3 Growth Stocks Billionaires Are Buying From Left To Right

Are you a successful investor already managing a portfolio worth billions for yourself and others? If not, then you can probably learn a lot by following a handful of people who say yes.

Fortunately for everyday investors like us, keeping track of billionaire investors is much easier than you might think. The US Securities and Exchange Commission requires institutional investors to report their trading activity every three months on Form 13-F, and the latest round of disclosures brought some revelations.

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Billionaires have been buying these three stocks left and right. Here’s why they find them so attractive.

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Ken Griffin and Citadel Advisors have acquired more than 1.7 million shares of the e-commerce software giant. buy (TRADE 0.14%) during the second trimester. Griffin is likely encouraged by second-quarter gross merchandise volume (GMV) which increased 17% year-over-year to $55 billion.

It was even more encouraging to see second quarter revenues growing much faster than GMV or 31% year-over-year thanks to strong demand for its subscription and payment services.

Shopify merchants traditionally market to consumers, but business-to-business (B2B) sales in the second quarter soared 61% more year-over-year. Investors were also delighted to see their POS investments pay off. Offline GMV increased 23% year-over-year.

Well-executed B2B and POS programs could give Shopify a big boost, but the stock market has already priced in plenty of gains in the stock. It is currently trading at 11.2 times final sales or more than 100 times earnings expectations. Any sign of slowing down could result in a swift and severe beating. If you’re a risk-tolerant investor willing to hang in there for the long haul, buying stocks now might be a smart move.

archer aviation

Earlier this month, innovation investing guru Cathie Wood and the Ark Innovation ETF she manages for Ark Invest acquired millions of archer aviation (ACHR -11.89%) share. This company is rapidly developing small electric vertical takeoff and landing (eVTOL) aircraft.

Archer eVTOLs could start ferrying people through a city near you sooner than you probably imagine. Of course, when exactly is still up for debate. Archer shares and shares hers as Joby Aviation It recently came crashing down after the Federal Aviation Administration (FAA) released a report suggesting that air taxis won’t start entering national airspace until 2028.

When the FAA finally gets ready for air taxis, there’s a good chance Archer’s Midnite plane will be one of the first to see a lot of action. Management recently cleared it to begin flight test operations.

We do not know when Archer Aviation will be able to post regular air taxi sales, making the stock very risky. Despite the uncertainty, the company has a market capitalization of $1.7 billion right now. If you are going to invest in this stock, make sure it is a very small part of a diverse portfolio.

Uber Technologies

In the second quarter, James Simons and Renaissance Technologies purchased more than 5.7 million shares of Uber Technologies (UBER -1.61%) stock. A second-quarter operating profit and a growing presence in the global trucking industry should make them feel pretty good about their buying decisions.

Uber held second-quarter operating expenses flat. Combined with growing mobility revenue, the company was able to turn a $713 million operating loss in the prior-year period into a $326 million profit.

Transportation revenue fell to $1.3 billion and Uber blamed it on a challenging market cycle. The recent drop is disappointing, but it’s still 267% more transportation revenue than the company reported two years earlier. The global trucking industry is worth an estimated $4 trillion a year, meaning it could be a huge source of growth for years to come.

Right now, Uber is trading at a high multiple of 35 times future earnings expectations, even though it is just beginning to turn in operating profit. While it has what it takes to outperform the market, the stock could take a hit if its bottom line dips into negative territory again. If you’re going to follow Simons in this stock, be sure to make it a small part of a diversified portfolio.