Investors spent more of 2023 on their toes because of incessant rate hikes and uncertainty about the Federal Reserve’s future moves. But that sentiment shifted overnight when Jerome Powell on December 13 signaled that the Fed might be done with its rate-hike spree and initial discussions on possible rate cuts in 2024 are underway. As a result, markets are euphoric and bears are on run. What caused Federal Reserve to drastically shift its stance and categorically signal a dovish stance would be up for debates in the weeks to come, but for now investors are focusing on 2024 market outlook and estimates as they pile into stocks. Bloomberg’s latest Markets Live Pulse survey said that the S&P 500 would see record highs in 2024, though the survey respondents said the index’s gains would be lower than the 20% jump it saw in 2023.
Over two thirds of the total respondents in the Bloomberg survey said that they don’t expect hard landing next year and expect the Fed’s rate cuts to begin before July 2024.
Aneeka Gupta, director of macroeconomic research at WisdomTree, gave credit to “US exceptionalism” for the bullish outlook and compared the country’s situation to that of China and Europe which were not able to rebound strongly from the crisis.
Bloomberg said 43% respondents in its survey said they see US markets preforming much better than international markets in 2024. About 26% respondents of the survey said they plan to increase their holdings over the next month.
Photo by Ruben Sukatendel on Unsplash
Methodology
For this article we first listed down the most popular stocks on Robinhood. To find those stocks we used Robinhood’s Investor Index tool and also used some third party tools and manual research to see which stocks retail investors love the most on the stock trading platform. From this dataset we picked 11 stocks with the highest number of billionaire investors. For that we used Insider Monkey’s proprietery database of billionaire-owned stocks. Some notable names in the list include Meta Platforms Inc (NASDAQ:META), NVIDIA Corp (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN).
11. Walt Disney Co (NYSE:DIS)
Number of Billionaire Investors: 17
Despite growth concerns and challenges the entertainment giant is facing, Walt Disney Co (NYSE:DIS) remains one of the most popular stocks on Robinhood.
As of the end of the third quarter of 2023, 17 billionaires in Insider Monkey’s database had stakes in Walt Disney Co (NYSE:DIS). Some notable billionaires with Walt Disney Co (NYSE:DIS) stakes include Nelson Peltz, Ken Fisher and Israel Englander. It’s important to note that Peltz is getting ready to launch a proxy fight at Walt Disney Co (NYSE:DIS) to get board representation. He owns a $2.6 billion stake in Walt Disney Co (NYSE:DIS).
Madison Sustainable Equity Fund made the following comment about The Walt Disney Company (NYSE:DIS) in its Q3 2023 investor letter:
“During the quarter, we sold our positions in Bristol-Myers Squibb and The Walt Disney Company (NYSE:DIS). The Walt Disney Company is facing a difficult and uncertain transition in its core media business assets including the ESPN business and other linear media assets. These media assets are cash generative but face secular decline as consumers are cutting their expensive cable subscriptions and moving to alternative streaming options. This has resulted in a decline in operating profits for the media division. The media business has long-term fixed costs related to its sports broadcasting agreement with multiple sports leagues which will further pressure profits during this transition.”
10. Tesla Inc (NASDAQ:TSLA)
Number of Billionaire Investors: 18
Tesla Inc (NASDAQ:TSLA) is one of the most divisive yet popular stocks in the Street. While some analysts and famous investors keep shorting the stock, others believe Tesla Inc (NASDAQ:TSLA) will only go up from here. Tesla Inc (NASDAQ:TSLA) shares were among the winners in 2023, having gained about 119% year to date through December 13. Michael Kantrowitz, chief investment strategist at Piper Sandler, recently said that the Magnificent Seven group of stocks, which includes Tesla Inc (NASDAQ:TSLA), is expected to keep gaining in 2024. Other key members of the Magnificent Seven group include Meta Platforms Inc (NASDAQ:META), NVIDIA Corp (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN).
A total of 18 billionaires in Insider Monkey’s database were long Tesla Inc (NASDAQ:TSLA) as of the end of the third quarter of 2023. Some notable billionaires with stakes in the EV giant include DE Shaw and Cliff Asness.
Here is what White Brook Capital has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Tesla, Inc. (NASDAQ:TSLA), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”
9. Walmart Inc (NYSE:WMT)
Number of Billionaire Investors: 18
Walmart Inc (NYSE:WMT) ranks 9th in our list of the best Robinhood stocks according to billionaires. Insider Monkey’s database of billionaires shows that 18 billionaires had stakes in the retail giant as of the end of September.
Recently, TD Cowen’s retail equity research team named Walmart Inc (NYSE:WMT) one of its best ideas for 2024. The firm likes Walmart Inc’s (NYSE:WMT) leadership position in the retail sector as well as its investments in Walmart+ and digital ads. TD Cowen set a whopping $188 price target on Walmart Inc (NYSE:WMT). The stock was trading at around $152 as of December 14.
8. Apple Inc (NASDAQ:AAPL)
Number of Billionaire Investors: 19
Apple Inc (NASDAQ:AAPL) ranks 8th in our list of the best Robinhood stocks according to billionaires.
A total of 19 billionaires in Insider Monkey’s database of money managers had stakes in the iPhone maker. Some notable billionaires with stakes in Apple Inc (NASDAQ:AAPL) include Warren Buffett, Ken Fisher, D. E. Shaw and Cliff Asness.
Hayden Capital made the following comment about Apple Inc. (NASDAQ:AAPL) in its third 2023 investor letter:
“Even Berkshire Hathaway’s most famous investment of the last decade – Apple Inc. (NASDAQ:AAPL) – was based on a similar set up. When Berkshire invested in 2016, Apple’s subscription revenues were just starting to cross ~10% of total revenues. Today, that figure is ~25%.
While operating income has grown +90% from 2016 to 2023, the valuation multiple itself has expanded by ~300%, from ~6x EV/EBIT to ~24x EV/EBIT today.
Investors have evolved their perception of Apple’s products – from that of a “fad” hardware company at risk of competition, to that of a “consumer staple”, a necessary part of a household’s budget…” (Click here to read the full text)
7. Netflix Inc (NASDAQ:NFLX)
Number of Billionaire Investors: 20
Netflix Inc (NASDAQ:NFLX) is one of the stocks popular among retail investors on Robinhood as well as billionaires.
Goldman Sachs recently issued a list of stocks poised to benefit in 2024. Netflix Inc (NASDAQ:NFLX) made it to the list as Goldman sees new trends in content creation and distribution in the year.
A total of 20 billionaires in Insider Monkey’s database had stakes in Netflix Inc (NASDAQ:NFLX).
Like Netflix, Meta Platforms Inc (NASDAQ:META), NVIDIA Corp (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN) also remained in the spotlight in 2023.
Carillon Clarivest Capital Appreciation Fund made the following comment about Netflix, Inc. (NASDAQ:NFLX) in its Q3 2023 investor letter:
“During the third quarter of 2023, an underweight to real estate and an overweight to healthcare helped performance, while an overweight to information technology and an underweight to energy detracted. Stock selection was strong within information technology and consumer staples but was weak within financials and communication services. Netflix, Inc. (NASDAQ:NFLX), the internet streaming subscription service company, missed expectations. That suggested the company’s crackdown on pass-word sharing has yet to deliver the sales growth analysts expect.”
6. Alibaba Group Holding Ltd – ADR (NYSE:BABA)
Number of Billionaire Investors: 22
Despite growth concerns and share price losses in 2023, Alibaba Group Holding Ltd – ADR (NYSE:BABA) remains on the radar of billionaires on the back of hopes that the Chinese ecommerce giant might one day be able to gain back its glory days.
Among the billionaires tracked by Insider Monkey, 22 had stakes in Alibaba Group Holding Ltd – ADR (NYSE:BABA) as of the end of the September quarter. Some notable billionaires with stakes in Alibaba Group Holding Ltd – ADR (NYSE:BABA) include Ken Fisher, David Tepper, Chinese billionaire Lei Zhang and Israel Englander.
L1 Long Short Fund made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its second quarter 2023 investor letter:
“Alibaba Group Holding Limited (NYSE:BABA) (Long -18%) shares weakened in recent months as Chinese reopening strength faded and macro-economic datapoints began sequentially declining. Nevertheless, we believe the Chinese government will use consumption as a key lever to reinvigorate the economy post-COVID lockdowns. Alibaba remains a high-quality business with leading positions in both eCommerce and Public Cloud, and management is taking proactive steps to unlock shareholder value. It has announced plans to split into six major business groups – Cloud Intelligence, Taobao Tmall, Local Services, Global Digital, Cainiao Smart Logistics and Digital Media, and Entertainment Group. Each group will be managed independently, with a separate CEO and board, have the flexibility to raise external capital and potentially pursue separate IPOs. We believe this restructure will be a strong positive catalyst to unlock the sum-of-the-parts valuation upside in the company.”
5. NVIDIA Corp (NASDAQ:NVDA)
Number of Billionaire Investors: 29
One of the obvious names in our list of the best Robinhood stocks is NVIDIA Corp (NASDAQ:NVDA), which has nothing but glory days ahead due to the huge growth in AI chips demand. Both retail investors and billionaires have been piling into the stock to ride the AI wave.
Citi recently opened a 30-day catalyst watch on NVIDIA Corp (NASDAQ:NVDA) as it believes the stock can rally more in the short-term on upcoming catalysts.
“Our supply chain discussions indicate a stronger-than-expected CY2024 GPU unit outlook of 3.7M+ vs. our 3.2M forecast. A strong 2024 unit outlook implies accelerating US hyperscale cloud capex next year and faster-than-expected adoption of NVDA’s upcoming H200 and B100 GPUs,” Citi analysts Atif Malik and Papa Sylla said in a note.
Here is what White Brook Capital has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes NVIDIA Corporation (NASDAQ:NVDA), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”
4. Meta Platforms Inc (NASDAQ:META)
Number of Billionaire Investors: 32
Meta Platforms Inc (NASDAQ:META) is also among the stocks that stand to benefit from the AI revolution. Meta Platforms Inc (NASDAQ:META) already impressed the Wall Street with its financial numbers and growth earlier this year as Mark Zuckerberg’s plan to use AI to boost Reels engagement and improve recommendation algorithm seems to be working.
Oppenheimer recently released its AI predictions report in which it said companies would improve generative AI models and make them more efficient, which would result in cost declines. The firm said this phenomenon would help Meta Platforms, in addition to some other major stocks.
A total of 32 billionaires had stakes in Meta Platforms Inc (NASDAQ:META) as of the end of the third quarter of 2023. Some famous billionaires with stakes in Meta Platforms Inc (NASDAQ:META) were Rajiv Jain, Ken Fisher, Andreas Halvorsen and DE Shaw.
Here is what Claret Asset Management has to say about Meta Platforms, Inc. (NASDAQ:META) in its Q3 2023 investor letter:
“We have mentioned in the last letter that the “magnificent seven”, including Meta Platforms Inc.,dominated the performance of the S&P 500. We might have left you with the feeling that we are bearish because we don’t find the Magnificent 7 attractive. Let us make it clear: we are just not so pessimistic as to believe there are only 7 growth opportunities in the entire global equity market. In fact, we are optimists and think opportunity is abundant. Just not in everyone’s current 7 favorite stocks.”
3. Amazon.com Inc (NASDAQ:AMZN)
Number of Billionaire Investors: 33
Goldman Sachs recently released a report which talks about the top stocks that will benefit in 2024 due to the AI wave. Amazon.com Inc (NASDAQ:AMZN) is among the biggest beneficiaries of AI trends, according to the firm.
A total of 33 billionaires in Insider Monkey’s database had stakes in Amazon.com Inc (NASDAQ:AMZN) as of the end of the third quarter of 2023. Some notable billionaires having stakes in Amazon.com Inc (NASDAQ:AMZN) are Ken Fisher, Rajiv Jain, Warren Buffett and Andreas Halvorsen.
Here is what White Brook Capital has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Amazon.com, Inc. (NASDAQ:AMZN), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth.”
2. Alphabet Inc Class C (NASDAQ:GOOG)
Number of Billionaire Investors: 34
When ChatGPT was launched by OpenAI, many said Alphabet Inc Class C (NASDAQ:GOOG) was a laggard in the AI race. But if anything, the generative AI race started by Microsoft Corp (NASDAQ:MSFT) gave a nudge to Alphabet Inc Class C (NASDAQ:GOOG) to get its act together and unleash its potential. Analysts at Citi recently said the company’s AI model Gemini will be a growth catalyst for the stock in 2024. They believe the LLM “levels the playing field across the broader GenAI landscape based on its ability to understand data across types.”
Here is what White Brook Capital has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Alphabet Inc. (NASDAQ:GOOG), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”
1. Microsoft Corp (NASDAQ:MSFT)
Number of Billionaire Investors: 34
Microsoft Corp (NASDAQ:MSFT) tops our list of the best Robinhood stocks according to billionaires. Microsoft Corp (NASDAQ:MSFT) stock is gaining a lot of popularity among retail investors on Robinhood and Reddit, while the stock is the most popular among the 910 elite hedge funds tracked by Insider Monkey.
A total of 34 billionaires had stakes in Microsoft Corp (NASDAQ:MSFT) as of the end of the September quarter.
Here is what White Brook Capital has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Microsoft Corporation (NASDAQ:MSFT), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the 11 Best Dividend Stocks on Robinhood and the 11 Robinhood Stocks with Biggest Upside.
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- 11 Best Dividend Stocks on Robinhood
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Disclosure. None. 11 Best Robinhood Stocks According to Billionaires was initially published on Insider Monkey.
