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Successful stock trading is a skill that many of the world’s top fund managers have honed for decades. That’s why following the public records of stock transactions by major investment firms and successful traders can give you great ideas on how to build your portfolio. After all, nothing succeeds like success, right? Keep reading to discover three stocks that some of the world’s biggest billionaire fund managers are backing for a big 2025.
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Amazon’s online retail and e-commerce platform is one of the largest in the world. Yet CEO Jeff Bezos has done an equally effective job expanding his company’s footprint into other business sectors. Public documents show that Amazon’s bread and butter business (e-commerce) accounts for almost 40% of sales. Still, advertising industry analysts are excited about Amazon’s future.
According to Amazon’s Q3 2024 earnings report, the company generated $158.9 billion in revenue. That was an increase of 11% from the previous year, but advertising revenue was particularly strong. Amazon generated $14.3 billion in ad revenue, surpassing Q3 2023 figures by nearly 20%. That helped Amazon increase its free cash flow 128% to $46.1 billion.
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More importantly, there is every expectation that Amazon will continue to increase revenue from non-retail services (with higher profit margins) such as advertising and cloud computing. Amazon shares are trading at $226.09, but the consensus among analysts at Benzinga expects Amazon to reach $239.08 by early 2025. This could help explain why heavyweights like Ken Griffin and Ray Dalio have jumped on Amazon.
Mark Zuckerberg’s Meta (formerly known as Facebook) has been ubiquitous on the Internet for most of the century. Like Amazon, Meta’s Q3 2024 earnings show that the company has successfully leveraged its global customer base to generate significant advertising revenue. The Meta family of apps (Facebook, WhatsApp and Instagram) generated $39 billion in revenue, surpassing 2023 figures by 19%.
Meta also reported that it has leveraged the power of AI to increase customer engagement on Facebook by 8% and on Instagram by 6%. As Meta refines AI and other aspects of its operation, it is highly likely that advertising revenue will continue to grow through 2025 and beyond. No wonder Stephen Mandel’s Lone Pine Capital has increased its stake in Meta by 36% this year, Kiplinger’s reports.
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Philip Morris produces some of the world’s most recognizable tobacco brands, including Marlboro, Chesterfield and Virginia Slims. The company’s global customer base has become one of those rare stocks that offer growth and passive income potential. Philip Morris opened trading in 2024 in the $95 range and climbed steadily to $128.71 (see the stock ticker link above).
Shareholders also earned an estimated 4.17% dividend of $5.36 per share on the tobacco giant. It’s also important to note that Philip Morris doesn’t rely solely on its traditional tobacco business. The company’s Zyn nicotine pouches have shown huge sales potential and could attract a new generation of tobacco lovers. No wonder this stock is another of Ken Griffin’s favorites.
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Arrivald allows individuals to invest in rental property shares for as little as $100, providing the opportunity for monthly rental income and long-term appreciation without the hassle of a landlord. With more than $1 million in dividends paid last quarter and a growing portfolio of properties across markets, Arrivald offers an attractive alternative for investors looking to build a diversified real estate portfolio.
In October 2024, Arrivald sold The Centennial and achieved a total return of 34.7% (11.2% average annual return) for investors. Arrivald’s goal is to continue to deliver comparable value across our portfolio through careful market selection, attentive property management and thoughtful timing of sales.
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This article Billionaire Investors Like Ken Griffin and Ray Dalio Are Going All-In On These 3 Stocks Because They Like The Upside originally appeared on Benzinga.com
