In this article, we will take a look at the 5 stocks that will skyrocket. To see more such companies, go directly to 10 Stocks That Will Skyrocket.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 135
Apple is one of the top stocks analysts believe are expected to double in the next 5 to 10 years because of its massive foray into software, services and apps. Apple is always innovating and chances are the company will come up with more streams of income to cut its reliance on its flagship device iPhone, which is still posting strong sales.
As of the end of the second quarter of 2023, 135 hedge funds out of the 910 funds tracked by Insider Monkey reported owning stakes in Apple. The biggest stakeholder of the company was Warren Buffett’s Berkshire Hathaway which has a $178 million stake in the company.
Aristotle Large Cap Growth Strategy made the following comment about Apple Inc. (NASDAQ:AAPL) in its Q3 2023 investor letter:
“Apple Inc. (NASDAQ:AAPL) contributed to outperformance in the third quarter, as a result of the underweight position relative to the benchmark. Following a very strong first-half performance, the stock saw a pullback ahead of the iPhone 15 launch, as investors weigh the potential growth from the new phone in the face of macroeconomic headwinds and slowing consumer spend.”
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 175
Nvidia shares were falling on October 31 amid worries related to new export rules regarding China that can bar US companies from exporting chips to the country. While these rules could affect Nvidia in the short-term, the long-term, AI-driven catalysts for the company remain strong as it is enjoying a near monopoly in the AI industry because of its specialized chips.
As of the end of the second quarter of 2023, 175 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in the company. The biggest stakeholder of the company was GQG Partners of Rajiv Jain which had a stake worth about $6 billion in the company.
Artisan Developing World Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter:
“Our focus on scalable business models has its roots in our economic framework. As potential output moderated in most emerging countries, it became clear to us affordability was not improving and that low penetration was necessary but not sufficient for value creation. We eliminated companies from the portfolio that were struggling to generate revenue significantly in excess of fixed costs, often replacing them with passport companies such as NVIDIA Corporation (NASDAQ:NVDA) and Airbnb that were economically tied to emerging markets. Over a period of time, we have been successful in redefining the emerging markets opportunity set around real per capita GDP increases, growth in the middle class, revenue velocity and demand fulfilment. Combined with changes in the market backdrop that have resulted in privileged competitive positions for companies with financial strength and access to capital, we find our opportunity set expanding anew to include companies that are both based in emerging markets and conducive to value creation.”
3. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 204
Alphabet shares could skyrocket in the future since the company has a diverse revenue stream, ranging from ads, Cloud, self-driving unit, futuristic projects, video, among many others. The company is investing heavily to evolve amid the changing landscape in the search industry. The company recently posted Q3 results. GAAP EPS in the period came in at $1.55, beating estimates by $0.10. Revenue in the period jumped 11.1% year over year to $76.79 billion, surpassing estimates by $980 million.
Madison Sustainable Equity Fund made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2023 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) continued to act well during the third quarter. Google’s second quarter was better than expected and showed both ad stabilization as well as progress on its cost structure. We continue to like Google’s position in Artificial Intelligence (AI), which it has been investing in and using across its core Search business, YouTube, and its ad quality systems. Google’s Cloud business is also expected to benefit as businesses expand their use of generative AI.”
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 225
Huge investments in AI, dominance in the social platforms industry and innovative advertising models remain some of the key catalysts that could boost Meta Platforms stock to higher levels in the next 5 to 10 years. Recently the company posted strong Q3 results. The stock, however, wavered, mainly due to the company’s commentary after the earnings in which the management sounded “cautious,” according to many analysts. This cautious approach, according to analyst firms like Jefferies and William Blair, was mostly due to the latest geopolitical conflicts and macro environment that could affect the company’s ads demand. However, in the long term the stock remains solid.
Aristotle Large Cap Growth Strategy made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q3 2023 investor letter:
“Meta Platforms, Inc. (NASDAQ:META), formerly known as Facebook, is a global technology company specializing in social networking and the development of augmented and virtual reality technologies. Founded in 2004 and headquartered in Menlo Park, CA, the company has expanded its reach to nearly three billion monthly active users worldwide.
We see Meta as well-positioned to capture a significant share of the rapidly growing digital advertising market and has created an interconnected ecosystem of apps that drives higher user engagements. While leveraging AI and machine learning technology, Meta should see an acceleration in the development of targeted digital advertising capabilities and enhance the user experience across its platform. We see near-term catalysts in Rising Reels and Messenger revenue monetization and an expected robust 2024 political and Olympic advertising. Year-to-date, investors have been optimistic about the company’s pivot away from a focus on metaverse investments to an emphasis on profitability and growth in what the company calls its “Year of Efficiency.””
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 278
Analysts believe Amazon stock could double in the next 5 to 10 years because of its growth in AWS business and e-commerce business, along with other forays such as streaming and healthcare. Amazon recently posted third quarter results. EPS in the third quarter came in at $0.94 crushing estimates of $0.60. Revenue in the period jumped 12.6% year over year to $143.1 billion, beating estimates by $1.54 billion.
As of the end of the second quarter of 2023, 278 hedge funds tracked by Insider Monkey had stakes in the company.
White Falcon Capital Management made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2023 investor letter:
“There are comparable narratives involving NU Holdings, Amazon.com, Inc. (NASDAQ:AMZN), and Teck Resources, to name a few holdings from the White Falcon portfolio. Amazon constructed its logistics network and cloud computing infrastructure using yesterday’s currency, but it is poised to capitalize on this network with the inflated dollars of tomorrow. In essence, we believe we hold wonderful businesses with growing revenue streams and potential for operating leverage – all at reasonable valuations.”
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