In this article, we will take a look at the 5 Robinhood stocks with biggest upside. To see more such companies, go directly to 11 Robinhood Stocks with Biggest Upside.
5. Applied Optoelectronics Inc. (NASDAQ:AAOI)
Number of Hedge Fund Holders: 10
Fiber optics networking products company Applied Optoelectronics Inc. (NASDAQ:AAOI) ranks 5th in our list of the best Robinhood stocks to buy. Applied Optoelectronics Inc. (NASDAQ:AAOI) is already up a whopping 400% over the past one year but analysts believe it has more room to run. Recently, B. Riley Securities upgraded the stock to Buy from Neutral, citing improving demand and margins. The firm upped its price target for Applied Optoelectronics Inc. (NASDAQ:AAOI) to $11.50 from $2.50.
As of the end of the second quarter of 2023, 10 hedge funds tracked by Insider Monkey had stakes in Applied Optoelectronics Inc. (NASDAQ:AAOI).
4. Nokia Corporation (NYSE:NOK)
Number of Hedge Fund Holders: 15
Nokia Corporation (NYSE:NOK) ranks 4th in our list of the best Robinhood stocks with upside potential. Nokia Corporation (NYSE:NOK) remains a behemoth in the telecom and connectivity segment and the company is also expanding its home connectivity offerings.
Insider Monkey’s database of 910 hedge funds shows that 15 hedge funds had stakes in Nokia Corporation (NYSE:NOK).
Artisan International Value Fund made the following comment about Nokia Oyj (NYSE:NOK) in its second quarter 2023 investor letter:
“Nokia Oyj (NYSE:NOK) is the world’s third-largest provider of telecommunications equipment. The company sells its products to service providers, such as AT&T and Vodaphone. While we have held the stock, new management has simultaneously improved competitiveness and reduced costs—a remarkable achievement that has resulted in improved growth and profitability. Despite that, the share price has declined, and the valuation multiple has shrunk below 10X forward earnings. The reason is that telecommunications operators are cutting back on investment. Higher interest rates, inflation and competition are eating into customer cash flows, resulting in less capital spending. For now, Nokia will experience reduced demand. At some point, the ever-increasing need for wire and wireless bandwidth will force service providers to increase investment. In addition, Nokia’s market share is improving due to geopolitical changes and improved market competitiveness. The share price declined by 15% during the quarter.”
3. Airbnb, Inc. (NASDAQ:ABNB)
Number of Hedge Fund Holders: 47
Airbnb, Inc. (NASDAQ:ABNB) is making moves after the stock was added to the S&P 500 index. Analysts also believe Airbnb, Inc. (NASDAQ:ABNB) could gain value amid expectations that it would announce generative AI features integration with its platform later this year. Airbnb, Inc. (NASDAQ:ABNB)’s GAAP EPS in the second quarter of 2023 came in at $0.98 beating estimates by $0.20. Revenue in the quarter jumped 18.1% year over year to $2.48 billion, surpassing estimates by $60 million.
As of the end of the second quarter of 2023, 47 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Airbnb, Inc. (NASDAQ:ABNB). The biggest ABNB stakeholder of Airbnb, Inc. (NASDAQ:ABNB) was John Overdeck and David Siegel’s Two Sigma Advisors which owns a $223 million stake in the company.
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 278
Amazon.com, Inc. (NASDAQ:AMZN) has a huge upside potential amid its AI capabilities in the Cloud computing industry. AWS is offering several AI-related features for developers to design, build and deploy AI applications. Amazon.com, Inc. (NASDAQ:AMZN) is also a leader in the ecommerce market that is alive and thriving. This makes several top analysts believe that Amazon.com, Inc. (NASDAQ:AMZN) has a lot of room to grow in the coming months and years.
Hedge funds also agree with this bullish thesis. As of the end of the first quarter of 2023, 278 hedge funds reported owning stakes in Amazon.com, Inc. (NASDAQ:AMZN), up from 243 funds in the previous quarter.
RiverPark Large Growth Fund made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2023 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN): Amazon was a top contributor in the second quarter, in reaction to a solid 1Q23 earnings report. The company generated $127 billion of revenue (2% ahead of expectations) and nearly $5 billion of operating income (57% better than expectations) driven by rebounding online sales and strong incremental gross margins. During the company’s earnings conference call, Amazon management pointed to easing inflationary pressures, higher productivity gains, and lower expected capital spending for the remainder of the year. The only negative in the quarter was slowing AWS revenue growth, which we believe will rebound later in the year.
With its ability to continue its market share gains in three leading businesses (e-commerce, web services and online advertising), plus a multi-year operating margin expansion opportunity (from improved e-commerce margins and greater contribution from the faster growing, higher margin AWS and advertising segments), we believe Amazon remains one of the best-positioned global growth companies in the world. AMZN shares trade at a 10-year trough EPS multiple, despite what we believe to be currently depressed margins and earnings.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 300
Microsoft Corporation (NASDAQ:MSFT) is one of the best stocks available on Robinhood with upside potential. The biggest growth catalysts for Microsoft Corporation (NASDAQ:MSFT) are its several AI-related offerings. Recently, Needham Securities said that Microsoft Corporation (NASDAQ:MSFT) is among the top three front-runners in the AI race amid its LLM capabilities.
Microsoft Corporation (NASDAQ:MSFT) is the most popular stock among smart money investors tracked by Insider Monkey.
Alger Spectra Fund made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q2 2023 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) is a beneficiary of corporate America’s transformative digitization. Microsoft’s CEO expects technology spending as a percent of Gross Domestic Product (GDP) to jump from about 5% now to 10% in 10 years and that Microsoft will continue to capture market share within the technology sector. The company operates through three segments: Productivity and Business Processes (Office, LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services, Azure, and Enterprise Services), and More Personal Computing (Windows, Devices, Gaming, and Search). During the period, shares contributed to performance as the company reported fiscal third quarter results above expectations driven by outperformance in More Personal Computing and Office Commercial. Additionally. management provided in-line Azure guidance, easing investor concerns of a potential slowdown in Azure growth estimates. Moreover, management provided encouraging commentary around Al, noting strong long-term opportunities as they integrate various Al offerings into their products and services.”
You can also take a peek at Wall Street Analysts See Upside Potential for 10 Stocks with Rising Price Targets and 16 Most Profitable Dividend Stocks.
