5 Best Growth Stocks to Buy According to Hedge Funds

In this article, we discuss the 5 best growth stocks to buy according to hedge funds. If you want to read about some more growth stocks, go directly to 14 Best Growth Stocks to Buy According to Hedge Funds.

5. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 128     

Apple Inc. (NASDAQ:AAPL) designs, manufactures and markets smartphones, personal computers, tablets, wearables, and accessories. It is one of the top growth stocks to invest in. On October 20, Apple revealed that it will add Fitness+ service in 21 countries to its new iOS 16.1 for iPhone users without having an Apple Watch which will be launched soon. On October 18, Apple announced an update of the Apple TV 4K model with the A15 Bionic chip.

On October 17, Morgan Stanley analyst Erik Woodring maintained an Overweight rating on Apple Inc. (NASDAQ:AAPL) stock and lowered the price target to $177 from $180, noting that consumer and enterprise checks worsened in Q3 for the firm.

At the end of the second quarter of 2022, 128 hedge funds in the database of Insider Monkey held stakes worth $143 billion in Apple Inc. (NASDAQ:AAPL), compared to 131 in the previous quarter worth $182 billion.

In its Q2 2022 investor letter, Alger Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:

“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications. computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. The engagement is fostering the growing purchase of high-margin services like music, apps, and apple pay. Apple’s shares detracted from performance as management lowered its guidance for the second quarter due to headwinds from the war in Ukraine, adverse foreign currency shifts, and dampened consumer demand associated with the coronavirus in China. Additionally, many investors were concerned that lockdowns implemented to curtail the spread of COVID-19 would impact the production of apple products, however, the manufacturing facilities have resumed activity.”

4. Uber Technologies, Inc. (NYSE:UBER)

Number of Hedge Fund Holders: 129  

Uber Technologies, Inc. (NYSE:UBER) develops and operates proprietary technology applications worldwide. It is one of the best growth stocks to invest in. On October 19, Uber Technologies revealed that it has launched Journey Ads, a dedicated advertising division led by industry veteran Mark Grether to drive its ad business growth. On October 18, Uber Eats said it was now delivering cannabis in Toronto, Ontario.

On August 3, MKM Partners analyst Rohit Kulkarni maintained a Buy rating on Uber Technologies, Inc. (NYSE:UBER) stock and raised the price target to $40 from $32. 

At the end of the second quarter of 2022, 129 hedge funds in the database of Insider Monkey held stakes worth $5.3 billion in Uber Technologies, Inc. (NYSE:UBER), compared to 144 in the preceding quarter worth $8.5 billion. 

In its Q2 2022 investor letter, RiverPark Funds, an asset management firm, highlighted a few stocks and Uber Technologies, Inc. (NYSE:UBER) was one of them. Here is what the fund said:

“Uber Technologies, Inc. (NYSE:UBER) is a global technology platform that enables the transportation of people and products across cities and countries. The company’s three main business lines are 1) Mobility where the company is the number one or two player in the app-based personal transportation market in 10,000+ cities globally, 2) Delivery- (Uber Eats in the US) home delivery of prepared meals, grocery, liquor, and increasingly general retail products in seven of the top ten GDP markets globally, and 3) Freight- the largest global marketplace for end-to-end freight solutions including one million digitally connected truck drivers. In the company’s most recent quarter, it grew gross bookings by 35% year over year, consummated transactions with 115 million unique customers, completed 1.7 billion trips a month, and all three divisions were adjusted EBITDA positive (…read more)

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 153     

Alphabet Inc. (NASDAQ:GOOG) provides various products and platforms such as google services, google cloud etc. It is one of the premier growth stocks to invest in. On October 20, Google, a search engine and subsidiary of Alphabet, said that it has opened a local cloud region in Israel with the initiative to increase growth and jobs in the country. On October 20, Wing, a subsidiary of Alphabet, confirmed their location, Lusk, for a small-scale demonstration of a drone delivery operation in Ireland.

On October 21, Deutsche Bank analyst Benjamin Black maintained a Buy rating on Alphabet Inc. (NASDAQ:GOOG) stock and lowered the price target to $130 from $135, noting that the company has a fairly high bar to clear for a post-print rally. 

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 3.2 million shares worth more than $6.9 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).”

2. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 184    

Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide. It is one of the elite growth stocks to invest in. On October 20, the independent oversight board of Meta Platforms revealed that it would apply warning screens by marking content as distributing or sensitive to photos and videos. On October 13, Meta founder Mark Zuckerberg said that a new device under Project Cambria named Quest Pro will be ready to ship in late October.

On October 21, JPMorgan analyst Doug Anmuth maintained a Neutral rating on Meta Platforms, Inc. (NASDAQ:META) stock and lowered the price target to $180 from $200, noting that sentiment remains cautious across the internet sector with secular growth slowing. 

At the end of the second quarter of 2022, 184 hedge funds in the database of Insider Monkey held stakes worth $18.2 billion in Meta Platforms, Inc. (NASDAQ:META), compared to 200 in the preceding quarter worth $19.3 billion.

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:META) was one of them. Here is what the fund said:

“Shares of Meta Platforms, Inc. (NASDAQ:META), the owner of Facebook, the world’s largest social network, fell 28.4% during the second quarter due to quarterly results that missed consensus estimates, driven by the impact of Apple’s new privacy changes in its iOS operating system. These changes have made it harder for Facebook to measure the effectiveness of its advertising across its mobile apps.

In the longer term, we expect Facebook to continue utilizing its leadership in mobile to provide global advertisers targeted marketing capabilities at scale, with substantial monetization optionality ahead in newer areas such as Reels (Meta’s competing solution to TikTok) and e-commerce.”

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

Number of Hedge Fund Holders: 252    

Amazon.com, Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products and subscriptions in North America and internationally. It is one of the major growth stocks to invest in. On October 20, Amazon said that its distribution center in Johnston will open a few months later than the expected date in 2023. The new distribution center is 4 million square feet and worth $290 million. On October 21, Amazon’s new fulfillment center opened in Canada. It is the most technologically advanced fulfillment center of Amazon and the largest building in Ottawa.

On October 21, JPMorgan analyst Doug Anmuth maintained an Overweight rating on Amazon.com, Inc. (NASDAQ:AMZN) stock and lowered the price target to $175 from $185, noting that competition increasing in the internet sector had led to decreasing forward estimates for the firm.

At the end of the second quarter of 2022, 252 hedge funds in the database of Insider Monkey held stakes worth $30 billion in Amazon.com, Inc. (NASDAQ:AMZN), compared to 271 in the preceding quarter worth $48 billion.

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest retailer and cloud services, provider. Shares of Amazon declined 35% in the quarter due to weaker-than-expected profits resulting from the overcapacity of resources coming out of COVID. We expect Amazon to grow its retail capacity in the quarters to come, which would enable it to improve profitability accordingly. Amazon remains one of our largest holdings due to its durable competitive advantages with a leading position in multiple trillion-dollar markets with a long runway for growth (…read more)

You can also take a peek at 10 Best Bargain Stocks To Buy Right Now and 10 Best Infrastructure Stocks To Buy Now.

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