Tiger Global’s Tech Stock Picks Include Apple Inc. (AAPL)

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The hedge fund must really love search engines and Web portals: it initiated a position of 25 million shares in Yahoo! Inc. (NASDAQ:YHOO) between July and September, making that one of its five largest 13F holdings. Yahoo’s forward P/E multiple is 17, placing it about in line with Google and Yandex’s valuation. However, revenue was about flat last quarter versus a year earlier. Billionaire Dan Loeb’s Third Point had taken a large position in Yahoo during an activist campaign, and has actually been adding shares after it managed to oust the company’s CEO. Check out Dan Loeb’s stock picks.

Facebook Inc (NASDAQ:FB) was another tech stock pick as Tiger Global reported owning almost 12 million shares of the social network. See our previous coverage of Facebook news. Growth is even more necessary here than at Yandex: the forward P/E is 40, and even that assumes that the company will improve its bottom line over the next year. Short interest seems to have cooled, and is now at a fairly moderate 12% of the outstanding shares. We doubt that growth will be high enough going forward and so we would advise against buying the stock.

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