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Top Founder-Run Company Stocks That Are Outperforming the Market
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An updated edition of the June 12, 2025, article.
Founders possess a unique ability to build and nurture a company from inception, much like a parent raising a child. They bring deep passion, unwavering vision and relentless dedication to their ventures. Unlike traditional managers, founders are often more willing to take bold risks, pursue unconventional ideas, and prioritize innovation to achieve long-term success. As a result, their companies often mirror their personal values, ideals and ambitions, becoming authentic extensions of their original vision.
Founder-run companies represent less than 5% of the S&P 500 index. But that does not make their contribution any less. Everyone is aware of the success stories of visionary founder-owners like Elon Musk, Warren Buffett, Steve Jobs, Jeff Bezos, Mark Zuckerberg and Bill Gates, who have redefined industries, creating trillion-dollar companies that continue to thrive. Some of today’s prominent founder-run companies are NVIDIA Corporation, Amazon, Meta (META - Free Report) , Tesla, Berkshire Hathaway and Netflix (NFLX - Free Report) . Founder-led companies represent nearly 15% of the total index’s market capitalization, with technology companies taking the lead.
As these companies are born out of a unique idea, they often involve technological innovation. These companies are built from scratch in a way that they can navigate challenges to stay sustainable over the long term.
Initially, others may not relate to a founder’s belief, making it difficult to source funds for the project. The founder often ends up putting personal wealth and savings into such bootstrap companies. If successful, they attract angel investors or raise funds. But it's always the founder-owner whose stake and risk are the highest.
Additionally, founder-owners often find it difficult to delegate responsibilities, triggered by doubts over whether others can match their dedication or grasp of the business. As a result, they frequently take on multiple senior roles and face challenges in identifying a suitable successor. However, excelling in every area is rarely realistic. This reluctance to hand over control can limit the introduction of professional expertise, potentially hindering the company’s ability to scale efficiently or adapt quickly to evolving market conditions.
Nevertheless, there is strong evidence that founder-led companies tend to perform better over time. Per a Harvard Business Review Study, founder-led companies had a market-adjusted return of 12% over three years against a return of negative 26% for companies that hired a professional CEO. Our Founder-Run Companies Screen further makes it easy to identify high-potential stocks. Currently, stocks like Netflix, Meta, DoorDash (DASH - Free Report) and Robinhood Markets (HOOD - Free Report) look appealing.
Ready to uncover more transformative thematic investment ideas? Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
4 Founder-Run Companies to Add to Your Portfolio
Meta, with a market capitalization of $1.8 trillion, is the world’s largest social media platform. It is considered to have pioneered the concept of social networking, which is why it enjoys a first-mover advantage in this market. Messenger and WhatsApp are extremely prized possessions of Meta.
Meta believes that AI tools will improve business messaging experience and customer support. Mark Zuckerberg, CEO of Meta, believes that “this is going to be the year when a highly intelligent and personalized AI assistant reaches more than 1 billion people, and I expect Meta AI to be that leading AI assistant.” Zuckerberg also expects to build an AI engineering agent that has the coding and problem-solving abilities of a good mid-level engineer.
Meta’s focus on developing a strong footprint in the metaverse will drive its prospects over the long term. Oculus is the result of the company’s ambitious mixed-reality efforts, built on a stack of AI technologies. The multi-year partnership with Ray-Ban-parent EssilorLuxottica is also noteworthy in terms of the development of augmented reality glasses. Meta plans to make huge investments in AI infrastructure over the long term. META currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Netflix, with a market capitalization of $502.7 billion, is considered a pioneer in the streaming space. The company evolved from a small DVD rental provider to a dominant streaming service provider, courtesy of its wide-ranging content portfolio and strong international footprint. Wilmot Reed Hastings Jr. co-founded Netflix with Marc Randolph in 1997 and is the executive chairman of the company.
Netflix has been spending aggressively on building its portfolio of original shows. This is helping the company sustain its leading position despite the launch of services like Disney+ and Apple TV+, as well as existing services like Amazon Prime Video. NFLX carries a Zacks Rank #1.
The company’s focus on streaming regional content has been leading to international growth. Netflix is diversifying its content portfolio and working on projects across India, Mexico, Spain, Italy, Germany, Brazil, France, Turkey and the entire Middle East. The company has launched low-priced mobile plans in India, Indonesia, Malaysia, the Philippines and Thailand. Moreover, the upcoming lower-priced ad tier is expected to further drive growth in these price-sensitive regions.
Netflix’s 2025 priorities include improvement of its core business with more series and films to offer an enhanced product experience, growth of its ads business, and newer initiatives such as live programming and games. It believes these initiatives will help it sustain healthy growth. It projects 2025 revenues between $43.5 billion and $44.5 billion and an operating margin of 29%.
Robinhood Markets, with a market capitalization of $92.5 billion, is a modern financial services platform. Vladimir Tenev co-founded Robinhood Markets with Baiju Bhatt in 2013 and is the CEO of the company.
To align with its goal of becoming an international player, the company has unveiled several products and services, including tokenized U.S. stock and exchange-traded fund (ETF) for European Union (EU) investors and an advanced desktop platform, Robinhood Legend, in the U.K., following its launch in the United States in October 2024.
Robinhood Markets now operates nine business lines, each generating over $100 million in annualized revenues, and is rapidly scaling additional ventures such as Robinhood Strategies, Robinhood Banking, and its recently announced Bitstamp acquisition. Robinhood aims to grow many of these emerging businesses into $100 million-plus revenue contributors in the coming years, reinforcing its strategy of building a diversified and scalable financial ecosystem. Robinhood Markets is broadening its revenue streams through initiatives like Robinhood Gold, retirement products, crypto trading and growing interest income.
Robinhood envisions becoming a global player and is thus expanding its presence beyond the Americas and Europe into the Asia-Pacific region. It sports a Zacks Rank #1.
DoorDash, with a market capitalization of $105.9 billion, aims to empower local economies by helping merchants better connect with consumers in their communities. Its primary offerings include the DoorDash Marketplace and the Wolt Marketplace and Commerce Platform. Tony Xu co-founded DoorDash with Andy Fang and Stanley Tang in 2013 and is the CEO of the company.
With a 56% market share, DoorDash is the largest food delivery platform in the United States. It also has a 60% market share in the convenience delivery category. To penetrate Europe, Asia and the Middle East, it is acquiring Deliveroo, while its SevenRooms will enhance merchant tech capabilities. DoorDash is benefiting from strong order growth and rising Marketplace GOV, along with enhanced logistics efficiency and a growing contribution from advertising. As its advertising now contributes meaningfully to margins, DoorDash inked an advanced partnership with The Trade Desk to enhance the platform’s ad targeting. By consistently improving its platform and incentivizing Dashers, DoorDash can meet the growing demand for on-demand deliveries. It carries a Zacks Rank #2 (Buy).
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Top Founder-Run Company Stocks That Are Outperforming the Market
An updated edition of the June 12, 2025, article.
Founders possess a unique ability to build and nurture a company from inception, much like a parent raising a child. They bring deep passion, unwavering vision and relentless dedication to their ventures. Unlike traditional managers, founders are often more willing to take bold risks, pursue unconventional ideas, and prioritize innovation to achieve long-term success. As a result, their companies often mirror their personal values, ideals and ambitions, becoming authentic extensions of their original vision.
Founder-run companies represent less than 5% of the S&P 500 index. But that does not make their contribution any less. Everyone is aware of the success stories of visionary founder-owners like Elon Musk, Warren Buffett, Steve Jobs, Jeff Bezos, Mark Zuckerberg and Bill Gates, who have redefined industries, creating trillion-dollar companies that continue to thrive. Some of today’s prominent founder-run companies are NVIDIA Corporation, Amazon, Meta (META - Free Report) , Tesla, Berkshire Hathaway and Netflix (NFLX - Free Report) . Founder-led companies represent nearly 15% of the total index’s market capitalization, with technology companies taking the lead.
As these companies are born out of a unique idea, they often involve technological innovation. These companies are built from scratch in a way that they can navigate challenges to stay sustainable over the long term.
Initially, others may not relate to a founder’s belief, making it difficult to source funds for the project. The founder often ends up putting personal wealth and savings into such bootstrap companies. If successful, they attract angel investors or raise funds. But it's always the founder-owner whose stake and risk are the highest.
Additionally, founder-owners often find it difficult to delegate responsibilities, triggered by doubts over whether others can match their dedication or grasp of the business. As a result, they frequently take on multiple senior roles and face challenges in identifying a suitable successor. However, excelling in every area is rarely realistic. This reluctance to hand over control can limit the introduction of professional expertise, potentially hindering the company’s ability to scale efficiently or adapt quickly to evolving market conditions.
Nevertheless, there is strong evidence that founder-led companies tend to perform better over time. Per a Harvard Business Review Study, founder-led companies had a market-adjusted return of 12% over three years against a return of negative 26% for companies that hired a professional CEO. Our Founder-Run Companies Screen further makes it easy to identify high-potential stocks. Currently, stocks like Netflix, Meta, DoorDash (DASH - Free Report) and Robinhood Markets (HOOD - Free Report) look appealing.
Ready to uncover more transformative thematic investment ideas? Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
4 Founder-Run Companies to Add to Your Portfolio
Meta, with a market capitalization of $1.8 trillion, is the world’s largest social media platform. It is considered to have pioneered the concept of social networking, which is why it enjoys a first-mover advantage in this market. Messenger and WhatsApp are extremely prized possessions of Meta.
Meta believes that AI tools will improve business messaging experience and customer support. Mark Zuckerberg, CEO of Meta, believes that “this is going to be the year when a highly intelligent and personalized AI assistant reaches more than 1 billion people, and I expect Meta AI to be that leading AI assistant.” Zuckerberg also expects to build an AI engineering agent that has the coding and problem-solving abilities of a good mid-level engineer.
Meta’s focus on developing a strong footprint in the metaverse will drive its prospects over the long term. Oculus is the result of the company’s ambitious mixed-reality efforts, built on a stack of AI technologies. The multi-year partnership with Ray-Ban-parent EssilorLuxottica is also noteworthy in terms of the development of augmented reality glasses. Meta plans to make huge investments in AI infrastructure over the long term. META currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Netflix, with a market capitalization of $502.7 billion, is considered a pioneer in the streaming space. The company evolved from a small DVD rental provider to a dominant streaming service provider, courtesy of its wide-ranging content portfolio and strong international footprint. Wilmot Reed Hastings Jr. co-founded Netflix with Marc Randolph in 1997 and is the executive chairman of the company.
Netflix has been spending aggressively on building its portfolio of original shows. This is helping the company sustain its leading position despite the launch of services like Disney+ and Apple TV+, as well as existing services like Amazon Prime Video. NFLX carries a Zacks Rank #1.
The company’s focus on streaming regional content has been leading to international growth. Netflix is diversifying its content portfolio and working on projects across India, Mexico, Spain, Italy, Germany, Brazil, France, Turkey and the entire Middle East. The company has launched low-priced mobile plans in India, Indonesia, Malaysia, the Philippines and Thailand. Moreover, the upcoming lower-priced ad tier is expected to further drive growth in these price-sensitive regions.
Netflix’s 2025 priorities include improvement of its core business with more series and films to offer an enhanced product experience, growth of its ads business, and newer initiatives such as live programming and games. It believes these initiatives will help it sustain healthy growth. It projects 2025 revenues between $43.5 billion and $44.5 billion and an operating margin of 29%.
Robinhood Markets, with a market capitalization of $92.5 billion, is a modern financial services platform. Vladimir Tenev co-founded Robinhood Markets with Baiju Bhatt in 2013 and is the CEO of the company.
To align with its goal of becoming an international player, the company has unveiled several products and services, including tokenized U.S. stock and exchange-traded fund (ETF) for European Union (EU) investors and an advanced desktop platform, Robinhood Legend, in the U.K., following its launch in the United States in October 2024.
Robinhood Markets now operates nine business lines, each generating over $100 million in annualized revenues, and is rapidly scaling additional ventures such as Robinhood Strategies, Robinhood Banking, and its recently announced Bitstamp acquisition. Robinhood aims to grow many of these emerging businesses into $100 million-plus revenue contributors in the coming years, reinforcing its strategy of building a diversified and scalable financial ecosystem. Robinhood Markets is broadening its revenue streams through initiatives like Robinhood Gold, retirement products, crypto trading and growing interest income.
Robinhood envisions becoming a global player and is thus expanding its presence beyond the Americas and Europe into the Asia-Pacific region. It sports a Zacks Rank #1.
DoorDash, with a market capitalization of $105.9 billion, aims to empower local economies by helping merchants better connect with consumers in their communities. Its primary offerings include the DoorDash Marketplace and the Wolt Marketplace and Commerce Platform. Tony Xu co-founded DoorDash with Andy Fang and Stanley Tang in 2013 and is the CEO of the company.
With a 56% market share, DoorDash is the largest food delivery platform in the United States. It also has a 60% market share in the convenience delivery category. To penetrate Europe, Asia and the Middle East, it is acquiring Deliveroo, while its SevenRooms will enhance merchant tech capabilities. DoorDash is benefiting from strong order growth and rising Marketplace GOV, along with enhanced logistics efficiency and a growing contribution from advertising. As its advertising now contributes meaningfully to margins, DoorDash inked an advanced partnership with The Trade Desk to enhance the platform’s ad targeting. By consistently improving its platform and incentivizing Dashers, DoorDash can meet the growing demand for on-demand deliveries. It carries a Zacks Rank #2 (Buy).