We recently published a list of Billionaire Ken Griffin’s 10 Midcap Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Block, Inc. (NYSE:XYZ) stands against Billionaire Ken Griffin’s other midcap stock picks with huge upside potential.
Ken Griffin, the founder of Citadel, is an influential albeit controversial figure in the investment industry. Ken Griffin tasted early success while trading during his college days, and it is safe to say that he has never looked back since. Despite huge setbacks during the financial crisis of 2008, he used his skills and determination to make a comeback where many others would have simply closed the fund and moved on.
The billionaire investor currently manages assets worth around $65 billion across his funds. Owing to its large size and track record of success, Ken Griffin’s stock moves often make it to the news and are closely followed by investors. We decided to do the same, focusing on Mid-cap stocks that still had the potential to turn into established giants tomorrow.
To come up with the list of billionaire Ken Griffin’s 10 midcap stock picks with huge upside potential, we looked at his latest 13F holdings and, among his significant holdings, only considered stocks between $10 billion and $40 billion in market cap. We then looked at the average analyst price target on Wall Street and ranked the stocks according to their upside potential.
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).
Ken Griffin of Citadel Investment Group
Block, Inc. (NYSE:XYZ)
Stock Upside Potential: 48.29%
Citadel Investment Group’s Stake: $368,584,632
Block, Inc. (NYSE:XYZ) operates as an ecosystem builder. It builds ecosystems focused on financial and commerce products. The company operates in the Cash App and Square segments. The stock has been declining since the start of this year, falling over 45%.
After the release of Block’s most recent quarter results, some analysts turned pessimistic. Piper Sandler analyst Arvind Ramnani believes an acceleration in the latter half may be overly optimistic because of pressured fundamentals. Wall Street’s analysts are also concerned about weaker Cash App spending.
However, Mizuho’s Dan Dolev maintained his Outperform rating on the stock, citing the firm’s improved network density and product innovation. He thinks XYZ’s robust product innovation and enhanced network density could mitigate the effects of a weaker macroeconomic environment.
Based on the guidance, the company expects gross profit growth of 12% for 2025. Adjusted operating income is anticipated to grow by 19%. Continuous GPV growth improvements are projected throughout the year. For Q2, Square’s GPV growth is projected to achieve high single digits.
Overall, XYZ ranks 3rd on our list of Billionaire Ken Griffin’s midcap stock picks with huge upside potential. While we acknowledge the potential of XYZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than XYZ but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
