In this article, we will list the 5 Best Growth Stocks to Buy According to Billionaire Dan Loeb. Please visit 10 Best Growth Stocks to Buy According to Billionaire Dan Loeb if you would like to see the extended list and the methodology behind it.
5. Alphabet Inc. (NASDAQ:GOOGL)
Third Point’s Stake Value: $50,323,000
Number of Hedge Fund Holders: 265
Alphabet Inc. (NASDAQ:GOOGL) is one of the best growth stocks to buy according to billionaire Dan Loeb. On June 2, Alphabet Inc. (NASDAQ:GOOGL) priced and upsized its equity capital raise to $84.75 billion from $80 billion. The raise is now the largest in US corporate history, and Alphabet intends to use the proceedings to fund the buildout of AI infrastructure and global compute capacity.
Dan Loeb of Third Point
Alphabet detailed in a statement that it has structured the raise in three parts. The first is a $30 billion underwritten public offering split between common stock and mandatory convertible preferred shares, and the second is a $10 billion private placement anchored by Warren Buffett’s Berkshire Hathaway. The last part is a $40 billion at-the-market (ATM) program set to begin in Q3 2026.
On the public offering side, Alphabet priced 25.5 million Class A shares at $355.20 each and 25.5 million Class C shares at $351.80 each. It again priced 167.5 million Series A and Series B depositary shares at $50 each. The company upsized the Class A/C stock portion to $18 billion from $15 billion. It also increased the depositary share portion to $16.75 billion from $15 billion. Alphabet expects net proceeds from these two buckets to be approximately $17.8 billion and $16.6 billion, respectively.
Alphabet Inc. (NASDAQ:GOOGL) is a technology holding company. It operates Google Services, which provides search, advertising, and consumer software services, Google Cloud, and Other Bets, which includes businesses in healthcare, autonomous vehicles, and venture capital.
4. Meta Platforms, Inc. (NASDAQ:META)
Third Point’s Stake Value: $51,491,700
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) is one of the best growth stocks to buy according to billionaire Dan Loeb. On June 23, the New York Times reported that the Trump administration has been pressing Meta Platforms, Inc. (NASDAQ:META) to voluntarily submit its AI models for government security reviews. This makes Meta the only major US AI company that has yet to agree to the process, the Times noted.
The Times noted that the review framework itself was formalized on June 2, when President Trump signed an executive order establishing a voluntary system under which AI developers submit their most powerful frontier AI models to the federal government for up to 30 days of evaluation before public release. The Center for AI Standards and Innovation (CAISI) runs the reviews, with input from the NSA, CISA, and NIST. The full review process is expected to be operational by the end of July.
According to the Times report, every other major U.S. AI developer, including Anthropic, Google, OpenAI, Microsoft, and xAI, has already signed on. It added that Meta is the only holdout, yet its founder, Mark Zuckerberg, sits on the administration’s AI advisory committee.
Asked for comment, Francis Brennan, a Meta spokesman, told the Times that the company shares “the administration’s goal of advancing U.S. leadership on robust and secure frontier AI.” He added that the company is “working through the details” and that they “hope to sign the agreement soon.”
Meta Platforms, Inc. (NASDAQ:META) is a technology company. It operates social media platforms including Facebook, Instagram, WhatsApp, and Messenger, and develops virtual and augmented reality hardware through its Reality Labs division.
3. Live Nation Entertainment, Inc. (NYSE:LYV)
Third Point’s Stake Value: $70,917,150
Number of Hedge Fund Holders: 70
Live Nation Entertainment, Inc. (NYSE:LYV) is one of the best growth stocks to buy according to billionaire Dan Loeb. On June 11, home improvement retailer Lowe’s announced a new multi-year partnership with Live Nation Entertainment, Inc. (NYSE:LYV) through which Lowe’s loyalty members will gain exclusive concert perks and experiences at Live Nation amphitheaters across the US, starting this summer.
The perks available to Lowe’s members at Live Nation venues include discounted children’s tickets when paired with an adult lawn ticket purchase. There will also be complimentary lawn chair rentals at select shows for the first 50 eligible members per concert, and year-round sweepstakes for free tickets.
The partnership also makes Lowe’s the first presenting partner for Live Nation’s new pre-show tailgate experience, which it is rolling out at select amphitheaters this summer. Live Nation describes this summer’s tailgate experience as a proof-of-concept of sponsor-activated programming around the hours before a show begins. In other words, the company is looking to convert pre-concert time into a branded fan experience rather than dead time.
The deal adds a major retail brand to Live Nation’s growing network of amphitheater sponsors. It extends its commercial reach into Lowe’s base of over 30 million loyalty members across its MyLowe’s Rewards and MyLowe’s Pro Rewards programs.
Live Nation Entertainment, Inc. (NYSE:LYV) is an entertainment company. It operates in three segments: concerts, ticketing, and sponsorship and advertising, with its Ticketmaster platform providing primary and secondary ticketing services for live events globally.
2. Somnigroup International Inc. (NYSE:SGI)
Third Point’s Stake Value: $167,855,244
Number of Hedge Fund Holders: 63
Somnigroup International Inc. (NYSE:SGI) is one of the best growth stocks to buy according to billionaire Dan Loeb. On June 15, KeyBanc analyst Bradley Thomas reiterated an Overweight rating and a $105 price target on Somnigroup International Inc. (NYSE:SGI). Thomas pointed to fresh regulatory momentum regarding the company’s proposed acquisition of Leggett & Platt and robust early-second-quarter sales trends as tailwinds for the stock.
Regarding the Leggett & Platt acquisition, Somnigroup filed a Form 8-K on June 4 detailing that it had cleared the antitrust hurdle without a federal challenge. The company values the acquisition at $2.5 billion, and, if completed, Leggett & Platt will become a wholly owned subsidiary of Somnigroup. Somnigroup expects the deal to close by the end of this year.
To Thomas, the KeyBanc analyst, this deal matters because Leggett & Platt has historically been one of Somnigroup’s key upstream suppliers. The company provides materials used in mattress manufacturing, and so bringing it in-house would give Somnigroup greater control over its supply chain, noted Thomas. It will also “unlock synergies,” the analyst believes, that could exceed the stated $50 million target.
Thomas also highlighted that Somnigroup is already integrating the Mattress Firm acquisition. Mattress Firm is the largest mattress retail chain in the US, whose acquisition Somnigroup completed on February 5, 2025, for approximately $5.1 billion. As per Thomas, Somnigroup has been making measurable progress on synergy delivery.
Somnigroup International Inc. (NYSE:SGI) is a mattress and bedding products company. It designs, manufactures, and distributes mattresses, adjustable bases, pillows, and other sleep accessories under brands like Serta, Simmons, and Tuft & Needle.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Third Point’s Stake Value: $404,043,800
Number of Hedge Fund Holders: 353
Amazon.com, Inc. (NASDAQ:AMZN) is one of the best growth stocks to buy according to billionaire Dan Loeb. On June 23, Indiana-based utility company NiSource Inc. announced that the Indiana Utility Regulatory Commission (IURC) had approved key agreements that support its previously announced partnership with Amazon.com, Inc. (NASDAQ:AMZN) to power new large-scale data center development in northern Indiana. Amazon views the move as a major regulatory milestone for its infrastructure expansion in the state.
According to NiSource, the IURC’s June 17 approvals covered Amazon’s special electric service contract, the associated power purchase agreement, and the broader settlement agreement between the parties. Thus, the companies have cleared the full legal and regulatory framework needed to get Amazon’s data centers on the grid.
The regulator also approved NiSource’s proposed generation resources to support the project. The resources will provide the additional power capacity needed to meet Amazon’s electricity demand while maintaining grid reliability for existing customers, said NiSource.
This approval follows an earlier expansion of Amazon’s agreement with NiSource, announced on April 16, 2026. In this deal, NiSource expanded its existing agreement with Amazon Data Services, Inc., an Amazon subsidiary, with the aim of accelerating site energization and associated bill credits for residential customers sooner than originally planned. By June 5, NiSource had added another 400 megawatts of capacity to serve Amazon sites.
Amazon.com, Inc. (NASDAQ:AMZN) is a technology and retail company. It operates e-commerce marketplaces across multiple geographies, provides cloud computing services through Amazon Web Services, and offers digital streaming, advertising, and logistics services.
While we acknowledge the potential of AMZN to grow, 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 AMZN and that has 100x upside potential, check out our report about the cheapest AI stock.
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