In this article, we will take a look at the 5 best growth stocks to buy according to George Soros. To see more such companies, go directly to 13 Best Growth Stocks To Buy According To George Soros.
5. Amazon.com, Inc. (NASDAQ:AMZN)
Stake Value: $97,127,434
Soros Fund Management owns a $97 million stake in Amazon.com, Inc. (NASDAQ:AMZN) as of the end of the third quarter of 2023.
Amazon.com, Inc. (NASDAQ:AMZN) recently entered into a deal with Meta Platforms after which customers will be able to shop via Amazon ads within the Facebook app.
“For Meta, we believe the partnership can deliver closed loop attribution of ads as Social increasingly becomes a larger product discovery channel,” Citi analysts led by Ronald Josey said in a note.
4. Novo Nordisk A/S (NYSE:NVO)
Stake Value: $138.7M
Denmark-headquartered Novo Nordisk A/S (NYSE:NVO) ranks 4th in our list of the best growth stocks to buy according to George Soros’ hedge fund. Earlier this month Novo Nordisk A/S (NYSE:NVO) posted third quarter results. Revenue in the quarter increased by about 29% year over year to DKK 58.73 billion.
In Q3 earnings call Novo Nordisk A/S (NYSE:NVO) talked about Ozempic, its popular Diabetes drug. Novo Nordisk A/S (NYSE:NVO) said:
“We now expect the sales growth to be between 32% and 38% at constant exchange rates. The increased sales outlook is primarily reflecting higher full year expectations to Ozempic volumes sold in the US and gross to net adjustments for Ozempic and Wegovy in the US. The guidance reflects expectations for sales growth in both North America operations and international operations. The guidance is mainly driven by volume growth of GLP-1 based treatments for diabetes and obesity care.
This is partially countered by declining sales in rare disease due to a temporary reduction in manufacturing output. The guidance reflects the level of volume growth of GLP-1 based treatments. The inherent uncertainty of the pace of Ozempic — obesity care market expansion following the re-launch of Wegovy in the US and a limited rollout in international operations are also included in the guidance range. Finally, the sales outlook reflects expected continued periodic supply constraints and related drug shortage notifications across a number of products and geographies. Novo Nordisk is investing in internal and external capacity to increase supply both short and long-term. While supply capacity for Wegovy is gradually being expanded, the lower dose strength in the US will remain restricted to safeguard continuity of care.”
Read the full earnings call transcript here.
During the third quarter, George Soros’ fund bought a new position in the company, amassing 1,525,830 shares of Novo Nordisk A/S (NYSE:NVO) worth about $139 million.
3. DigitalOcean Holdings, Inc. (NYSE:DOCN)
Stake Value: $15M
Cloud services provider DigitalOcean Holdings, Inc. (NYSE:DOCN) ranks 3rd in our list of the best growth stocks to buy according to billionaire George Soros’ hedge fund. The hedge fund bought a new stake in DigitalOcean Holdings, Inc. (NYSE:DOCN) in the third quarter, worth about $15 million.
In the third quarter DigitalOcean Holdings, Inc. (NYSE:DOCN)’s revenue jumped about 16.4% year over year to $177.06 million, beating estimates by $3.7 million.
As of the end of the third quarter of 2023, 17 hedge funds out of the 910 hedge funds tracked by Insider Monkey reported owning stakes in DigitalOcean Holdings, Inc. (NYSE:DOCN). The biggest stakeholder of DigitalOcean Holdings, Inc. (NYSE:DOCN) during this period was Paul Marshall and Ian Wace’s Marshall Wace LLP which had a $19 million stake in the company.
2. Alphabet Inc. (NASDAQ:GOOG)
Stake Value: $183,737,909
Goldman Sachs recently rolled out a list of stocks it believes are quality names to buy for 2024. Goldman Sachs believes these companies have strong “balance sheet strength, stable sales and earnings growth, high return on equity, and low historical drawdown risk.” Alphabet Inc. (NASDAQ:GOOG) was one of the top-quality stocks recommended by Goldman Sachs as part of this list.
George Soros’ hedge fund owns a $184 million stake in Alphabet Inc. (NASDAQ:GOOG). As of the end of the second quarter of 2023, 204 hedge funds reported owning stakes in Alphabet Inc. (NASDAQ:GOOG). The biggest stakeholder of Alphabet Inc. (NASDAQ:GOOG) was Natixis Global Asset Management’s Harris Associates which owns a $3.2 billion stake in the company.
RiverPark Advisors made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2023 investor letter:
“Alphabet Inc. (NASDAQ:GOOG): Internet services leader Alphabet was a top contributor in the third quarter following a strong 2Q23 earnings report in July. All divisions performed better than investors’ expectations, including stabilization of Search revenue growth, a return to growth for YouTube, and expanded profitability for Google Cloud. Management highlighted AI tools (according to the company, 80% of advertisers use at least one of the company’s advertising AI tools) as well as a re-acceleration in advertising growth. In addition, YouTube benefited from mass user adoption of YouTube Shorts (2+ billion monthly users) and growing advertiser adoption of Connected TV offerings. Google Cloud continued its strong growth and market share gains (28% y/y revenue growth) and even more impressive operating margin gains (+14 points y/y).
With its high-margin business model (25% operating margin last quarter), continued strength across its core Search and YouTube franchises, and emerging strength and profitability in its still relatively small Cloud business, we continue to view Alphabet as among the best-positioned secular growth franchises in the market. Additionally, GOOG shares trade at a compelling 20x the Street’s 2024 EPS estimate, a discount to the Russell 1000 Growth Index.”
1. Activision Blizzard Inc. (NASDAQ:ATVI)
Stake Value: $280,890,094
George Soros’ hedge fund bought 3 million shares of Activision Blizzard Inc. (NASDAQ:ATVI) during the September quarter. Investors are watching the company as Microsoft Corporation (NASDAQ:MSFT)’s $69 billion deal to acquire the company inches towards the finish line.
A total of 134 hedge funds out of the 910 funds tracked by Insider Monkey reported owning stakes in Activision Blizzard Inc. (NASDAQ:ATVI) as of the end of the second quarter of 2023.
Aristotle Capital Value Equity Strategy made the following comment about Activision Blizzard, Inc. (NASDAQ:ATVI) in its Q3 2023 investor letter:
“We first purchased Activision Blizzard, Inc. (NASDAQ:ATVI), one of the largest video game companies in the world, during the second quarter of 2023. We have long appreciated the critical role Activision Blizzard’s gaming franchises play for PlayStation, Xbox and the broader gaming industry. Moreover, we believe the company is on the path toward increasing its revenue from new products that rely on in‐game transactions and advertising, as well as through further leveraging its intellectual property from consoles and PCs into mobile games. At the time of purchase, there was heightened uncertainty regarding whether regulators would approve the pending acquisition of the company by Microsoft, a current Value Equity holding. This, we believe, provided an opportunity for us to own Activision Blizzard at an attractive discount to our estimates of intrinsic value should the company remain independent. Conversely, if the transaction commenced and Activision Blizzard was indeed acquired, we would still benefit through our investment in Microsoft. As such, rather than attempting to predict regulatory approval of the transaction, we instead saw the company as an optimal investment. With the uncertainties regarding regulatory approval nearly disappearing, we decided to exit our investment.”
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