In this article, we discuss the 5 best big name stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Big Name Stocks to Buy Now.
5. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 155
Alphabet Inc. (NASDAQ:GOOG) provides various products and platforms such as Google Services, Google Cloud, and YouTube. Recent reports suggest that Google has decided to combine Google Brain and DeepMind, two AI startups it controls, to streamline AI-related business efforts. This consolidation aims to foster collaboration and maximize the potential of their combined expertise in artificial intelligence.
On May 11, Bank of America analyst Justin Post maintained a Buy rating on Alphabet Inc. (NASDAQ:GOOG) stock with a price target of $128, appreciating the AI integrations of the firm into new and existing products.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel investment Group is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG) with 24 million shares worth more than $2.5 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“Alphabet Inc. (NASDAQ:GOOG) is the parent company of Google, the world’s largest search and online advertising company. Shares of Alphabet declined 21.6% in the quarter due to concerns about slower global growth impacting the company’s core advertising business. We retain conviction in Alphabet’s merits as it continues to benefit from growth in mobile and online video advertising, which accrues to its core assets of search, YouTube, and the Google ad network. We are further encouraged by Alphabet’s investments in Cloud, AI, and Autonomous Driving (through its Waymo subsidiary).”
4. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 173
Visa Inc. (NYSE:V) operates as a payments technology company worldwide. On May 26, the company announced that it had joined a pilot program for Brazil’s central bank digital currency (CBDC). The initiative aims to explore the potential benefits and challenges of issuing a digital currency in Brazil. The collaboration signifies the growing interest of major companies in CBDCs and their potential impact on the global financial landscape. Tech giant Microsoft is also part of this pilot program.
On May 1, investment advisory Barclays maintained an Overweight rating on Visa Inc. (NYSE:V) stock and raised the price target to $272 from $270. Analyst Ramsey El-Assal issued the ratings update.
At the end of the first quarter of 2023, 173 hedge funds in the database of Insider Monkey held stakes worth $26 billion in Visa Inc. (NYSE:V), compared to 177 in the preceding quarter worth $26.4 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Visa Inc. (NYSE:V) was one of them. Here is what the fund said:
“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Visa, Inc. (NYSE:V). These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 220
Meta Platforms, Inc. (NASDAQ:META) is a tech firm that owns and runs social media platforms. The company has fast-tracked plans for the launch of a new Meta VR headset, which could potentially compete with Apple’s latest VR release. The Meta VR headset aims to offer a fully immersive virtual reality experience and incorporates advanced features such as eye-tracking and hand gesture recognition. With this development, the competition in the VR market is set to intensify as both companies strive to dominate the growing industry.
On May 15, investment advisory Loop Capital upgraded Meta Platforms, Inc. (NASDAQ:META) stock to Buy from Hold and raised the price target to $320 from $220.
At the end of the first quarter of 2023, 220 hedge funds in the database of Insider Monkey held stakes worth $25 billion in Meta Platforms, Inc. (NASDAQ:META), compared to 194 in the preceding quarter worth $15 billion.
In its Q1 2023 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:META) was one of them. Here is what the fund said:
“Our top contributors in Q1 were Meta Platforms, Inc. (NASDAQ:META), Warner Bros Discovery (WBD) and FedEx. Following sharp declines in 2022, shares of Meta Platforms have more than doubled since their early November 2022 lows. Last year’s drawdown created a highly favorable risk-reward, which we took advantage of by adding to our position. Management has wisely, in our view, recalibrated its spending plans to focus on profitability amid a weaker advertising environment, increased TikTok competition and Apple’s privacy changes. While investors got ahead of themselves back in 2021, extrapolating pandemic growth rates into the future, Meta is still a highly successful enterprise generating over $120 billion of revenue annually on a run-rate basis and has more than $40 billion in cash on its balance sheet to help it navigate its future course. Recent usage and engagement trends for Facebook and Instagram have been positive, and Reels—Meta’s answer to TikTok—is gaining traction.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 243
Amazon.com, Inc. (NASDAQ:AMZN) is a diversified technology firm with core interests in ecommerce. In mid-May, the company announced that it was planning to invest about $12.7 billion in cloud infrastructure in India. Per initial estimates, the investment will likely contribute $23.3 billion to the country’s total GDP by 2030 and support 131,000 jobs each year. Since 2016, the company has invested heavily in the South Asian country, and the latest investments bring the total out to $16.4 billion by 2030.
On May 31, Bernstein analyst Mark Shmulik maintained an Outperform rating on Amazon.com, Inc. (NASDAQ:AMZN) stock and raised the price target to $140 from $125, noting that Amazon had an appealing near-term setup and quality and long-term growth.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Citadel Investment Group is a leading shareholder in Amazon.com, Inc. (NASDAQ:AMZN) with 35 million shares worth more than $3.7 billion.
In its Q1 2023 investor letter, Arch Capital Management, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said:
“Replacing our Wix investment is Amazon.com, Inc. (NASDAQ:AMZN), a company we are sure you have heard of before. We believe the company’s long-term growth runway, profit potential, and competitive advantages were being vastly underrated in early January when its market cap was well below $1 trillion. We think early January was one of those rare times you could buy a special business like Amazon at a discounted valuation. Our hope is that – if we are right about its competitive advantages in retail and cloud computing – our Amazon stake will end up being a permanent holding in the limited partnership.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 289
Microsoft Corporation (NASDAQ:MSFT) is a diversified technology company with core interests in the software business. In early June, the company announced that it would be partnering with CoreWeave, a leading cloud infrastructure and GPU provider. The collaboration aims to enhance Microsoft’s artificial intelligence capabilities by leveraging CoreWeave’s powerful GPU resources. CoreWeave is owned by chip giant NVIDIA.
On June 2, Evercore ISI analyst Kirk Materne maintained an Outperform rating on Microsoft Corporation (NASDAQ:MSFT) stock and raised the price target to $400 from $337, noting that Microsoft was in a unique position to monetize the platform shift to AI over the next few years.
At the end of the first quarter of 2023, 289 hedge funds in the database of Insider Monkey held stakes worth $57 billion in Microsoft Corporation (NASDAQ:MSFT), up from 259 in the preceding quarter worth $58 billion.
In its Q1 2023 investor letter, Ariel Investments, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“Enterprise software provider, Microsoft Corporation (NASDAQ:MSFT) also traded higher in the period alongside the investor enthusiasm for Artificial Intelligence. Microsoft is well positioned as this new technology advances given its large investment in Open AI, the parent company of ChatGPT. Looking ahead, we continue to like Microsoft’s solid fundamentals, competitive positioning and long-term business outlook. We anchor on the company driving value creation by capitalizing on a broad and deep set of opportunities, most notably within Azure, its hybrid cloud infrastructure. The platform continues to demonstrate share gains and strong multi-year purchase intent as enterprises transition to cloud based platforms. At current trading levels, we believe Microsoft’s risk/reward is skewed to the upside.”
You can also take a peek at 10 Best ASX Stocks To Buy and 15 Most Creative Companies in the World.
