on positions that also showed notable hedge fund interest, based on Q2 2025 data from Insider Monkey’s database. We also tracked each stock’s performance from the end of Q2 (June 30) to October 9, to provide an insight into whether the fund has been right or wrong about betting on the stock, so far. The list is presented in ascending order according to the dollar value of Renaissance Technologies’ stake in each stock.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Best Stocks to Buy According to Jim Simons’ Renaissance Technologies
11. AppLovin Corporation (NASDAQ:APP)
Renaissance Technologies Stake: $483,401,667
Stock Performance (end Q2-October 9): 71.19%
Number of Hedge Fund Holders: 109
AppLovin Corporation (NASDAQ:APP) is one of the best stocks to buy according to Jim Simons’ Renaissance Technologies. On October 1, BofA Securities raised its price target for AppLovin Corporation (NASDAQ:APP) from $580 to $860. The firm maintained a “Buy” rating on the stock, which it said is supported by a detailed review of about 400 direct-to-consumer eCommerce merchant websites using AppLovin’s advertising technology. The analysis identified specific product categories that are highly compatible with mobile game advertisements, including Apparel, Beauty & Fitness, Home & Garden, and Health & Wellness.
BofA now expects AppLovin to generate $3 billion in eCommerce net revenue for the calendar year 2026. This expectation is based on $7 billion in anticipated ad spend targeting these areas. The analysts projected that approximately 4,000 large advertisers will adopt AppLovin’s platform as a new advertising channel. They triangulated the figures using Shopify disclosures and market research. BofA highlighted potential upside if merchants with less than $10 million in gross merchandise value and additional product categories adopt AppLovin’s services.
AppLovin Corporation (NASDAQ:APP) is a software-based advertising and app monetization company. It operates through two segments, Advertising and Apps. The company also develops and publishes free-to-play mobile games through its studios and partners.
10. DoorDash, Inc. (NASDAQ:DASH)
Renaissance Technologies Stake: $607,446,984
Stock Performance (end Q2-October 9): 12.24%
Number of Hedge Fund Holders: 100
DoorDash, Inc. (NASDAQ:DASH) is one of the best stocks to buy according to Jim Simons’ Renaissance Technologies. DoorDash, Inc. (NASDAQ:DASH) announced on October 2 that it had finalized its acquisition of UK food delivery firm Deliveroo after receiving approval from the UK High Court. The deal was valued at approximately £2.9 billion (about $3.9 billion), with Deliveroo shareholders receiving 180 pence per share in cash; a 44% premium over Deliveroo’s share price when talks began. The transaction was first agreed between the boards of both companies in May 2025 and ratified by Deliveroo’s shareholders in June.
The combined company will operate in about 40–45 countries and is expected to handle around $90 billion (£67.7 billion) of orders annually. As such, DoorDash’s international footprint will increase across Europe, Asia, and the Middle East. Before the acquisition, DoorDash was present in more than 30 markets. In 2024, it delivered 2.5 billion orders, generating $10.7 billion in revenue; its largest market is the US, where it leads the food delivery sector.
DoorDash, Inc. (NASDAQ:DASH) is a local commerce platform. It operates the DoorDash Marketplace and Wolt Marketplace, which connect merchants, consumers, and independent contractors across more than 30 countries. The company’s services include on-demand delivery, white-label logistics, and subscription programs. It also offers advertising solutions to help merchants and consumer brands increase engagement.
9. United Therapeutics Corporation (NASDAQ:UTHR)
Renaissance Technologies Stake: $608,921,086
Stock Performance (end Q2-October 9): 54.51%
Number of Hedge Fund Holders: 44
United Therapeutics Corporation (NASDAQ:UTHR) is one of the best stocks to buy according to Jim Simons’ Renaissance Technologies. On October 2, Jefferies reiterated its “Buy” rating and a price target of $564 for United Therapeutics Corporation (NASDAQ:UTHR). This decision comes amid ongoing legal proceedings related to a patent dispute. The patent dispute involves interpretations of a recent Bayer case. Judge Andrews is currently reviewing letters from both parties about whether certain dependent claims (claims 5, 6, 9 & 17) have sufficient “patentable weight” for the case’s anticipation/obviousness analysis.
If only these dependent claims are found valid and infringed, United Therapeutics could block competitor Yutrepia or seek damages, but only for products or uses that meet the narrower requirements of those claims. The next step is a court order on the “patentable weight” issue for dependent claims; both parties can appeal the decision.
United Therapeutics Corporation (NASDAQ:UTHR) is a biotechnology company. It develops and commercializes therapies for pulmonary arterial hypertension (PAH) and other chronic and life-threatening conditions. Its key products include Remodulin, Tyvaso, Orenitram, and Unituxin.
8. GE Vernova, Inc. (NYSE:GEV)
Renaissance Technologies Stake: $622,493,118
Stock Performance (end Q2-October 9): 20.01%
Number of Hedge Fund Holders: 106
GE Vernova, Inc. (NYSE:GEV) is one of the best stocks to buy according to Jim Simons’ Renaissance Technologies. On October 1, RBC Capital Markets downgraded GE Vernova, Inc. (NYSE:GEV) stock from “Outperform” to “Sector Perform.” It also set the price target at $605, based on 13 times its 2030 earnings estimate of $12.2 billion.
RBC analysts stated that their decision is supported by the view that the market is already valuing GE Vernova on long-term earnings expectations that leave little room for further upside. The company continues to benefit from strong demand for electricity generation and grid infrastructure, as well as improved pricing and efficiency. However, RBC expects revenue growth in the power segment to slow toward the end of the decade compared to current consensus forecasts.
In the core power division, RBC predicts margins to reach 21% by 2028. This is above GE Vernova’s own target, and is boosted by higher service demand and factory expansion. RBC noted that new service contracts typically only begin to make an impact three to four years after equipment is installed, meaning contributions from recent sales may come later than consensus models assume.
GE Vernova, Inc. (NYSE:GEV) is a global energy company. It operates through three core segments: Power, Wind, and Electrification. The company delivers technologies that generate, transfer, and store electricity worldwide.
7. Gilead Sciences, Inc. (NASDAQ:GILD)
Renaissance Technologies Stake: $628,232,881
Stock Performance (end Q2-October 9): 4.54%
Number of Hedge Fund Holders: 71
Gilead Sciences, Inc. (NASDAQ:GILD) is one of the best stocks to buy according to Jim Simons’ Renaissance Technologies. On October 1, RBC analysts stated that Gilead Sciences, Inc. (NASDAQ:GILD) may face a negative impact if its key HIV medication, Biktarvy, is targeted by the proposed price cuts mentioned by President Trump. During an announcement related to a Pfizer deal, President Trump spoke about an unnamed drug that costs $137 per pill in the US and about $10 elsewhere. He vowed to lower the US price to between $15 and $18 per pill. RBC analysts say Biktarvy’s US list price ($140.53 per tablet) matches this description.
The analysts calculated that if Biktarvy is the target and prices are cut in the Medicaid channel, Gilead could see annual Biktarvy revenue drop about 12% to $10.6 billion. This could lower RBC’s valuation of Gilead by about 5%, or $4.70 per share.
However, the analysts conceded that Biktarvy may not be the target for several reasons. First, there is uncertainty about whether Trump’s reference was to list or net pricing. Second, there are questions about whether HIV medications would be an initial focus for pricing reforms. And lastly, there are indications that Biktarvy costs more than $10 in European markets.
RBC identified several other drugs with similar list prices ($135-$140 per pill), such as Pfizer’s Paxlovid, Madrigal’s Rezdiffra, BioMarin’s Kuvan, GSK’s Brexafemme, and Harmony’s Wakix. However, the analysts noted that these are less likely to be Trump’s target compared to Biktarvy.
Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company. It develops and commercializes therapies for viral diseases, oncology, and inflammatory conditions. Its leading portfolio includes drugs targeting HIV and hepatitis C, alongside newer products such as Biktarvy, Veklury (remdesivir), and Trodelvy for cancer.
6. Roblox Corporation (NYSE:RBLX)
Renaissance Technologies Stake: $641,894,527
Stock Performance (end Q2-October 9): 21.15%
Number of Hedge Fund Holders: 75
Roblox Corporation (NYSE:RBLX) is one of the best stocks to buy according to Jim Simons’ Renaissance Technologies. On October 2, BMO Capital lifted its price target on Roblox Corporation (NYSE:RBLX) to $160 from $150, while maintaining its “Outperform” rating. The firm cited strong engagement metrics that prompted it to increase its estimates for Roblox’s third- and fourth-quarter 2025 bookings.
BMO Capital performed an analysis on the growth of user-generated content (UGC) video game developers such as Fortnite. As a result, the analysts stated that the economics they (competitors like Fortnite) offer to incentivize creators to build on their platforms trail Roblox’s.
The analysts highlighted Roblox’s recent increase in developer revenue share, where it cautioned that it was likely a one-time event rather than a recurring annual trend. BMO added that competitive pressures could force Roblox to further shift economics toward developers over time, adding risk pressure to its long-term margin profile.
Roblox Corporation (NYSE:RBLX) is an interactive entertainment company. It operates an immersive platform that enables users to create, share, and experience 3D virtual worlds and games. Its ecosystem includes Roblox Client, Roblox Studio, and Roblox Cloud. The company generates revenue primarily through the sale of Robux, its virtual currency used for in-game purchases and premium content.
5. Sprouts Farmers Market, Inc. (NASDAQ:SFM)
Renaissance Technologies Stake: $663,802,796
Stock Performance (end Q2-October 9): -36.58%
Number of Hedge Fund Holders: 54
Sprouts Farmers Market, Inc. (NASDAQ:SFM) is one of the best stocks to buy according to Jim Simons’ Renaissance Technologies. On October 13, RBC Capital upgraded Sprouts Farmers Market (NASDAQ:SFM) to Outperform from Sector Perform, lowering its price target to $148 from $176.
The move follows a 42% drop in SFM shares since June, significantly underperforming both grocery peers and the broader market. RBC believes the current valuation already reflects expected sales slowdowns and considers concerns over recent promotions to be overstated.
Looking ahead, RBC projects strong medium-term growth for Sprouts, including low double-digit revenue increases, 4–5% comparable store sales growth, and 8–10% unit expansion. With anticipated EPS growth in the low to mid-teens, the revised $148 target suggests a 43% upside from current levels.
Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a specialty grocery retailer. It operates more than 430 stores across 24 US states. The retailer offers fresh produce, natural and organic foods, vitamins, bulk items, and lifestyle-friendly products such as plant-based, gluten-free, and keto-friendly options.
4. Spotify Technology SA (NYSE:SPOT)
Renaissance Technologies Stake: $676,737,376
Stock Performance (end Q2-October 9): -12.02%
Number of Hedge Fund Holders: 111
Spotify Technology SA (NYSE:SPOT) is one of the best stocks to buy according to Jim Simons’ Renaissance Technologies. On October 8, KeyBanc reaffirmed its Overweight rating and $830 price target for Spotify (NYSE:SPOT).
The firm believes market consensus is underestimating Spotify’s medium-term growth and margin potential. Ahead of Q3 earnings on November 4, KeyBanc expects signs of stronger engagement, improving gross margins from the current 31.7%, and monetization strategies beginning to take effect by late 2025 and early 2026.
Looking forward, KeyBanc forecasts high-teens revenue growth for Spotify in 2026 and 2027. While it made slight downward revisions to revenue and profit estimates due to ARPU phasing, its operating profit projections of €3.14 billion for 2026 and €4.25 billion for 2027 remain 7% and 9% above consensus, respectively.
Spotify Technology SA (NYSE:SPOT) is a global audio streaming company. The platform serves more than 600 million monthly active users worldwide, making it the largest music streaming service by market share. Spotify generates revenue from subscriptions, advertising, and partnerships.
3. Netflix, Inc. (NASDAQ:NFLX)
Renaissance Technologies Stake: $721,161,111
Stock Performance (end Q2-October 9): -7.99%
Number of Hedge Fund Holders: 133
Netflix, Inc. (NASDAQ:NFLX) is one of the best stocks to buy according to Jim Simons’ Renaissance Technologies. On October 7, Seaport Global Securities upgraded Netflix, Inc. (NASDAQ:NFLX)’s stock rating from Neutral to Buy and set a new price target of $1,385. The firm based the upgrade primarily on the huge potential for advertising revenue growth.
Seaport Global projects Netflix’s ad revenue to double in 2025 to about $3.1 billion and then continue growing at an annual rate of 48% through 2030. This means it could touch $16 billion in half a decade’s time. The firm incorporated increased operating leverage and advertising revenue growth into its financial projections.
The analysts view Netflix as the dominant player in the streaming industry. This dominance is made possible by “strong engagement” on the platform, which is in turn supported by “professional, curated content”. This content strategy, stated Seaport Global, is a key driver behind Netflix’s market share gains against traditional linear television.
Netflix, Inc. (NASDAQ:NFLX) is a global entertainment company. It offers subscription-based streaming services across more than 190 countries. The company produces and distributes content across several categories, including television series, documentaries, original programming, and films. It also operates an ad-supported tier geared at expanding user base and revenue streams.
2. Robinhood Markets, Inc. (NASDAQ:HOOD)
Renaissance Technologies Stake: $1,078,208,811
Stock Performance (end Q2-October 9): 65.21%
Number of Hedge Fund Holders: 85
Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the best stocks to buy according to Jim Simons’ Renaissance Technologies. On September 30, Needham raised its price target on Robinhood Markets, Inc. (NASDAQ:HOOD) to $145 from $120 and maintained a Buy rating on the stock. The analysts cited Robinhood’s September month-to-date metrics, which showed “solid growth across the platform.” The firm increased estimates across nearly every segment for Q3 2025.
Needham described Robinhood as the financial services platform that is furthest along in becoming a ‘one-stop shop’ for users. As such, the firm raised its 2025 and 2026 forecasts for equities and options volumes, as well as take rates. Prediction Markets revenue was modestly lowered for Q3 2025 but raised for 2026 as expansion is expected in that segment. The analyst lowered their cryptocurrency contribution projections to revenue and EBITDA for 2025 and 2026, saying: “Recent crypto activity has taken a breather.”
Needham also expressed continued confidence in Robinhood’s business model. The analysts stated that Robinhood’s product expansion is satisfactory and that they see additional opportunities in banking, futures, tokenized real-world assets, and prediction markets.
Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial services platform. It offers commission-free trading of stocks, ETFs, options, and cryptocurrencies through its mobile-first brokerage app. The company also provides cash management and retirement account services.
1. Palantir Technologies, Inc. (NASDAQ:PLTR)
Renaissance Technologies Stake: $1,840,598,254
Stock Performance (end Q2-October 9): 38.06%
Number of Hedge Fund Holders: 78
Palantir Technologies, Inc. (NASDAQ:PLTR) is one of the best stocks to buy according to Jim Simons’ Renaissance Technologies. On October 6, OneMedNet Corporation announced a multi-year partnership with Palantir Technologies (NASDAQ;PLTR) to transform healthcare AI and Real-World Data (RWD) analytics.
Palantir’s Artificial Intelligence Platform will power OneMedNet’s iRWD network, enabling life sciences and research organizations to access anonymized, regulatory-grade clinical data and advanced analytics. This collaboration aims to unlock the $868 billion AI-driven healthcare market by 2030 through scalable, secure, and compliant data solutions.
The integration gives OneMedNet access to over 5 billion claims and 131 million clinical exams across 1,750+ provider sites. Palantir’s platform enhances data discovery, cohort customization, and productivity through conversational AI and automation. Together, the companies will streamline clinical research, accelerate diagnostics and therapeutics, and expand global market reach, all while ensuring compliance with healthcare standards and data privacy regulations.
Palantir Technologies, Inc. (NASDAQ:PLTR) is a software and data analytics company. It develops platforms that help governments, corporations, and institutions integrate, manage, and analyze large datasets to drive decision-making. Its core products include Palantir Gotham, Palantir Foundry, Palantir Apollo, and the Artificial Intelligence Platform (AIP).
While we acknowledge the potential of Palantir Technologies, Inc. (NASDAQ:PLTR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLTR and that has 100x upside potential, check out our report about this cheapest AI stock.
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