In this article, we discuss 10 tech stocks to buy now according to Robert Pitts’ Steadfast Capital.
Robert Pitts spent several years at Tiger Management before founding the New York-based hedge fund Steadfast Capital in 1997. The hedge fund began accepting outside investors in 1998. Steadfast Capital advises the funds on discretionary investments and has extensive and flexible investment jurisdiction. Robert Pitts’ Steadfast Capital 13F public stock portfolio was valued at $6 billion in the fourth quarter of 2021, mainly investing in the consumer discretionary, energy, finance, information technology, utility and telecommunications, and communications sectors.
Robert Pitts likes to diversify his portfolio. His hedge fund invests in small and large businesses with strong possibilities for future growth. Some of these companies include Microsoft Corporation (NASDAQ:MSFT), Fidelity National Information Services, Inc. (NYSE:FIS) and Block, Inc. (NYSE:SQ).
Steadfast Capital owns 1.11 million shares of the tech giant Microsoft Corporation (NASDAQ:MSFT). On April 1, Microsoft Corporation (NASDAQ:MSFT) purchased Minit, a process mining technology provider based in Bratislava, Slovakia, for an undisclosed sum.
Another technology stock in Steadfast Capital’s portfolio is Fidelity National Information Services, Inc. (NYSE:FIS). On April 5, Fidelity National Information Services, Inc. (NYSE:FIS) was assigned an Overweight rating by Stephens analyst Charles Nabhan and a $125 price target.
Robert Pitts’ Steadfast Capital also has a significant holding in Block, Inc. (NYSE:SQ). On April 5, Stephens analyst Charles Nabhan initiated coverage of Block, Inc. (NYSE:SQ), giving the stock an Overweight rating with a price objective of $170.
Taina Sohlman / Shutterstock.com
Our Methodology
With this context in mind, here is our list of the 10 tech stocks to buy now according to Robert Pitts’ Steadfast Capital. The tech stocks were chosen from Pitts’ fourth-quarter regulatory filings.
Tech Stocks to Buy Now According to Robert Pitts’ Steadfast Capital
10. StoneCo Ltd. (NASDAQ:STNE)
Steadfast Capital’s Stake Value: $40,120,000
Percentage of Steadfast Capital’s 13F Portfolio: 0.66%
Number of Hedge Fund Holders: 35
StoneCo Ltd. (NASDAQ:STNE) is a company that specializes in financial technology. The firm provides a comprehensive cloud-based technology platform for electronic commerce in shops, on the web, and on mobile devices. On April 8, Cantor Fitzgerald analyst Josh Siegler initiated coverage of StoneCo Ltd. (NASDAQ:STNE), rating the stock as Overweight and setting the price target at $15.
Steadfast Capital elevated its position in StoneCo Ltd. (NASDAQ:STNE) by 81% in Q4 2021, holding 2.38 million shares worth over $40.12 million. The stock accounts for 0.66% of the fund’s total 13F portfolio. As of the conclusion of the fourth quarter, Berkshire Hathaway was the largest shareholder in StoneCo Ltd. (NASDAQ:STNE) out of the 924 hedge funds tracked by Insider Monkey.
At the end of the fourth quarter of 2021, 35 hedge funds in the database of Insider Monkey held stakes worth $892.51 million in StoneCo Ltd. (NASDAQ:STNE), down from 37 the preceding quarter worth $2.22 billion.
Along with StoneCo Ltd. (NASDAQ:STNE), Microsoft Corporation (NASDAQ:MSFT), Fidelity National Information Services, Inc. (NYSE:FIS) and Block, Inc. (NYSE:SQ) are some of Robert Pitts’ Steadfast Capital’s significant-tech holdings in Q4 2021.
ClearBridge Investments, in its fourth quarter 2021 investor letter, mentioned StoneCo Ltd. (NASDAQ:STNE). Here is what the fund said:
“We also sold and trimmed several names in the emerging market and emerging growth areas, to manage risk and pursue growth companies with a better long-term risk/reward. These included Brazilian payments provider StoneCo. Having expected a rebound in their performance post a profit warning earlier in the year, rising interest rates in Brazil and investments in newly acquired companies increased operating costs and depressed earnings.”
9. Marqeta, Inc. (NASDAQ:MQ)
Steadfast Capital’s Stake Value: $85,603,000
Percentage of Steadfast Capital’s 13F Portfolio: 1.42%
Number of Hedge Fund Holders: 39
Marqeta, Inc. (NASDAQ:MQ) is a company that develops digital payment technologies. It has solutions for commerce disruptors, digital banks, IT behemoths, and financial institutions, among other industries. Marqeta, Inc. (NASDAQ:MQ) had roughly 200 clients as of December 31, 2021.
On April 6, Barclays analyst Ramsey El-Assal boosted his price objective on Marqeta, Inc. (NASDAQ:MQ) from $17 to $19 and assigned the stock an Overweight rating. Marqeta was singled out by the analyst as a high-quality, undervalued asset poised for strong outperformance amid the larger fintech slump.
Robert Pitts’ Steadfast Capital is the third-largest stakeholder of Marqeta, Inc. (NASDAQ:MQ). Pitts added more than 3.48 million shares to his holdings in the fourth quarter of 2021. Steadfast Capital owned more than 4.99 million shares in the firm, valued at over $85.60 million, representing 1.42% of the hedge fund portfolio. Mick Hellman’s HMI Capital is the leading shareholder of Marqeta, Inc. (NASDAQ:MQ), with a $353.27 million stake in the company.
Overall, hedge funds are loading up on Marqeta, Inc. (NASDAQ:MQ), as 39 out of 924 funds tracked by Insider Monkey held stakes in the company, up from 20 funds a quarter earlier. HMI Capital is the most significant stakeholder of Marqeta, Inc. (NASDAQ:MQ), with 20.57 million shares worth $353.27 million.
Alger, in its fourth quarter 2021 investor letter, mentioned Marqeta, Inc. (NASDAQ:MQ). Here is what the fund said:
“Margeta facilitates the implementation of digital payment technologies. It is a Positive Dynamic Change beneficiary in the digital payments industry. We believe as more commerce is conducted digitally, the digitization and transformation of the payments ecosystem is needed, which Margeta seeks to address through its modern payment card issuing platform, providing infrastructure and tools for building configurable payment cards. Margeta offers issuer processor services and acts as a card program manager. Its platform creates customized payment cards that provide innovative payment experiences for their clients’ customers and end users.
Marqeta has emerged as a card issuing platform category leader in many disruptive verticals, including on-demand delivery, alternative lending, expense management, disbursement, digital remittances, and digital banks. Margeta’s solutions are even sought out by large financial institutions to improve their existing offerings and stay competitive with technology-focused new market entrants. Margeta detracted from performance despite achieving strong revenue growth with higher gross profitability and an expanded customer base in the third quarter. We believe the expiration of a lock up period and the company facing tough comparisons resulting from COVID-19 stimulus payments having boosted consumer spending contributed to the underperformance of Marqeta shares. Additionally, the still small footprints within the Margeta revenue base of crypto, truck brokerage and business-to-business clients may take time to scale.”
8. Adobe Inc. (NASDAQ:ADBE)
Steadfast Capital’s Stake Value: $112,327,000
Percentage of Steadfast Capital’s 13F Portfolio: 1.87%
Number of Hedge Fund Holders: 94
Adobe Inc. (NASDAQ:ADBE) is a global software corporation with many products. Digital Media, Digital Experience, and Publishing are the company’s three main segments. In 2020, Digital Media accounted for 68.88% of Adobe’s income, Digital Experience for 28.55%, and 2.57% for the Publishing segment.
On March 29, Exane BNP Paribas analyst Stefan Slowinski initiated coverage of Adobe Inc. (NASDAQ:ADBE), rating the stock as Outperform and a $570 price target. Fisher Asset Management is Adobe Inc. (NASDAQ:ADBE)’s largest shareholder, with shares totaling $3.82 billion.
Steadfast Capital started building its position in Adobe Inc. (NASDAQ:ADBE) in the second quarter of 2019. In the fourth quarter of 2021 the hedge fund held 198,086 shares in Adobe Inc. (NASDAQ:ADBE), valued at $112.33 million. The company represented 1.87% of the hedge fund’s 13F portfolio.
In the fourth quarter, hedge fund sentiment decreased for Adobe Inc. (NASDAQ:ADBE). According to data compiled by Insider Monkey, 94 hedge funds held stakes in Adobe Inc. (NASDAQ:ADBE) at the end of the fourth quarter, down from 95 funds a quarter earlier.
Richie Capital Group mentioned Adobe Inc. (NASDAQ:ADBE) in its Q2 2021 investor letter: Here is what the fund has to say:
“Adobe Inc. (NASDAQ:ADBE) (up 24.8%) – In the last 15 years, Adobe Inc. (NASDAQ:ADBE) has transformed itself into a software behemoth, more than tripling its revenue since 2010. The company is famous for its namesake PDF-reader and photo-editing software Photoshop. However, Adobe Inc. (NASDAQ:ADBE) sells a full suite of software products through a recurring subscription model. Adobe Inc. (NASDAQ:ADBE) transitioned from selling boxed software to recurring subscriptions in 2013 and revenues have grown consistently since. Adobe Inc. (NASDAQ:ADBE) achieved $13B in revenue in 2020 with 88% Gross Margins.”
7. Datadog, Inc. (NASDAQ:DDOG)
Steadfast Capital’s Stake Value: $116,692,000
Percentage of Steadfast Capital’s 13F Portfolio: 1.94%
Number of Hedge Fund Holders: 73
Datadog, Inc. (NASDAQ:DDOG) is a cloud-native company specializing in analyzing machine data. Clients may monitor and assess their whole IT infrastructure using the company’s software-as-a-service offering. With approximately 5.30 million shares worth $944.47 million, Tiger Global Management LLC is the largest shareholder of Datadog, Inc. (NASDAQ:DDOG) as of Q4.
As part of a larger research note on revised values in the Infrastructure and Security software sectors, Truist analyst Joel Fishbein decreased his price objective on Datadog, Inc. (NASDAQ:DDOG) to $200 from $225 on March 24 but reiterated a Buy recommendation on the stock.
On March 30, Datadog, Inc. (NASDAQ:DDOG) was named a Microsoft Corporation (NASDAQ:MSFT)’s partner in the Azure Cloud Adoption Framework.
On the other hand, Robert Pitts revealed a 45% reduction in his holdings in Datadog, Inc. (NASDAQ:DDOG). The investment has a value of $116.69 million and 655,168 shares in the fourth quarter of 2021. However, the company is getting the attention of the smart money, as 73 hedge funds tracked by Insider Monkey reported owning stakes in Datadog, Inc. (NASDAQ:DDOG) at the end of the fourth quarter, up from 62 funds a quarter earlier.
Artisan Partners, in its fourth quarter 2021 investor letter, highlighted a few stocks and Datadog, Inc. (NASDAQ:DDOG) was one of them. Here is what Artisan Partners stated:
“Datadog, Inc. (NASDAQ:DDOG) is a leading provider of monitoring and analytics for cloud-based applications. The software has become central to how organizations deliver differentiated products and user experiences and optimize business processes—fueling the disruption taking place across nearly every industry. The success of this digital transformation trend is increasingly tied to quality and performance—in turn, driving strong secular demand for IT infrastructure and application monitoring platforms like Datadog, Inc. (NASDAQ:DDOG)’s. The company’s profit cycle was on clear display in its Q3 results, with 75% top line growth driven by new customer additions and existing customers adding additional services. Free cash flow margins expanded nicely as well. We believe Datadog, Inc. (NASDAQ:DDOG)’s low-touch, land-and-expand customer acquisition model combined with a steadily expanding product portfolio position it well for strong profit growth in the coming years, though we trimmed our position size during the quarter as shares approached our PMV estimate.”
6. Workday, Inc. (NASDAQ:WDAY)
Steadfast Capital’s Stake Value: $118,125,000
Percentage of Steadfast Capital’s 13F Portfolio: 1.97%
Number of Hedge Fund Holders: 74
Workday, Inc. (NASDAQ:WDAY) is a company that specializes in the creation of business cloud solutions for finance and human resources. Even after selling 521,203 shares of Workday, Inc. (NASDAQ:WDAY) in the fourth quarter, Robert Pitts’ Steadfast Capital still held 432,406 shares of the company, worth about $118.13 million.
On March 21, Stifel analyst Brad Reback lowered his price target on Workday, Inc. (NASDAQ:WDAY) from $300 to $275 and maintained a Buy rating, as he and the enterprise software team reduced top and bottom line estimates for the vast majority of the roughly 70 software companies they followed by a low single digit percentage on average.
There were 74 hedge funds in our database that held stakes in Workday, Inc. (NASDAQ:WDAY) at the end of the fourth quarter, up from 72 funds in the third quarter. Lone Pine Capital is Workday, Inc. (NASDAQ:WDAY)’s most significant stakeholder, with 5.81 million shares valued at $1.59 billion.
In addition to Microsoft Corporation (NASDAQ:MSFT), Fidelity National Information Services, Inc. (NYSE:FIS), and Block, Inc. (NYSE:SQ), Workday, Inc. (NASDAQ:WDAY) is a notable stock from Steadfast Capital’s Q4 portfolio.
Here is what ClearBridge Investments, in its fourth quarter 2021 investor letter has to say about Workday, Inc. (NASDAQ:WDAY):
“We believe the weakness created an opportunity for us to add to an exceptionally high-quality payments franchise with an attractive growth and free cash flow profile and little credit or interest rate exposure. It also supported our efforts to maintain diversified IT exposure in a narrowing market; additions to our software-as-aservice (SaaS) holding Workday during the quarter also bolstered this diversification, in which we seek to balance exposure to more widely owned mega cap names…”
5. Block, Inc. (NYSE:SQ)
Steadfast Capital’s Stake Value: $121,472,000
Percentage of Steadfast Capital’s 13F Portfolio: 2.02%
Number of Hedge Fund Holders: 96
Block, Inc. (NYSE:SQ), previously Square, Inc., is a San Francisco, California-based financial services and digital payments startup. Block also owns the following businesses: Cash App, Afterpay, Weebly, and TIDAL. Block, Inc. (NYSE:SQ) and Blockstream began construction on a solar- and battery-powered bitcoin (BTC-USD) mining plant in Texas on April 8, using Tesla, Inc. (NASDAQ:TSLA) solar and storage technologies.
Overall, 96 hedge funds in Insider Monkey’s database were bullish on Block, Inc. (NYSE:SQ) in Q3, down from 98 in the previous quarter. These stakes are valued at over $5.96 billion.
RiverPark Funds, in its Q1 2021 investor letter, mentioned Block, Inc. (NYSE:SQ). Here is what the fund said:
“We established a position in leading Financial Technology provider Block, Inc. (NYSE:SQ) during the quarter. Through one integrated system, Block, Inc. (NYSE:SQ) is a hybrid of two businesses: its Seller Business (charging small and medium-sized businesses about 3% for transaction payment processing, plus other services such as instant funds access, and software for everything from customer engagement to payroll), and its Cash App (originally for person-to-person cash transfers and now a growing digital financial services provider for consumers). …” (Click here to see the full text)
4. Okta, Inc. (NASDAQ:OKTA)
Steadfast Capital’s Stake Value: $235,283,000
Percentage of Steadfast Capital’s 13F Portfolio: 3.92%
Number of Hedge Fund Holders: 52
Okta, Inc. (NASDAQ:OKTA) is a company that provides businesses with an identity management platform. Single sign-on, multi-factor authentication, API access management, authentication, user management, and lifecycle management are some of the products offered by Okta, Inc. (NASDAQ:OKTA).
On April 5, KeyBanc analyst Michael Turits trimmed Okta, Inc. (NASDAQ:OKTA)’s price estimate from $225 to $190, citing lower peer multiples and more performance risk following the company’s recent partner breach. The analyst, however, maintained an Overweight recommendation on the stock. On March 22, Okta, Inc. (NASDAQ:OKTA) revealed a security compromise perpetrated by the Lapsus$ hacker gang.
Steadfast Capital also strengthened its position in Okta, Inc. (NASDAQ:OKTA) by buying 118,128 additional shares in the fourth quarter of 2021. This makes their stake in Okta, Inc. (NASDAQ:OKTA) 1.05 million shares worth $235.28 million.
By the end of the fourth quarter of 2021, Insider Monkey identified 52 hedge funds that had stakes in Okta, Inc. (NASDAQ:OKTA). These stakes were worth a total of $2.11 billion. As of April 11, 2022, Christopher Lyle of SCGE Management was the lead stakeholder of Okta, Inc. (NASDAQ:OKTA). The fund owned more than 1.79 million shares of the stock, worth $400.59 million.
3. Wix.com Ltd. (NASDAQ:WIX)
Steadfast Capital’s Stake Value: $265,661,000
Percentage of Steadfast Capital’s 13F Portfolio: 4.43%
Number of Hedge Fund Holders: 29
Wix.com Ltd. (NASDAQ:WIX) is a cloud-based website design and development platform. Wix.com Ltd. (NASDAQ:WIX) provides web templates, web hosting, a web editor, SEO tools, a site builder, a logo creator, and e-mail marketing services.
After Wix.com Ltd. (NASDAQ:WIX)’s Q4 results, JMP Securities analyst Andrew Boone cut his price target to $140 from $250, citing that collections and revenue were 4% and 1% below estimate, respectively, but maintained an Outperform rating on the stock.
The hedge fund of Robert Pitts entered the fourth quarter of 2021 with 1.68 million shares of Wix.com Ltd. (NASDAQ:WIX) in the portfolio worth around $265.66 million. The company has featured on the Pitts’ portfolio since the fourth quarter of 2014. Steadfast Capital is the leading shareholder of Wix.com Ltd. (NASDAQ:WIX).
According to Insider Monkey’s database, 29 hedge funds had a stake in Wix.com Ltd. (NASDAQ:WIX) as of Q4 2021. The total value of their holdings was $821.01 million.
In its fourth quarter 2021 investor letter, ClearBridge Investments, mentioned Wix.com Ltd. (NASDAQ:WIX). Here is what the fund said:
“Strength in companies like New Relic offset weakness in highermultiple growth names that were dragged down by negative sentiment or short-term execution issues. Shares of Wix.com, for example, continued to lose momentum after a surge in demand for its web-based tools to create and manage desktop and mobile websites during the height of pandemic lockdowns. A leading beneficiary of a shift to a digital work and home environment, Wix sold off as it faced tough comparisons to the year ago period and was hurt by a rise in yields that impacted most long duration growth companies.”
2. Microsoft Corporation (NASDAQ:MSFT)
Steadfast Capital’s Stake Value: $372,845,000
Percentage of Steadfast Capital’s 13F Portfolio: 6.21%
Number of Hedge Fund Holders: 262
Microsoft Corporation (NASDAQ:MSFT) is a multinational corporation that creates, licenses, and maintains the software, services, devices, and solutions. On February 8, Morgan Stanley analyst Keith Weiss maintained an Overweight rating and $372 price target on Microsoft Corporation (NASDAQ:MSFT).
With 26.84 million shares worth more than $9.03 billion, Washington-based investment company Fisher Asset Management is the largest shareholder of Microsoft Corporation (NASDAQ:MSFT) among hedge funds tracked by Insider Monkey.
In the fourth quarter, Steadfast Capital sold 737,708 shares of Microsoft Corporation (NASDAQ:MSFT), reducing its remaining stake by about 40%. At of the end of the fourth quarter, the hedge fund held more than 1.11 million shares of Microsoft Corporation (NASDAQ:MSFT), worth about $372.85 million.
According to Insider Monkey, the number of hedge funds following Microsoft Corporation (NASDAQ:MSFT) grew to 262 in Q4 from 250 the previous quarter. These stakes hold a consolidated value of $75.67 billion, up from $65.88 billion.
In its Q4 2021 investor letter, Baron Opportunity Fund mentioned Microsoft Corporation (NASDAQ:MSFT). Here is what the fund said:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter, following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft’s results continued to be strong across the board, with total revenue growing 20% in constant currency, beating Street estimates by 3%; an acceleration in Commercial Cloud revenue to 34% constant-currency growth; operating margins expanding to just under 45%; earnings growth of 23%; and free cash flow growth of 30%. We believe the company is positioned to deliver 13% to 15% organic growth over the next three years, underpinned by total addressable market expansion and continued market share gains across its disruptive cloud product portfolio.”
1. Fidelity National Information Services, Inc. (NYSE:FIS)
Steadfast Capital’s Stake Value: $374,872,000
Percentage of Steadfast Capital’s 13F Portfolio: 6.25%
Number of Hedge Fund Holders: 75
Fidelity National Information Services, Inc. (NYSE:FIS) is a technology, solutions, and services company that works with merchants, banks, and capital markets firms. Merchant, Banking, Capital Markets, and Corporate and Others are the segments through which Fidelity National Information Services, Inc. (NYSE:FIS) operates.
Fidelity National Information Services, Inc. (NYSE:FIS) shares have returned 14.62% to investors over the course of the past month as of April 12. According to the 13F filings for the fourth quarter of 2021, Steadfast Capital held over 3.43 million shares of Fidelity National Information Services, Inc. (NYSE:FIS), amounting to more than $374.87 million in worth and representing 6.25% of the fund’s portfolio value.
At the end of the fourth quarter of 2021, Fidelity National Information Services, Inc. (NYSE:FIS) was in 75 hedge funds’ portfolios. There were 69 hedge funds in our database with Fidelity National Information Services, Inc. (NYSE:FIS) holdings at the end of the previous quarter. According to Insider Monkey’s fourth quarter database, Select Equity Group is the largest shareholder in Fidelity National Information Services, Inc. (NYSE:FIS), with 8.17 million shares valued at $891.53 million.
Baron Funds, in its Q3 2021 investor letter, mentioned Fidelity National Information Services, Inc. (NYSE:FIS) and discussed its stance on the firm. Here is what the fund said:
“Fidelity National Information Services, Inc. provides software to financial institutions and enables merchants to accept electronic payments. The company reported solid quarterly financial results that exceeded expectations and raised annual guidance for revenue and earnings. However, the stock fell due to concerns that Fidelity National’s legacy technology is losing market share to newer competitors with more modern technology. We believe these concerns are overblown and that Fidelity National remains well positioned to grow revenues organically at a high single-digit rate and earnings at a double-digit rate over time.”
You can also take a peek at 8 Best Energy Stocks to Buy According to Stuart Zimmer’s Hedge Fund and 10 Stocks to Buy According to Canyon Capital Advisors.
Follow Insider Monkey on Twitter
Suggested articles:
- 10 Famous Tech Stocks Trading At Discount Today
- 10 Best Biotech Stocks Under $5
- 10 Biotech Stocks to Sell Now According to Cathie Wood
Disclosure: None. 10 Tech Stocks to Buy Now According to Robert Pitts’ Steadfast Capital is originally published on Insider Monkey.
