Stocks To Watch: Top Funds Bet Big On Amazon, Apple, 9 More Stocks


In IBD’s latest report on new buys by the best mutual funds, 11 stocks each attracted over $1 billion in investments in recent months. Amazon (AMZN) led the list, followed by Microsoft (MSFT), Apple (AAPL), Facebook (FB), Nvidia (NVDA) and Netflix (NFLX).




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In a sum worthy of one of just three stocks with a market capitalization above $1 trillion, 86 leading top money managers scooped up $4.3 billion worth of AMZN stock. The amounts invested are based on holdings recorded in the latest quarterly reports by mutual funds with the best IBD 36-month performance ratings.

Microsoft and Apple are the other two trillion-dollar companies. The best mutual funds also placed large bets on both MSFT stock (an estimated $3.4 billion from 55 top funds) and AAPL ($2.4 billion, 44 funds). Google parent Alphabet (GOOGL), which is just shy of a $1 trillion market cap, took in approximately $1.3 billion from 43 leading funds.

NVDA stock and fellow FANG stocks FB and NFLX also made the list.

Several leading stocks, including Advanced Micro Devices (AMD) and IBD Long-Term Leaders Adobe (ADBE) and ServiceNow (NOW), also made the cut, but came just shy of getting $1 billion in investments.

Note: Be sure to check these Excel files to see all the stocks on the latest list of new buys and list of new sells by the best mutual funds.

Funds Find Haven In Large Caps And Long-Term Leaders

It’s worth noting that several stocks on the IBD Big Cap 20 and IBD Long-Term Leaders are also on the latest list of new buys by the best mutual funds.

Adobe, ServiceNow and Domino’s Pizza (DPZ) are all on both lists. Veeva Systems (VEEV) is on the IBD Big Cap 20 and the watchlist for IBD Long-Term Leaders.

Artificial intelligence and self-driving car technology pioneer Nvidia joins leading IPO stocks DocuSign (DOCU), Zoom Video Communications (ZM) on IBD’s list of top large-cap stocks.

In a volatile world still in the midst of the coronavirus pandemic and widespread protests, institutional investors are looking for large caps and well-established companies with a history of stable earnings growth to help weather the storm.

Best Mutual Funds Buy Into Leading IPO Stocks

Top money managers also showed demand for newer IPO stocks, such as DocuSign, Zoom and Grocery Outlet (GO). In addition to being on the IBD Big Cap 20, DOCU stock and ZM stock are also on the IPO Leaders screen.

Grocery Outlet, which is a discount retailer operating over 350 stores in six states, reported 227% EPS growth last quarter. DocuSign and Zoom also delivered triple-digit earnings increases.

Follow Matthew Galgani on Twitter at @IBD_MGalgani.

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