Billionaires Are Crazy About These 5 Stocks

In this article, we discuss 5 stocks that billionaires love. If you want to see more stocks in this selection, check out Billionaires Are Crazy About These 10 Stocks. 

5. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 136

Number of Billionaire Investors: 26

Salesforce, Inc. (NYSE:CRM) is a global provider of customer relationship management (CRM) technology. The company’s services encompass a range of capabilities such as storing and managing sales data, tracking leads and progress, predicting potential opportunities, utilizing analytics and relationship intelligence for insights, and facilitating the creation and delivery of quotes, contracts, and invoices. It is one of the stocks that billionaires are crazy about. 

On May 31, Salesforce, Inc. (NYSE:CRM) reported a Q1 non-GAAP EPS of $1.69 and a revenue of $8.25 billion, topping Wall Street estimates by $0.08 and $80 million, respectively. During the first quarter, Salesforce, Inc. (NYSE:CRM)’s shareholders received a total of $2.1 billion through share repurchases.

According to Insider Monkey’s first quarter database, 136 hedge funds were bullish on Salesforce, Inc. (NYSE:CRM), compared to 117 funds in the last quarter. Billionaire Thomas Steyer’s Farallon Capital is a prominent stakeholder of the company, with a position worth $700 million.

Vulcan Value Partners made the following comment about Salesforce, Inc. (NYSE:CRM) in its Q1 2023 investor letter:

“Salesforce, Inc. (NYSE:CRM) was a material contributor during the quarter. The company has taken numerous positive steps to increase profitability more quickly than expected. Salesforce also improved its corporate governance by recommending three new board members. The company is focused on improving margins, deemphasizing acquisitions, and has expanded its stock buyback plan from $10 billion to $20 billion. We believe Salesforce can pursue these opportunities while continuing to increase its competitive position.”

4. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 220

Number of Billionaire Investors: 26

Billionaire investors are actively piling into Meta Platforms, Inc. (NASDAQ:META). On April 26, the company reported a Q1 GAAP EPS of $2.20 and a revenue of $28.65 billion, outperforming Wall Street estimates by $0.23 and $990 million, respectively. Meta Platforms, Inc. (NASDAQ:META) anticipates that its total revenue for the second quarter of 2023 will fall within the range of $29.5 billion to $32 billion, compared to the consensus estimate of $29.47 billion.

On May 23, after conducting a thorough analysis of Meta Platforms, Inc. (NASDAQ:META)’s artificial intelligence capabilities, Piper Sandler analyst Thomas Champion reaffirmed an Overweight rating on the shares with a price target of $270. The analyst expressed a more positive outlook on Meta Platforms, Inc. (NASDAQ:META)’s position in the digital advertising and AI sectors. Piper Sandler continues to regard Meta Platforms, Inc. (NASDAQ:META) as its top choice in the digital advertising domain.

According to Insider Monkey’s first quarter database, 220 hedge funds were long Meta Platforms, Inc. (NASDAQ:META), compared to 194 funds in the earlier quarter. Billionaire Philippe Laffont’s Coatue Management is a significant position holder in the company, with 8 million shares worth $1.70 billion. 

Artisan Value Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q1 2023 investor letter:

“Our top contributors in Q1 were Meta Platforms, Inc. (NASDAQ:META), Warner Bros Discovery (WBD) and FedEx. Following sharp declines in 2022, shares of Meta Platforms have more than doubled since their early November 2022 lows. Last year’s drawdown created a highly favorable risk-reward, which we took advantage of by adding to our position. Management has wisely, in our view, recalibrated its spending plans to focus on profitability amid a weaker advertising environment, increased TikTok competition and Apple’s privacy changes. While investors got ahead of themselves back in 2021, extrapolating pandemic growth rates into the future, Meta is still a highly successful enterprise generating over $120 billion of revenue annually on a run-rate basis and has more than $40 billion in cash on its balance sheet to help it navigate its future course. Recent usage and engagement trends for Facebook and Instagram have been positive, and Reels—Meta’s answer to TikTok—is gaining traction.”

3. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 243

Number of Billionaire Investors: 31

Amazon.com, Inc. (NASDAQ:AMZN) is another stock that is popular among billionaires. On April 27, Amazon.com, Inc. (NASDAQ:AMZN) reported a Q1 GAAP EPS of $0.31 and a revenue of $127.4 billion, exceeding Wall Street estimates by $0.11 and $2.85 billion, respectively. The company forecasts that net sales for the upcoming quarter will range from $127.0 billion to $133.0 billion, compared to the consensus estimate of $130.34 billion. This indicates a projected growth rate of 5% to 10% compared to the second quarter of 2022.

On May 23, Mizuho raised the firm’s price target on Amazon.com, Inc. (NASDAQ:AMZN) to $160 from $145 and kept a Buy rating on the shares. The firm also considers Amazon.com, Inc. (NASDAQ:AMZN) as one of the top choices for the second half of 2023. Mizuho expects that concerns about Amazon.com, Inc. (NASDAQ:AMZN)’s position in the artificial intelligence market will diminish, leading to multiple expansion. 

According to Insider Monkey’s first quarter database, 243 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN), compared to 240 funds in the last quarter. Billionaire Warren Buffett’s Berkshire Hathaway is a significant position holder in the company, with 10.5 million shares worth over $1 billion. 

Arch Capital made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2023 investor letter:

“Replacing our Wix investment is Amazon.com, Inc. (NASDAQ:AMZN), a company we are sure you have heard of before. We believe the company’s long-term growth runway, profit potential, and competitive advantages were being vastly underrated in early January when its market cap was well below $1 trillion. We think early January was one of those rare times you could buy a special business like Amazon at a discounted valuation. Our hope is that – if we are right about its competitive advantages in retail and cloud computing – our Amazon stake will end up being a permanent holding in the limited partnership.”

2. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 204

Number of Billionaire Investors: 32

Alphabet Inc. (NASDAQ:GOOGL) is one of the top stocks on the radar of billionaire investors. In the first quarter of 2023, Insider Monkey tracked 32 billionaire portfolios with Alphabet Inc. (NASDAQ:GOOGL) stakes. 

According to BofA analyst Justin Post maintained a Buy rating Alphabet Inc. (NASDAQ:GOOGL) with a price target of $128, noting that the integration of Bing into ChatGPT is seen as a potential threat to Google’s data advantage. However, BofA maintains that Google still possesses three key advantages – data, distribution, and AI-driven advertising technology. The firm also highlighted that Google recently unveiled AI tools at its “Marketing Live” event, enabling advertisers to generate unique text or display ads in real time. 

According to Insider Monkey’s first quarter database, 204 hedge funds were long Alphabet Inc. (NASDAQ:GOOGL), compared to 209 funds in the prior quarter. Billionaire Chris Hohn’s TCI Fund Management is a significant position holder in the company, with a stake worth $2.4 billion.

Diamond Hill Large Cap Strategy made the following comment about Alphabet Inc. (NASDAQ:GOOGL) in its Q1 2023 investor letter:

“We did have several strong performing stocks this quarter. Our top contributors to return included NVR, Amazon, Alphabet Inc. (NASDAQ:GOOG), Microsoft and Booking Holdings, all of which posted double-digit gains. Shares of media and technology giant Alphabet outperformed as the company announced expense discipline while continuing to invest in its core products of Google Search, YouTube and Google Cloud.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 289

Number of Billionaire Investors: 33

Microsoft Corporation (NASDAQ:MSFT) is the most favored stock among billionaires. In Q1 2023, Insider Monkey tracked 33 billionaire portfolios with positions in Microsoft Corporation (NASDAQ:MSFT). 

On May 30, Wedbush analyst Daniel Ives increased the price target for Microsoft Corporation (NASDAQ:MSFT) to $375 from $340 and maintained an Outperform rating on the stock. The analyst’s optimism towards Microsoft Corporation (NASDAQ:MSFT) stems from the robust flow of cloud deals and the potential for monetization in the field of artificial intelligence (AI), leading to a more bullish outlook on the company. Wedbush emphasizes that Microsoft Corporation (NASDAQ:MSFT) remains a strong contender on its Best Ideas List. 

According to Insider Monkey’s first quarter database, 289 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to 259 funds in the prior quarter. Billionaire Bill Gates’ Bill & Melinda Gates Foundation Trust is the largest stakeholder of the company, with 39.2 million shares worth $11.3 billion. 

Ariel Global Fund made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2023 investor letter:

“Enterprise software provider, Microsoft Corporation (NASDAQ:MSFT) also traded higher in the period alongside the investor enthusiasm for Artificial Intelligence. Microsoft is well positioned as this new technology advances given its large investment in Open AI, the parent company of ChatGPT. Looking ahead, we continue to like Microsoft’s solid fundamentals, competitive positioning and long-term business outlook. We anchor on the company driving value creation by capitalizing on a broad and deep set of opportunities, most notably within Azure, its hybrid cloud infrastructure. The platform continues to demonstrate share gains and strong multi-year purchase intent as enterprises transition to cloud based platforms. At current trading levels, we believe Microsoft’s risk/reward is skewed to the upside.”

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