In this article, we discuss 5 best stocks to buy now according to billionaire David Harding. If you want to see some more picks of the billionaire, click 10 Best Stocks to Buy Now According to Billionaire David Harding.
5. Akamai Technologies, Inc. (NASDAQ:AKAM)
Winton Capital Management’s Stake Value: $14,776,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.89%
Number of Hedge Fund Holders: 28
Akamai Technologies, Inc. (NASDAQ:AKAM) is a Massachusetts-based cloud solutions company that optimizes digital content and business applications. The company also protects users from cyberattacks and online threats while improving business performance.
Securities filings for the fourth quarter of 2021 reveal that David Harding’s Winton Capital Management held 126,249 shares of Akamai Technologies, Inc. (NASDAQ:AKAM), worth $14.7 million, representing 0.89% of the total 13F securities.
On February 15, Akamai Technologies, Inc. (NASDAQ:AKAM) posted earnings for the December quarter, reporting an EPS of $1.49, above consensus estimates by $0.07. Revenue for the period jumped roughly 7% year-over-year to $905.36 million, topping analysts’ predictions by $9.02 million. Akamai Technologies, Inc. (NASDAQ:AKAM) also announced the acquisition of Linode, a trusted infrastructure-as-a-service (IaaS) platform provider. This $900 million purchase will result in income tax savings for Akamai Technologies, Inc. (NASDAQ:AKAM) over the course of 15 years, amounting to approximately $120 million.
DA Davidson analyst Rudy Kessinger maintained a Buy recommendation on Akamai Technologies, Inc. (NASDAQ:AKAM) but lowered the firm’s price target on the shares to $130 from $143. The stock fell despite the “solid” Q4 results since the company put forward a disappointing guidance and announced a concerning acquisition, according to the analyst. While Kessinger “still has some questions as to Akamai’s vision and strategy” after its $900 million Linode acquisition announcement, he still believes that the shares are “undervalued”.
Among the hedge funds tracked by Insider Monkey, 28 funds were bullish on Akamai Technologies, Inc. (NASDAQ:AKAM) at the end of the fourth quarter of 2021, compared to 30 funds in the prior quarter. Ken Griffin’s Citadel Investment Group held a leading stake in the company, with 830,070 shares worth more than $97 million.
Here is what Nelson Capital Management has to say about Akamai Technologies, Inc. (NASDAQ:AKAM) in its Q2 2021 investor letter:
“In the technology sector, we sold our position in Akamai (tkr: AKAM). Akamai has benefitted from higher internet traffic during the pandemic, but we expect the company to face difficult comparable earnings results in 2021 and growth expectations going forward remain low.”
