In this piece we will look at the 5 Best Penny Stocks to Invest In According to Billionaires. Please visit 12 Best Penny Stocks to Invest In According to Billionaires. if you’d like to see an extended list and how we came up with the list of Best Penny Stocks to Invest In According to Billionaires..
5. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
Number of Billionaire Investors: 14
Total Value of Holdings: $88.2 billion
Number of Hedge Fund Holders: 25
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is one of the Best Penny Stocks to Invest In According to Billionaires. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a biotechnology company that is building an AI-native discovery platform to industrialize drug discovery. Although still in the clinical stage, the company generates much of its revenue from key partnerships and collaborations with companies such as Takeda Pharmaceutical Co, Roche, Genentech, and more.
The stock gained roughly 19% over the past month. The gains were driven by Cathie Wood’s ARK Investment buying 260,000 shares of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) on June 24.
In addition, the company also highlighted clinical progress in its fiscal Q1 2026 earnings, released on May 6. The company noted that REC-1245, which is an RBM39-targeting cancer drug, showed good early safety and predictable dosing in its first 16 patients. Moreover, the REC-4881, which is aimed at the genetic disease FAP, also posted strong Phase 2 results and prompted FDA talks towards approval; updates for this candidate are expected in late 2026.
Financially, the company reported $6.5 million in revenue for the quarter, which was down from $14.7 million a year ago, due to a phase of the Roche partnership that was completed last year, so there’s less revenue to recognize now. Notably, Recursion was able to reduce its net loss to $117.5 million. This is roughly half of last year’s $202.5 million.
The Street remains bullish on the stock, with analysts expecting more than 76% upside from the current level.
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a biotechnology company focused on using AI, automation, and data science to industrialize drug discovery.
4. Opendoor Technologies Inc. (NASDAQ:OPEN)
Number of Billionaire Investors: 15
Total Value of Holdings: $248.6 billion
Number of Hedge Fund Holders: 39
Opendoor Technologies Inc. (NASDAQ:OPEN) is one of the Best Penny Stocks to Invest In According to Billionaires. Opendoor Technologies Inc. (NASDAQ:OPEN) has gained more than 18% over the past month, driven by strong housing data and improved unit economics. As of Q1 2026, 15 billionaire investors held the stock.
The gains were also boosted by the company’s inclusion in the Russell 3000 index on May 27. The inclusion came into effect at market close on June 26, 2026. Moreover, Opendoor also posted strong results for its fiscal Q1 2026 earnings, released on May 8. During the quarter, the company posted $720 million in revenue and topped the consensus of $667.16 million. The EPS of negative $0.05 also came in ahead of the expected negative $0.06.
Management noted signing its largest volume of home acquisition contracts since 2022. This was roughly double the previous quarter. Moreover, the company also highlighted that resale margins have improved every month since September 2025, with March 2026 posting the best contribution margin in nearly two years. Inventory health also improved sharply, and aged inventory dropped from 51% in Q3 2025 to just 10%.
Following a quarter of record acquisition contracts, management expects to reach Adjusted EBITDA breakeven in Q2 2026 and aims for positive adjusted net income on a 12-month basis by year-end.
Opendoor Technologies Inc. (NASDAQ:OPEN) operates a digital platform that makes buying and selling homes easier and more cost-effective than traditional processes.
3. UWM Holdings Corporation (NYSE:UWMC)
Number of Billionaire Investors: 16
Total Value of Holdings: $151.9 billion
Number of Hedge Fund Holders: 46
UWM Holdings Corporation (NYSE:UWMC) is one of the Best Penny Stocks to Invest In According to Billionaires. The stock was held by 16 billionaire investors as of Q1 2026, with total holdings around $151.9 billion.
Recently, on June 25, UWM Holdings Corporation (NYSE:UWMC) was upgraded to Outperform from Market Perform at Keefe Bruyette. Despite the upgrade, the firm lowered the price target from $4.5 to $3.75. The firm noted that they expect the mortgage rates to stay elevated around the 6.25% to 6.5% range through 2028. As a result, the firm lowered the price targets across title insurers and mortgage originators broadly.
Despite the cautious outlook, the firm believes that UWM Holdings is attractively priced at current valuations; hence, it upgraded the stock to Outperform. Moreover, the firm also expects the company to cut its dividend. While dividend cuts are often seen negatively, in this case, the analyst views it as constructive. He elaborated that reducing the payout would let the company retain more capital, build equity, and strengthen its balance sheet. The firm sees the likely dividend cut as a near-term positive trigger that could support the stock, even as the broader mortgage industry outlook stays challenging.
UWM Holdings Corporation (NYSE:UWMC) is a company specializing in origination, sale, and servicing residential mortgage lending. Founded in 1986, the company originates primarily from conforming and government loans.
2. Snap Inc. (NYSE:SNAP)
Number of Billionaire Investors: 16
Total Value of Holdings: $188.6 billion
Number of Hedge Fund Holders: 40
Snap Inc. (NYSE:SNAP) is one of the Best Penny Stocks to invest in, according to Billionaires. Last month, on June 16, Snap Inc. (NYSE:SNAP) released SPECS, which are the company’s augmented reality glasses. The company priced the glasses at $2,195 for pre-order and noted that shipping will start in the US, UK, and France in fall 2026.
CEO Evan Spiegel noted SPECS to be a shift beyond smartphones and highlighted that the glasses aim to solve a tradeoff other devices face, which is that AI glasses are wearable but limited, while AR headsets are powerful but bulky and isolating. SPECS claims to offer both capability and comfort in a standalone device with no external puck.
Following the announcement, Benchmark reiterated Snap Inc. (NYSE:SNAP) with a Hold rating, without disclosing any price targets. Analyst Mark Zgutowicz noted the $2,195 price came in below Benchmark’s prior $2,500 estimate. Moreover, he noted that the company has not yet disclosed key performance details including resolution, pixels per degree, brightness, and refresh rate. This makes it hard to fully evaluate display quality versus competitors.
Snap Inc. (NYSE:SNAP) is an American technology and social media company that develops and maintains technological products and services. The company’s core products include Snapchat, Lens Studio, and Spectacles.
1. Kosmos Energy Ltd. (NYSE:KOS)
Number of Billionaire Investors: 18
Total Value of Holdings: $197.0 billion
Number of Hedge Fund Holders: 43
Kosmos Energy Ltd. (NYSE:KOS) is one of the Best Penny Stocks to Invest In According to Billionaires. Recently, on June 23, Bank of America Securities initiated a Sell rating on Kosmos Energy Ltd. (NYSE:KOS) with a price target of $1.46. Overall, the Street remains bullish on the stock, with analysts’ 12-month price target suggesting more than 60% upside from the current level.
The analyst who initiated a Sell rating on the stock noted that the stock has gained 129% on a year-to-date basis, making it one of the best-performing stocks in the sector. However, the analyst believes that the rally has gone too far and that the stock’s fundamentals no longer support the inflated value.
They highlighted that Kosmos carries much higher leverage than its industry peers and noted that scheduled debt repayments are expected to eat up most of the company’s free cash flow in the coming years. This is expected to leave little for dividends or buybacks.
The analyst is also cautious about long-term output and sees downside risk to production estimates compared to what the market currently expects. This concern is particularly regarding the Greater Tortue Ahmeyim Phase 2 project and the company’s heavy dependence on operations in Ghana.
Kosmos Energy Ltd. (NYSE:KOS), an independent oil and gas company, focuses on offshore exploration, development, and production.
While we acknowledge the potential of KOS 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 KOS and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Good Stocks to Invest in Now and 10 Most Undervalued US Stocks According to Hedge Funds.
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