5 Best Growth Stocks To Buy According To George Soros

In this article, we will look at the 5 best growth stocks to buy according to George Soros. If you want to read about George Soros’ investment philosophy and explore similar stocks, you can go to 12 Best Growth Stocks To Buy According To George Soros.

5. indie Semiconductor, Inc. (NASDAQ:INDI)

Soros Fund Management’s Stake Value: $66,532,000 

Percentage of Soros Fund Management’s 13F Portfolio: 1.13%

Number of Hedge Fund Holders: 18

indie Semiconductor, Inc. (NASDAQ:INDI) is a leading provider of automotive semiconductors and software solutions for advanced driver assistance systems, connected cars, user experience, and electrification applications. The stock is one of the top growth stocks on George Soros’ 13F portfolio. As of September 30, Soros Fund Management has a position worth $66.5 million in the company and the investment covers 1.13% of the fund’s 13F portfolio.

On November 10, indie Semiconductor, Inc. (NASDAQ:INDI) posted earnings for the third quarter of fiscal 2022 in which the company beat EPS estimates by $0.01. The company generated a revenue of $30.02 million, up 146.90% year over year and ahead of Wall Street consensus by $32,600. On November 22, Benchmark analyst Cody Acree maintained a Buy rating and his $17 price target on indie Semiconductor, Inc. (NASDAQ:INDI).

At the close of Q3 2022, indie Semiconductor, Inc. (NASDAQ:INDI) was a part of 18 investors’ portfolios that held collective stakes of $115.08 million in the company. This is compared to 15 positions in the previous quarter with stakes worth $65.3 million. The hedge fund sentiment for the stock is positive.

Here is what investment management company, Baron Funds, had to say about indie Semiconductor, Inc. (NASDAQ:INDI) in its third-quarter 2022 investor letter:

“indie Semiconductor, Inc. (NASDAQ:INDI) is a fabless designer, developer, and marketer of automotive semiconductors for advanced driver assistance systems and connected car, user experience, and electrification applications. We elected to take a tax loss on our prior position and have been rebuilding on recent weakness. We believe that the automotive semiconductor vertical is attractive as silicon content in cars increases over time from improving safety features and autonomous driving, electrification, and premiumization of interior and exterior features. Indie is a small but rapidly growing player in the automotive semiconductor space and has a multi-billion dollar contracted backlog, providing strong visibility to its revenue ramp in the coming years. Since coming public, the company has beaten expectations every quarter and is on track to turn profitable in 2023 and achieve targeted 60% gross and 30% operating margins by 2025. Indie’s management team has previously built a semiconductor company from the ground up, achieving a successful exit, giving us high confidence in their ability to execute their strategic plan with indie as well.”

4. Alphabet Inc. (NASDAQ:GOOG)

Soros Fund Management’s Stake Value: $96,941,000

Percentage of Soros Fund Management’s 13F Portfolio: 1.65%

Number of Hedge Fund Holders: 156

On October 25, Alphabet Inc. (NASDAQ:GOOG) announced earnings for the fiscal third quarter of 2022. The company reported an EPS of $1.06 and generated a revenue of $69.09 billion. This November, Societe Generale analyst Christophe Cherblanc revised his price target on Alphabet Inc. (NASDAQ:GOOG) to $132 from $147 and reiterated a Buy rating on the shares.

Alphabet Inc. (NASDAQ:GOOG) is an innovator, pioneer, and overall tech behemoth, with free cash flows of $62.5 billion. The company is well-positioned to remain at the top of its industry and benefit from secular tailwinds in the artificial intelligence and cloud computing markets. The stock is ranked high among George Soros’ top growth stock picks. As of September 30, Soros Fund Management has a stake worth $96.9 million in Alphabet Inc. (NASDAQ:GOOG).

At the close of Q3 2022, 156 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG) and disclosed positions worth $19.3 billion in the company.

Here is what Mayar Capital had to say about Alphabet Inc. (NASDAQ:GOOG) in its third-quarter 2022 investor letter:

“In early January this year – which admittedly feels like eons ago – US President Joe Biden was pushing Americans to take up the government’s offer of free COVID tests to help tackle the surging omicron variant. How did Biden respond when citizens asked about the availability of these tests?

“Google it!”

This advice, undoubtedly well-meant, was roundly scoffed at by the press, however. It seemed too obvious to be very helpful.

Anyway, the anecdote serves to introduce you to one of our largest holdings, Alphabet; the parent company of Google. Note that first, Alphabet’s original and core product – its search engine – has entered our common vocabulary as a verb. ‘Googling’ something has the same meaning as ‘researching’ or ‘finding an answer to’ something. Second the reason Biden’s advice was met with such opprobrium was because Googling something has become almost second nature to us now.

These two observations reveal a lot about Google’s strength in the search engine market, in which it has a share of over 90 percent. Because internet search is almost the prototypical network, Google has benefitted from – and we think is also protected by – the huge competitive advantage its scale brings – both to those asking the questions and those providing the answers. The Google search platform becomes increasingly useful to anyone seeking information as a greater volume of stuff becomes available. This starts a virtuous cycle that results in a colossal market share for Google itself. In the language of business strategists, Google benefits from vast network effects.

Because Google’s search results are viewed by billions of eyeballs every day, its search page ‘real estate’ is understandably very valuable to those with goods and services to sell. Advertising revenues from this ‘real estate’ as well as that from its other properties such as Mail, Maps, and so on, totaled almost USD 150b in 2021; amounting to almost 58% of the company’s revenues. Ad sales on YouTube, also owned by Alphabet, brought in another USD 28b. With the secular shift of the advertising spend to digital channels – over which Alphabet has a tight grip – we estimate the company has a share of around 40% of the digital advertising market and is probably the most valuable advertising property in the world…” (Click here to see the full text)

3. Salesforce, Inc. (NYSE:CRM)

Soros Fund Management’s Stake Value: $97,463,000

Percentage of Soros Fund Management’s 13F Portfolio: 1.66%

Number of Hedge Fund Holders: 117

Salesforce, Inc. (NYSE:CRM) is a well-established leader in the customer relationship management (CRM) space, with a long history of providing reliable and innovative solutions to customers in a variety of industries. The company’s strong track record of success is evidenced by its impressive customer base, which includes some of the world’s most recognizable companies. As of September 30, Soros Fund Management has a stake worth $97.4 million in the company. The stock is one of the best growth stocks to buy according to billionaire George Soros.

On December 5, Citi analyst Tyler Radke revised his price target on Salesforce, Inc. (NYSE:CRM) to $164 from $170 and reiterated a Neutral rating on the shares. This December, Credit Suisse analyst Phil Winslow updated his price target on Salesforce, Inc. (NYSE:CRM) to $225 from $250 and maintained an Outperform rating on the shares.

At the end of Q3 2022, Salesforce, Inc. (NYSE:CRM) was a part of 117 hedge funds’ portfolios that held collective stakes of $8.21 billion in the company. This is compared to 116 positions in the previous quarter with stakes worth $7.90 billion. The hedge fund sentiment for the stock is positive.

Here is what Aristotle Atlantic Partners, LLC had to say about Salesforce, Inc. (NYSE:CRM) in its third-quarter 2022 investor letter:

“We sold Salesforce, Inc. (NYSE:CRM) to reduce our weighting in the Information Technology sector. Salesforce held their investor day, and the company reiterated their organic Fiscal Year 2026 revenue target of $50 billion. This target remains more back-end loaded based on current slowing macroeconomic conditions and requires new annual contract growth well ahead of what the company has been averaging for the past few years. We are skeptical that the company will be able to achieve this revenue target organically and see Merger & Acquisitions (M&A) being key to achieving the growth. While we believe Salesforce has shown good success in growing its non-CRM clouds, we do see more competitive pressures emerging for the Marketing and Customer Service Clouds, specifically on the pricing side during a global economic slowdown.”

2. Amazon.com, Inc. (NASDAQ:AMZN)

Soros Fund Management’s Stake Value: $223,871,000

Percentage of Soros Fund Management’s 13F Portfolio: 3.82%

Number of Hedge Fund Holders: 269

On October 27, Amazon.com, Inc. (NASDAQ:AMZN) posted strong earnings for the third quarter of fiscal 2022. The company generated a revenue of $127.10 billion, up 14.70% year over year. Amazon.com, Inc. (NASDAQ:AMZN) reported an EPS of $0.28, outperforming consensus by $0.07. The stock is one of George Soros’ top growth stock picks and, as of September 30, Soros Fund Management’s stake in the company is valued at $223.8 million.

On December 1, Cowen analyst John Blackledge raised his price target on Amazon.com, Inc. (NASDAQ:AMZN) to $160 from $150 and maintained an Outperform rating on the shares.

At the close of the third quarter of 2022, 269 hedge funds held stakes in Amazon.com, Inc. (NASDAQ:AMZN). The total value of these stakes amounted to $34.6 billion, up from $30 billion in the previous quarter with 252 positions. The hedge fund sentiment for the stock is positive.

Here is what Alger Capital had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its third-quarter 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is a well-known online retailer and cloud computing leader. The company’s amazon web services business provides utility-scale cloud offerings that facilitate corporate America’s transition to digital systems. Shares outperformed during the quarter as investors were encouraged by strong second-quarter performance despite a challenging macroeconomic environment. Moreover, the company’s retail segment was resilient and avoided discounting inventory like some major retailers did. Revenues for the company’s cloud computing segment, amazon web services (AWS), grew faster than analysts’ estimates during the quarter due to continuing corporate demand for digitization. As a result, management provided better-than-expected forward guidance.”

1. Rivian Automotive, Inc. (NASDAQ:RIVN)

Soros Fund Management’s Stake Value: $538,408,000 

Percentage of Soros Fund Management’s 13F Portfolio: 9.19%

Number of Hedge Fund Holders: 30

Rivian Automotive, Inc. (NASDAQ:RIVN) is on track to become a major player in the electric vehicle (EV) market. The company has the potential to disrupt the EV market with its innovative technology and first-mover advantage. George Soros is betting big on this EV maker. As of September 30, Soros Fund Management has a position worth $538.4 million in the company. The investment covers 9.19% of George Soros’ 13F portfolio.

On November 9, Rivian Automotive, Inc. (NASDAQ:RIVN) posted earnings for the third quarter of fiscal 2022, in which it beat EPS expectations by $0.26. The company generated a revenue of $536 million, up 53,500% year over year. Wall Street is bullish on Rivian Automotive, Inc. (NASDAQ:RIVN). This November, Canaccord analyst George Gianarikas updated his price target on Rivian Automotive, Inc. (NASDAQ:RIVN) to $55 from $61 and reiterated a Buy rating on the shares. On November 10, Deutsche Bank analyst Emmanuel Rosner revised his price target on Rivian Automotive, Inc. (NASDAQ:RIVN) to $43 from $44 and maintained a Buy rating on the shares.

At the end of Q3 2022, Rivian Automotive, Inc. (NASDAQ:RIVN) was spotted on 30 investors’ portfolios that held collective stakes of $1.96 billion in the company. This is compared to 35 positions in the previous quarter with stakes worth $1.59 billion.

Here is what Baron Funds had to say about Rivian Automotive, Inc. (NASDAQ:RIVN) in its third-quarter 2022 investor letter:

“Rivian Automotive, Inc. (NASDAQ:RIVN) designs, manufactures, and sells consumer and commercial electric vehicles (EVs). Shares of Rivian were up 28% in the third quarter driven by second quarter production that beat expectations, a new partnership with Mercedes Benz, and the positive potential impact of the recently announced Inflation Reduction Act on accelerating broader EV adoption. While Rivian continues to be impacted by supply-chain issues that are causing delays in its production ramp, it is addressing the challenges by diversifying its supply chain to alleviate shortages while also consolidating the number of variants in development to reduce cash burn (the company guided that current cash will be enough to support the company’s future platform launch R2 in 2025). The company also recently reported stronger than-expected third quarter production results while reiterating its annual guidance of producing 25,000 units. As semiconductor shortages ease, we believe the company will be able to rapidly ramp its production. While we retain conviction in the shares given the company’s vision, product positioning, relationship with Amazon.com, and strong balance sheet, we have reduced the size of our position.”

You can also take a look at 13 Best Bear Market Stocks To Buy and 10 Stocks Under $50 To Buy.