Investors spent more of 2023 on their toes because of incessant rate hikes and uncertainty about the Federal Reserve’s future moves. But that sentiment shifted overnight when Jerome Powell on December 13 signaled that the Fed might be done with its rate-hike spree and initial discussions on possible rate cuts in 2024 are underway. As a result, markets are euphoric and bears are on run. What caused Federal Reserve to drastically shift its stance and categorically signal a dovish stance would be up for debates in the weeks to come, but for now investors are focusing on 2024 market outlook and estimates as they pile into stocks. Bloomberg’s latest Markets Live Pulse survey said that the S&P 500 would see record highs in 2024, though the survey respondents said the index’s gains would be lower than the 20% jump it saw in 2023.
Over two thirds of the total respondents in the Bloomberg survey said that they don’t expect hard landing next year and expect the Fed’s rate cuts to begin before July 2024.
Aneeka Gupta, director of macroeconomic research at WisdomTree, gave credit to “US exceptionalism” for the bullish outlook and compared the country’s situation to that of China and Europe which were not able to rebound strongly from the crisis.
Bloomberg said 43% respondents in its survey said they see US markets preforming much better than international markets in 2024. About 26% respondents of the survey said they plan to increase their holdings over the next month.
For this article we first listed down the most popular stocks on Robinhood. To find those stocks we used Robinhood's Investor Index tool and also used some third party tools and manual research to see which stocks retail investors love the most on the stock trading platform. From this dataset we picked 11 stocks with the highest number of billionaire investors. For that we used Insider Monkey's proprietery database of billionaire-owned stocks. Some notable names in the list include Meta Platforms Inc (NASDAQ:META), NVIDIA Corp (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN).
Despite growth concerns and challenges the entertainment giant is facing, Walt Disney Co (NYSE:DIS) remains one of the most popular stocks on Robinhood.
As of the end of the third quarter of 2023, 17 billionaires in Insider Monkey’s database had stakes in Walt Disney Co (NYSE:DIS). Some notable billionaires with Walt Disney Co (NYSE:DIS) stakes include Nelson Peltz, Ken Fisher and Israel Englander. It’s important to note that Peltz is getting ready to launch a proxy fight at Walt Disney Co (NYSE:DIS) to get board representation. He owns a $2.6 billion stake in Walt Disney Co (NYSE:DIS).
Madison Sustainable Equity Fund made the following comment about The Walt Disney Company (NYSE:DIS) in its Q3 2023 investor letter:
“During the quarter, we sold our positions in Bristol-Myers Squibb and The Walt Disney Company (NYSE:DIS). The Walt Disney Company is facing a difficult and uncertain transition in its core media business assets including the ESPN business and other linear media assets. These media assets are cash generative but face secular decline as consumers are cutting their expensive cable subscriptions and moving to alternative streaming options. This has resulted in a decline in operating profits for the media division. The media business has long-term fixed costs related to its sports broadcasting agreement with multiple sports leagues which will further pressure profits during this transition.”
Number of Billionaire Investors: 18
Tesla Inc (NASDAQ:TSLA) is one of the most divisive yet popular stocks in the Street. While some analysts and famous investors keep shorting the stock, others believe Tesla Inc (NASDAQ:TSLA) will only go up from here. Tesla Inc (NASDAQ:TSLA) shares were among the winners in 2023, having gained about 119% year to date through December 13. Michael Kantrowitz, chief investment strategist at Piper Sandler, recently said that the Magnificent Seven group of stocks, which includes Tesla Inc (NASDAQ:TSLA), is expected to keep gaining in 2024. Other key members of the Magnificent Seven group include Meta Platforms Inc (NASDAQ:META), NVIDIA Corp (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN).
A total of 18 billionaires in Insider Monkey’s database were long Tesla Inc (NASDAQ:TSLA) as of the end of the third quarter of 2023. Some notable billionaires with stakes in the EV giant include DE Shaw and Cliff Asness.
Here is what White Brook Capital has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Tesla, Inc. (NASDAQ:TSLA), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”
Number of Billionaire Investors: 18
Walmart Inc (NYSE:WMT) ranks 9th in our list of the best Robinhood stocks according to billionaires. Insider Monkey’s database of billionaires shows that 18 billionaires had stakes in the retail giant as of the end of September.
Recently, TD Cowen's retail equity research team named Walmart Inc (NYSE:WMT) one of its best ideas for 2024. The firm likes Walmart Inc’s (NYSE:WMT) leadership position in the retail sector as well as its investments in Walmart+ and digital ads. TD Cowen set a whopping $188 price target on Walmart Inc (NYSE:WMT). The stock was trading at around $152 as of December 14.
Number of Billionaire Investors: 19
Apple Inc (NASDAQ:AAPL) ranks 8th in our list of the best Robinhood stocks according to billionaires.
A total of 19 billionaires in Insider Monkey’s database of money managers had stakes in the iPhone maker. Some notable billionaires with stakes in Apple Inc (NASDAQ:AAPL) include Warren Buffett, Ken Fisher, D. E. Shaw and Cliff Asness.
Hayden Capital made the following comment about Apple Inc. (NASDAQ:AAPL) in its third 2023 investor letter:
“Even Berkshire Hathaway’s most famous investment of the last decade – Apple Inc. (NASDAQ:AAPL) – was based on a similar set up. When Berkshire invested in 2016, Apple’s subscription revenues were just starting to cross ~10% of total revenues. Today, that figure is ~25%.
Number of Billionaire Investors: 20
Netflix Inc (NASDAQ:NFLX) is one of the stocks popular among retail investors on Robinhood as well as billionaires.
Goldman Sachs recently issued a list of stocks poised to benefit in 2024. Netflix Inc (NASDAQ:NFLX) made it to the list as Goldman sees new trends in content creation and distribution in the year.
A total of 20 billionaires in Insider Monkey’s database had stakes in Netflix Inc (NASDAQ:NFLX).
Like Netflix, Meta Platforms Inc (NASDAQ:META), NVIDIA Corp (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN) also remained in the spotlight in 2023.
Carillon Clarivest Capital Appreciation Fund made the following comment about Netflix, Inc. (NASDAQ:NFLX) in its Q3 2023 investor letter:
“During the third quarter of 2023, an underweight to real estate and an overweight to healthcare helped performance, while an overweight to information technology and an underweight to energy detracted. Stock selection was strong within information technology and consumer staples but was weak within financials and communication services. Netflix, Inc. (NASDAQ:NFLX), the internet streaming subscription service company, missed expectations. That suggested the company’s crackdown on pass-word sharing has yet to deliver the sales growth analysts expect.”
Number of Billionaire Investors: 22
Despite growth concerns and share price losses in 2023, Alibaba Group Holding Ltd - ADR (NYSE:BABA) remains on the radar of billionaires on the back of hopes that the Chinese ecommerce giant might one day be able to gain back its glory days.
Among the billionaires tracked by Insider Monkey, 22 had stakes in Alibaba Group Holding Ltd - ADR (NYSE:BABA) as of the end of the September quarter. Some notable billionaires with stakes in Alibaba Group Holding Ltd - ADR (NYSE:BABA) include Ken Fisher, David Tepper, Chinese billionaire Lei Zhang and Israel Englander.
L1 Long Short Fund made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its second quarter 2023 investor letter:
“Alibaba Group Holding Limited (NYSE:BABA) (Long -18%) shares weakened in recent months as Chinese reopening strength faded and macro-economic datapoints began sequentially declining. Nevertheless, we believe the Chinese government will use consumption as a key lever to reinvigorate the economy post-COVID lockdowns. Alibaba remains a high-quality business with leading positions in both eCommerce and Public Cloud, and management is taking proactive steps to unlock shareholder value. It has announced plans to split into six major business groups – Cloud Intelligence, Taobao Tmall, Local Services, Global Digital, Cainiao Smart Logistics and Digital Media, and Entertainment Group. Each group will be managed independently, with a separate CEO and board, have the flexibility to raise external capital and potentially pursue separate IPOs. We believe this restructure will be a strong positive catalyst to unlock the sum-of-the-parts valuation upside in the company.”
Click to continue reading and see the 5 Best Robinhood Stocks According to Billionaires.
Suggested Articles:
Disclosure. None. 11 Best Robinhood Stocks According to Billionaires was initially published on Insider Monkey.
