Below are the 5 best stocks to buy for 2021 according to billionaire Stanley Druckenmiller. For a comprehensive list, please see the 10 best stocks to buy according to billionaire Stanley Druckenmiller.
5. Sea Limited (NYSE: SE)
The e-commerce gaming fintech player Sea Limited (NYSE: SE) is one of the best stocks to buy for 2021 according to Stanley Druckenmiller. The billionaire investor first initiated a position in Sea Limited during the first quarter of 2019 and it currently accounts for 4.39% of the portfolio valued at $151 million. It is the fifth-largest stock holding of Druckenmiller’s family office portfolio.
Sea Limited is one of the best performers of this year. Its share price soared close to 420% in the last twelve months, thanks to strong demand amid staying at home policies. The e-commerce gaming fintech company has reported 100% year over year revenue growth in the latest quarter, with expectations that full-year revenue will increase 119% from fiscal 2019.
The robust revenue growth also helped the company in turning the losses into profits. Its September quarter at adjusted EBITDA came in at $120.4 million compared to a loss of $30.8 million in the year-ago period.
4. Alibaba Group Holding (NYSE: BABA)
Shares of the largest Chinese e-commerce giant Alibaba underperformed this year compared to closest competitors amid Donald Trump’s strict policies against Chinese firms.
Meanwhile, Druckenmiller’s family office saw it as a buying opportunity as the firm has significantly added to its existing position during the third quarter. It has raised BABA stake by 25% to 0.54 million shares valued at $160 million. It is the fourth largest stock holding of Druckenmiller’s portfolio, accounting for 4.66% of the overall portfolio.
Alibaba share price soared only 20% so far in fiscal 2020 despite robust growth in revenues and active users. Its September quarter revenue of $22.8 billion jumped 30% from the past year period.
“We remain focused on our three long-term growth engines – domestic consumption, cloud computing, and data intelligence, and globalization – to effectively capture opportunities from the ongoing changes in consumer demand and acceleration of digitalization of businesses across our digital economy,” said Daniel Zhang, Chairman and Chief Executive Officer of Alibaba Group.
3. T-Mobile US (NASDAQ: TMUS)
The wireless telecommunication services company T-Mobile US (NASDAQ: TMUS) is among the best performers this year considering the massive share price gains.
The billionaire Stanley Druckenmiller first created a stake in T-Mobile US during the second quarter of this year and expanded its stake by 26% during the September quarter, making it the third-largest stock holding of the portfolio.
Shares of T-Mobile US jumped 70% this year, extending the five years gains to 250%. Its September quarter revenue of $19 billion grew 74% year over year.
“Customers are choosing T-Mobile in record numbers because we are the only ones that can deliver this combination of value and experience with a true 5G network that is available to customers in every single state! We’re consistently and profitably outpacing the competition – and we’re just getting started,” the company said.
2. Amazon (NASDAQ: AMZN)
The world’s largest e-commerce giant Amazon (NASDAQ: AMZN) is among the biggest beneficiaries of the pandemic and users shift towards online platforms. It is the second-largest stock holding of the Stanley Druckenmiller family office portfolio. The firm currently holds 86,717 shares of Amazon valued at $273 million, accounting for 7.93% of the portfolio.
Shares of the largest e-commerce giant soared 80% this year, driven by robust growth in revenues. Amazon has generated $96 billion in the September quarter revenue, representing a growth of 37.3% year over year.
Moreover, the company expects fourth-quarter revenue to hit $121 billion. “We’re seeing more customers than ever shopping early for their holiday gifts, which is just one of the signs that this is going to be an unprecedented holiday season,” Jeff Bezos said.
1. Microsoft Corporation (NASDAQ: MSFT)
The long-running investment in the technology giant Microsoft Corporation (NASDAQ: MSFT) continues to generate massive returns for the billionaire investor. It is the largest stock holding valued at around $550 million and accounting for 16.15% of the overall portfolio.
Druckenmiller’s family office first created a stake in the technology giant in 2015. The firm has increased its stake by 46% in the latest quarter.
Microsoft Corporation has the potential to generate sustainable returns for investors despite market uncertainties. Shares of the technology giant soared 40% in the last twelve months and are up 290% in the last five years. In addition, the company also offers massive returns to shareholders in the form of cash returns. Its five-year average dividend growth rate stands around 10%.
Please also see: 10 Best Gold Stocks To Buy Now According To Billionaire Hedge Fund and 10 Best Chinese Stocks To Buy Now
