In this article, we will discuss the 8 Best Stocks to Buy According to Abdiel Capital Advisors.
Abdiel Capital Advisors is an activist hedge fund that was co-founded by Colin Moran, its current managing partner. He has worked as an investment banking associate at Goldman Sachs and as an associate, then partner, at Chieftain Capital. Abdiel was started in 2006. Geoff Gentile, who is also a Managing Partner of the investment firm, has worked in structured credit and as an associate director at Barclays, before leaving to start this firm in 2006.
Abdiel Capital Advisors generally makes investments in publicly-traded companies, which can gain market share over the long term. It prefers businesses possessing recurring revenue and that are managed by people having a large share of their net worth in the stock. The investment firm targets returns that are good on an absolute basis and that outperform the market, measured over 3-5 years. The investment firm estimates the return that the company’s cash flows will deliver to someone who purchased the entire business at the available stock price and held it permanently.
As per Oscar Ostlund, global head of content strategy, market analytics & data science for Marquee in Goldman Sachs Global Banking & Markets, several factors have raised the outlook for US equities. The signs of a more dovish Fed have played a significant role. Furthermore, rates coming down sooner than earlier anticipated will likely fuel the US stock valuations.
Amidst such a backdrop, we will now have a look at the 8 Best Stocks to Buy According to Abdiel Capital Advisors.
Colin Moran of Abdiel Capital Advisors
Our Methodology
To list the 7 Best Stocks to Buy According to Abdiel Capital Advisors, we selected the top stocks in Abdiel Capital Advisors’ portfolio as of its Q1 2025 13F filing. We settled on the hedge fund’s 7 biggest holdings. Finally, we ranked the stocks in ascending order based on the value of Abdiel Capital Advisors’ equity stakes. Additionally, we have mentioned the hedge fund sentiments around each stock, as of Q1 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
7 Best Stocks to Buy According to Abdiel Capital Advisors
7. Affirm Holdings, Inc. (NASDAQ:AFRM)
Abdiel Capital Advisors’ Equity Stake: $50.3 million
Number of Hedge Fund Holders: 63
Affirm Holdings, Inc. (NASDAQ:AFRM) is one of the 7 Best Stocks to Buy According to Abdiel Capital Advisors. On July 23, Susquehanna lifted the price target on the company’s stock to $76 from $65, while keeping a “Positive” rating, as reported by The Fly. While it lifted the target, it reduced its estimates as data reflects strong volume, and they are maintaining their high TPV. Furthermore, supply is abundant in the private credit markets, and as adoption of BNPL grows mainstream, it is moving up market, where investors can expect higher adoption among the affluent.
In Q3 2025, Affirm Holdings, Inc. (NASDAQ:AFRM)’s Gross Merchandise Volume (GMV) saw an increase of 36% to $8.6 billion, and growth ramped up as it exited the quarter, with GMV in March rising 40%. Notably, the growth was broad-based with contributions from its largest merchant partner, wallet partners, direct-to-consumer offerings such as Affirm Card, and the remainder of the business. Affirm Holdings, Inc. (NASDAQ:AFRM)’s GMV from its top 5 merchants and platform partners collectively increased 31%. The company’s total revenue rose 36% to $783 million. Notably, the revenue as a percentage of GMV stood at 9.2%, the same as in Q3 2024.
Affirm Holdings, Inc. (NASDAQ:AFRM) operates the payment network.
6. Global-E Online Ltd. (NASDAQ:GLBE)
Abdiel Capital Advisors’ Equity Stake: $82.3 million
Number of Hedge Fund Holders: 32
Global-E Online Ltd. (NASDAQ:GLBE) is one of the 7 Best Stocks to Buy According to Abdiel Capital Advisors. On July 22, the company announced the extension of its strategic partnership with DHL International (UK) Limited through a First Amendment to their Global Service Agreement. The collaboration has been renewed for an additional span of 3 years. This agreement, together with an amendment to a commercial side letter with DHL International GmbH, demonstrates a continued commitment to improve logistics and service offerings worldwide.
While the broader market remains volatile, Global-E Online Ltd. (NASDAQ:GLBE) believes that its pipeline remains very active, and it sees increased interest in its services. The company has also launched its 3B2C offering, enabling merchants to partially mitigate unnecessary price increases in critical destination markets while avoiding the expenses and effort involved in creating a full multi-local setup for specific markets.
For Q2 2025, Global-E Online Ltd. (NASDAQ:GLBE) expects GMV of between $1,387 million – $1,427 million, and revenue of $204 million – $211 million.
Global-E Online Ltd. (NASDAQ:GLBE) offers a direct-to-consumer cross-border e-commerce platform.
5. Toast, Inc. (NYSE:TOST)
Abdiel Capital Advisors’ Equity Stake: $119.5 million
Number of Hedge Fund Holders: 64
Toast, Inc. (NYSE:TOST) is one of the 7 Best Stocks to Buy According to Abdiel Capital Advisors. On July 22, Truist upped the price target on the company’s stock to $50 from $48, while keeping a “Buy” rating, as reported by The Fly. Notably, the firm likes the setup for the FinTech sector as earnings in totality can be strong, with the group underperforming in recent times. Toast, Inc. (NYSE:TOST) highlighted that it continues to see robust momentum throughout both its core business and its new verticals in international, retail, and enterprise, including marquee wins in Applebee’s and Topgolf.
Toast, Inc. (NYSE:TOST) signed an agreement with Topgolf, which is a leader in modern golf entertainment that pairs a “no golf knowledge needed” experience with a full-service restaurant and bar. Notably, Topgolf will implement Toast Enterprise Solutions throughout its US venues. The 4 priorities have been laid out for the business: Scaling locations and market share in its core US restaurant business, demonstrating that its new markets could be significant growth drivers, increasing customer adoption of the broad platform and fueling differentiation via data and AI, and finally, holding a high bar and investing against the most important priorities while gradually enhancing the margins.
In Q1 2025, Toast, Inc. (NYSE:TOST)’s gross payment volume rose 22% YoY to $42.2 billion.
Toast, Inc. (NYSE:TOST) operates a cloud-based digital technology platform for the restaurant industry.
4. BILL Holdings, Inc. (NYSE:BILL)
Abdiel Capital Advisors’ Equity Stake: $128.3 million
Number of Hedge Fund Holders: 53
BILL Holdings, Inc. (NYSE:BILL) is one of the 7 Best Stocks to Buy According to Abdiel Capital Advisors. On July 22, Truist lifted the company’s price objective to $50 from $47, while keeping a “Hold” rating. Notably, the firm likes the setup for a broader FinTech sector as earnings results in totality are expected to be strong, and the group has underperformed recently. During Q3 2025, BILL Holdings, Inc. (NYSE:BILL) expanded its platform with a suite of mid-market solutions, enhanced its payment portfolio with streamlined reconciliation, and broadened and diversified the distribution ecosystem.
In Q3 2025, the company’s total revenue amounted to $358.2 million, reflecting an increase of 11% YoY, with core revenue (which consists of subscription and transaction fees) coming at $320.3 million, 14% YoY growth. Furthermore, BILL Holdings, Inc. (NYSE:BILL)’s FCF grew by 44% YoY in Q3 2025. The company has been accelerating its AI growth strategy, and in Q3 2025, its solutions automated the financial operations for more than 488,000 businesses. BILL Holdings, Inc. (NYSE:BILL) processed $79 billion in total payment volume, reflecting an 11% YoY increase.
Talking about the distribution ecosystem, BILL Holdings, Inc. (NYSE:BILL) continues to broaden its reach with accounting firms. Apart from driving the accelerated customer adoption of its AP and AR solution, the concerted efforts from both product and go-to-market have been unlocking the accounting channel as a cross-sell engine. Parnassus Investments, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“We initiated positions in several disruptive, highly innovative companies whose valuations fell sharply during the sell-off. We re-initiated a position in BILL Holdings, Inc. (NYSE:BILL), which operates an innovative SMB-focused payments automation platform (Bill.com). We see significant growth potential ahead resulting from its ability to further penetrate the market for small-to medium-sized businesses.”
BILL Holdings, Inc. (NYSE:BILL) offers a financial operations platform for small and midsize businesses worldwide.
3. Floor & Decor Holdings, Inc. (NYSE:FND)
Abdiel Capital Advisors’ Equity Stake: $131.3 million
Number of Hedge Fund Holders: 44
Floor & Decor Holdings, Inc. (NYSE:FND) is one of the 7 Best Stocks to Buy According to Abdiel Capital Advisors. On July 21, TD Cowen analyst Max Rakhlenko maintained a “Hold” rating on the company’s stock and set a price target of $80.00. The analyst’s rating is backed by factors that demonstrate a balanced risk-reward scenario for Floor & Decor Holdings, Inc. (NYSE:FND). Despite a marginal rise in the price objective, the recommendation remains neutral, with the potential benefits from anticipated rate cuts and market share opportunities being offset by uncertainties.
These uncertainties consist of the magnitude of the housing market rebound as well as the near-term visibility into comparable sales turnaround, added the firm’s analyst. Notably, while the flooring industry reflects some signs of improvement, the trends are generally soft, opines Rakhlenko. As per the analyst, while there remains speculation related to the potential acquisitions, the market’s reaction to such moves is uncertain, mainly considering Floor & Decor Holdings, Inc. (NYSE:FND)’s current focus on capital preservation.
Wasatch Global Investors, an asset management company, released its Q4 2024 investor letter. Here is what the fund said:
“Another detractor on the long side was Floor & Decor Holdings, Inc. (NYSE:FND). The company is a specialty multi retailer of hard-surface flooring. Floor & Décor sources some of its supplies from China, and was likely down on concerns that increased tariffs under a Donald Trump presidency would raise costs for the business. While tariffs would be a headwind, it doesn’t change our thesis on the company. Floor & Decor has become a “category killer” among the big-box home centers. And because the company cuts out middlemen and buys in large quantities, it can offer its customers a wider selection of flooring at lower prices than most of its competitors. Floor & Decor’s expanding retail footprint, strong cash flows and solid balance sheet also provide the company with what we consider a built-in engine for self-funded growth.”
2. HCA Healthcare, Inc. (NYSE:HCA)
Abdiel Capital Advisors’ Equity Stake: $164.8 million
Number of Hedge Fund Holders: 74
HCA Healthcare, Inc. (NYSE:HCA) is one of the 7 Best Stocks to Buy According to Abdiel Capital Advisors. On July 25, Jamie Perse, an analyst from Goldman Sachs, maintained a “Hold” rating on the company’s stock, and the associated price target is $332.00. The analyst’s rating is based on the company’s recent financial performance, which showcased a mixed picture. HCA Healthcare, Inc. (NYSE:HCA) posted a stronger-than-expected EBITDA, exceeding the consensus estimates, thanks to the favorable pricing and mix and effective expense management in labor and other operational costs, added the firm’s analyst.
In Q2 2025, the company’s adjusted EBITDA rose 8.4% to $3.849 billion. Despite the positive aspects, the volume growth remained below expectations. Notably, HCA Healthcare, Inc. (NYSE:HCA)’s same facility admissions rose 1.8% and same facility equivalent admissions went up by 1.7%. Even though HCA Healthcare, Inc. (NYSE:HCA) increased its guidance for the year, the current volume trends raise concerns related to the sustainability of growth going forward, added Perse. For FY 2025, the company expects revenues in the range of $74.00 billion – $76.00 billion, an increase from the prior guidance of $72.80 billion – $75.80 billion.
L1 Capital, an investment management firm, released its Q2 2025 investor letter. Here is what the fund said:
“HCA Healthcare, Inc. (NYSE:HCA) is the leading for-profit hospital operator and outpatient services provider in the U.S. In our December 2024 Quarterly Report we outlined our thoughts on why we considered the 25% fall in the share price due to healthcare policy concerns was excessive, and that the share price had fallen to a level where base case risk adjusted returns were compelling and downside risks were manageable, and that we had been using the share price weakness to increase our investment in this very high-quality business. Over the first half of 2025 healthcare policy has become clearer and is less negative for HCA than the market had feared. HCA’s share price has subsequently increased materially, and we have sold part of our investment, again to actively manage risk adjusted returns. HCA remains a top ten Fund holding at the end of the June 2025 quarter.”
1. Appian Corporation (NASDAQ:APPN)
Abdiel Capital Advisors’ Equity Stake: $293.2 million
Number of Hedge Fund Holders: 27
Appian Corporation (NASDAQ:APPN) is one of the 7 Best Stocks to Buy According to Abdiel Capital Advisors. On June 10, Raft, which is a leading defense tech company, announced a strategic partnership with Appian Corporation (NASDAQ:APPN), a leader in process orchestration. Together, both companies are delivering a contested logistics Cloud solution to the tactical edge in Indo-Pacific Command (INDOPACOM), which is a hotly contested global theater.
The partnership focuses on combining Raft’s real-time, edge-ready, autonomous data fusion with Appian Corporation (NASDAQ:APPN)’s secure, enterprise-grade process orchestration to cater to one of the military’s most urgent operational challenges, i.e., sustaining distributed forces throughout the vast Indo-Pacific. The Raft and Appian Corporation (NASDAQ:APPN) solution integrates fragmented supply chain and operational data into the unified ecosystem, resulting in faster, informed decision-making from the command center to the tactical edge.
In Q1 2025, Appian Corporation (NASDAQ:APPN) continued to demonstrate its earnings potential, with narrowing net losses, the 3rd straight quarter of positive adjusted EBITDA, and $45 million in operating cash flow. Appian Corporation (NASDAQ:APPN) rolled out a multi-tiered pricing model last year, enabling the company to monetize AI and other exclusive features. Since then, nearly half of its new logos have bought the AI-inclusive upper tiers.
While we acknowledge the potential of APPN 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 APPN and that has 100x upside potential, check out our report about this cheapest AI stock.
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