10 Tech Stocks to Buy Now According to Late Michael Price’s MFP Investors

In this article, we’ll discuss the investment philosophy and portfolio management strategy of legendary value investor Michael Price, who died on March 15, at the age of 70. In addition, we will review 10 tech stocks to buy now according to late Michael Price’s MFP Investors. You can skip our detailed discussion of Michael Price’s investment philosophy and portfolio management strategy and jump directly to the 5 Tech Stocks to Buy Now According to Late Michael Price’s MFP Investors.

Michael F. Price was one of the greatest value investors of all time. The late billionaire’s stock-picking strategy involved buying stocks only when they trade at least 25% below their fair value. He believed in buying stocks of troubled companies that start missing earnings estimates and facing a drop in price targets. Price explained his mantra by saying, “Which pond would you prefer to fish in, one with a lot of fishermen or only a few?”

Seth Klarman, the founder of Baupost Group, said his mentor Price, whom he worked with after graduating from college at Heine Securities, taught him how to buy undervalued assets. He described him as intelligent and quick. After earning a B.A. from the University of Oklahoma, Price started working with Max Heine at Mutual Series in 1974. In 1982, he became a full partner and became the president and chairman after Heine died in 1988. In 1996, he merged Mutual Series with Franklin Templeton Investments and left the investment firm in 2001 to begin MFP Investors.

As of the end of December, Michael Price’s MFP Investors had $903 million in 13F securities in its portfolio. The firm’s top 10 tech stock picks include Qualcomm Incorporated (NASDAQ:QCOM), Viasat, Inc. (NASDAQ:VSAT), Palantir Technologies Inc. (NYSE:PLTR), Meta Platforms, Inc. (NASDAQ:FB), and Turtle Beach Corporation (NYSE:HEAR).

Intel Corporation (NASDAQ:INTC) and Twitter, Inc. (NYSE:TWTR) are also among the 10 tech stocks to buy now according to late Michael Price’s MFP Investors. His firm lifted its stake in Twitter, Inc. (NYSE:TWTR) during the December quarter when its shares were under pressure. On the other hand, Intel Corporation (NASDAQ:INTC) was MFP Investors’ largest and longest-running stock holding as of December. Despite underperformance in the past few years, shares of Intel Corporation (NASDAQ:INTC) are likely to receive support from its strategy of investing $90 billion in the European chip market.

Our Methodology

For this analysis, we made use of MFP Investors’ 13F filings for the fourth quarter of 2021.

10. Qualcomm Incorporated (NASDAQ:QCOM)

MFP Investors’ stake value: $134000

Percentage of MFP Investors’ portfolio: 0.01%

Number of hedge fund holders: 76

MFP Investors’ held a small stake in Qualcomm Incorporated (NASDAQ:QCOM). It is a member of MFP Investors’ portfolio over the past 10 quarters. It is also one of the largest and most prominent semiconductor companies. Shares of Qualcomm Incorporated (NASDAQ:QCOM) appreciated close to 160% in the past five years amid robust demand for chips. However, the company’s stock price experienced volatility in the past few months due to the slowing growth in its chip business. In the fourth quarter, Qualcomm Incorporated (NASDAQ:QCOM) generated 35% revenue growth from its chip business, down from 63% growth in the same period last year. 

Qualcomm Incorporated (NASDAQ:QCOM) expects between $10.2 billion and $11 billion in sales in the upcoming quarter, ahead of analyst estimates of $9.6 billion. Elite funds have lifted their bullish positions in the company recently. As of December, Qualcomm Incorporated (NASDAQ:QCOM) was in 76 hedge fund portfolios, up from 71 positions in the previous quarter. 

In the fourth quarter investor letter, ClearBridge Investments, an investment management firm, mentioned a few stocks including Qualcomm Incorporated (NASDAQ:QCOM). Here is what the firm stated about Qualcomm Incorporated (NASDAQ:QCOM):

“Market strength continued in the fourth quarter, with only the communication services sector down in the Russell 1000 Value Index. Portfolio returns benefited from the strong performance of semiconductor maker Qualcomm, which has executed exceptionally well in pursuing the transition to 5G, growing both content and share due to its leadership position in cellular technology. The chipmaker recently outlined a number of peripheral growth opportunities outside of mobile markets, including automotive (where it hopes to leverage its strong presence in the automotive infotainment space into advanced driver assistance systems), Internet of Things (including opportunities in the PC market, VR/AR market, and factory automation) and radio frequency (where mmWave adoption globally, including China, would drive substantial upside).” 

9. Viasat, Inc. (NASDAQ:VSAT)

MFP Investors’ stake value: $1.64 million

Percentage of MFP Investors’ portfolio: 0.18%

Number of hedge fund holders: 21

MFP first initiated a position in Viasat, Inc. (NASDAQ:VSAT) early in 2020 when its stock was under pressure. Moreover, the hedge fund added to its existing stake in the September quarter of 2021. Viasat, Inc. (NASDAQ:VSAT) is a small-cap American communication company. After gaining upside momentum in 2021, shares of Viasat, Inc. (NASDAQ:VSAT) experienced a selloff in 2022. The selloff in Viasat, Inc. (NASDAQ:VSAT) stock price was the reaction to larger than expected losses in the December quarter. Viasat, Inc. (NASDAQ:VSAT) posted a quarterly loss of $0.09 per share compared to the consensus estimate for a loss of $0.02 per share. On the positive side, Viasat, Inc. (NASDAQ:VSAT) grew its revenues by 25% from the previous year’s quarter.

Out of 924 lite funds tracked by Insider Monkey, Viasat, Inc. (NASDAQ:VSAT) was in 21 hedge fund portfolios. Seth Klarman’s Baupost Group was the leading stakeholder in Viasat, Inc. (NASDAQ:VSAT) as of December. 

8. Palantir Technologies Inc. (NYSE:PLTR)

MFP Investors’ stake value: $506000

Percentage of MFP Investors’ portfolio: 0.05%

Number of hedge fund holders: 33

MFP Investors has been holding a stake in Palantir Technologies Inc. (NYSE:PLTR) since it went public in 2020. Palantir Technologies Inc. (NYSE:PLTR) is a data analytics software company. Shares of Palantir Technologies Inc. (NYSE:PLTR) has been under pressure over the past two quarters due to investors’ move toward value stocks along with the prospects for slower growth in 2022. Palantir Technologies Inc. (NYSE:PLTR), also known for its work with government agencies, posted a loss of $156 million for the fourth quarter of 2021. Despite wider than expected loss, Palantir Technologies Inc. (NYSE:PLTR) continues to expect annual revenue growth of 30% or more through 2025. 

Unlike Intel Corporation (NASDAQ:INTC) and Twitter, Inc. (NYSE:TWTR), Palantir Technologies Inc. (NYSE:PLTR) is less popular among hedge funds.  As of December, Palantir Technologies Inc. (NYSE:PLTR) was in 33 hedge funds’ portfolios compared to 37 positions in the previous quarter.  

In the fourth quarter investor letter, Tao Value, an investment management firm, mentioned a few stocks including Palantir Technologies Inc. (NYSE:PLTR). Here is what the investment firm stated about Palantir Technologies Inc. (NYSE:PLTR):

“We have no new position this quarter and have made the below changes to our portfolio. We also sold Palantir (PLTR) as I identified it subject to high retail bubble risk (using above method) and are not part of our core “Mindful Compounder” holdings.”

7. Turtle Beach Corporation (NYSE:HEAR)

MFP Investors’ stake value: $2.8 million

Percentage of MFP Investors’ portfolio: 0.31%

Number of hedge fund holders: 18

MFP Investors initiated a position in Turtle Beach Corporation (NYSE:HEAR) during the September quarter of 2021 and lifted its stake by 25% in the following quarter. The shares of Turtle Beach Corporation (NYSE:HEAR) are down more than 30% in the past six months. The selloff is blamed on the end of COVID restrictions. Slowing revenue growth is among the concerns for investors. Turtle Beach Corporation (NYSE:HEAR) posted net revenue of $366.4 million in 2021, compared to $360.1 million in the previous year.

The median 12-month price target for Turtle Beach Corporation (NYSE:HEAR) is $31, with a high estimate of $34 and a low estimate of $24. Shares of Turtle Beach Corporation (NYSE:HEAR) are currently trading around $20, down from a 52-week high of $38.

6. Meta Platforms, Inc. (NASDAQ:FB)

 

MFP Investors’ stake value: $3.4 million

Percentage of MFP Investors’ portfolio: 0.38%

Number of hedge fund holders: 230

Like Intel Corporation (NASDAQ:INTC) and Twitter, Inc. (NYSE:TWTR), Meta Platforms, Inc. (NASDAQ:FB) is also among the 10 tech stocks to buy now according to late Michael Price’s MFP Investors. The firm has been holding a stake in Meta Platforms, Inc. (NASDAQ:FB) since 2019. The stock price of Meta Platforms, Inc. (NASDAQ:FB) lost substantial value in the past two quarters due to various factors including regulatory policies and slowing user growth. 

In the fourth quarter investor letter, Boyar Value Group, an investment management firm, mentioned a few stocks including Meta Platforms, Inc. (NASDAQ:FB). Here is what Boyar Value Group stated about Meta Platforms, Inc. (NASDAQ:FB):

“Corporate executives can have many different reasons for selling shares (anticipation of tax law changes, philanthropy, diversification, and much more), but the sheer number of billionaire founders who sold shares in 2021 should raise eyebrows and might well be signaling a market top. Bloomberg’s Ben Steverman and Scott Carpenter report not only that Mark Zuckerberg of Meta Platforms Inc. (formerly known as Facebook) sold shares in his company almost every day last year but also that the founders of Google sold ~$3.5 billion worth of stock (the first time either Sergey Brin or Larry Page has sold shares since 2017).”