In this post, we will look at the five best tech stocks to buy according to Anand Parekh’s Alyeska Investment. To learn more about the hedge fund and its founder, take a look at 10 Best Tech Stocks to Buy According to Anand Parekh’s Alyeska Investment.
5. Twilio Inc. (NYSE:TWLO)
Alyeska Investment’s Stake Value: $124 million
Percentage of Alyeska Investment’s 13F Portfolio: 1.42%
Number of Hedge Fund Holders: 64
Twilio Inc. (NYSE:TWLO) provides a cloud communications platform for software developers. This allows them to access a programming interface that allows for consumer engagement and embedding different capabilities. The firm is based in San Francisco, California.
Alyeska Investment owned a $124 million stake in Twilio Inc. (NYSE:TWLO) as this year’s June quarter ended. The stake represented 1.42% of the firm’s investment portfolio. Insider Monkey’s Q2 2022 survey of 895 hedge funds saw 64 investors in the firm.
Amidst the turbulent economic times that are plaguing the technology industry lately, Twilio Inc. (NYSE:TWLO) announced in September this year that it is laying off 11% of its employees in order to maintain profitability and profit margins. Piper Sandler reduced the company’s share price target to $113 from $122 in September 2022, as it stated that the firm has several near term catalysts but it should be wary of a slowdown in customer marketing.
Twilio Inc. (NYSE:TWLO)’s largest investor in our database is Catherine D. Wood’s ARK Investment Management which owns 5.5 million shares that are worth $586 million.
RiverPark Funds mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
We forecast 30% annual revenue growth through 2027, with EBITDA margins approaching the company’s long-term model guidance of 27% to generate $11.49 of EPS. At its current stock price, TWLO trades at about 5x this 2027 EPS projection (and trades at only 3x our 2030 EPS estimate). We project that the company will generate nearly 65% of its current enterprise value in excess free cash over the next five years and all of its current enterprise value in excess cash by the end of the decade…” (Click Here to read the full text)
4. Alphabet Inc. (NASDAQ:GOOG)
Alyeska Investment’s Stake Value: $129 million
Percentage of Alyeska Investment’s 13F Portfolio: 1.48%
Number of Hedge Fund Holders: 153
Alphabet Inc. (NASDAQ:GOOG) is one of the largest technology firms in the world that is primarily known for its search engine Google. The company also has a host of other technologies and products in its portfolio, such as autonomous driving, cloud computing, and productivity applications.
Alphabet Inc. (NASDAQ:GOOG) announced earlier this month that it had decided to wind down its Stadia gaming service – a decision that left developers surprised as they complained that the company had not provided them with a warning. In a nice pivot to environmentally friendly technologies, the firm announced in September 2022 that it is introducing a new platform that will allow its users to search for environmentally friendly hotels and airplane tickets for their vacations.
Mr. Parekh’s investment firm owned 59,573 Alphabet Inc. (NASDAQ:GOOG) shares as part of its second quarter of 2022 investment portfolio which let it own a $129 million stake in the company. For the same time period, 153 out of the 895 hedge funds polled by Insider Monkey had also invested in the company.
Alphabet Inc. (NASDAQ:GOOG)’s largest investor in our database is Chris Hohn’s TCI Fund Management which owns 2.4 million shares that are worth $5.4 billion.
“The largest adds were Alphabet, the parent of Google, and Meta, formerly called Facebook. Alphabet came into the portfolio at the last rebalance after Q1 2022, but was increased again as valuation improved with a decline in enterprise value despite rising free cash flow estimates. Figure 13 plots the indexed change in Alphabet’s enterprise value and free cash flow estimates since the start of the year and the overall result looks very similar to the lines for Apple on the previous page. In conjunction with the stability in cash flows highlighted earlier, this makes Alphabet look very appealing. In contrast to Alphabet, Figure 14 shows the same indexed enterprise value and rolling next-twelve-month consensus estimate for free cash flow for Amazon, and highlights how Amazon’s performance has largely followed downward revisions in its estimated profitability.”
3. Adobe Inc. (NASDAQ:ADBE)
Alyeska Investment’s Stake Value: $147 million
Percentage of Alyeska Investment’s 13F Portfolio: 1.68%
Number of Hedge Fund Holders: 92
Adobe Inc. (NASDAQ:ADBE) is a technology company that enables its customers to develop content and manage customer experiences. The firm deals directly with enterprise customers and it is based in San Jose, California.
As part of its Q2 2022 holdings, Alyeska Investment owned a $147 million stake in Adobe Inc. (NASDAQ:ADBE). This made up 1.68% of the firm’s investment portfolio. Insider Monkey’s second quarter of 2022 survey of 895 hedge funds revealed that 92 had also invested in the company.
Adobe Inc. (NASDAQ:ADBE) has managed to grow its revenue consistently for the past ten years and its operating income for the last six years. Additionally, it is one of the strongest firms in the industry in terms of free cash flow to revenue margin, with the latest figure showing that out of every $100 in revenue, the firm generates $41.50 in free cash flow.
Adobe Inc. (NASDAQ:ADBE)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 6.1 million shares that are worth $2.2 billion.
Polen Capital mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
We expect the company to continue to grow earnings at a highteens or better rate for the foreseeable future on the back of robust secular growth tailwinds in digital content creation and consumption. Adobe’s tools are the de facto standards for various applications such as graphics and video editing. In addition, Adobe stands to be a leader in providing tools for creators to develop aspects of the immersive internet (metaverse) as that develops as well.
2. Atlassian Corporation Plc (NASDAQ:TEAM)
Alyeska Investment’s Stake Value: $150 million
Percentage of Alyeska Investment’s 13F Portfolio: 1.72%
Number of Hedge Fund Holders: 66
Atlassian Corporation Plc (NASDAQ:TEAM) develops and sells a host of software products such as workflow, strategic product management, content collaboration, and centralized administration. The firm is headquartered in Sydney, Australia.
Atlassian Corporation Plc (NASDAQ:TEAM)’s latest fiscal quarter saw the firm grow its revenue by 40% and at the same time, the firm also posted a strong gross margin of 82% – as it benefited from being a software company with low costs of product development. Mizuho kept a $360 price target for the company in September 2022, stating that the firm will benefit from recent price increases.
Alyeska Investment owned 803,823 Atlassian Corporation Plc (NASDAQ:TEAM) shares as this year’s second quarter came to an end. This let it own a $150 million stake in the company. Insider Monkey’s 895 hedge fund survey for the same time period saw 66 investors in the firm.
Atlassian Corporation Plc (NASDAQ:TEAM)’s largest investor is Henry Ellenbogen’s Durable Capital Partners which owns 2.5 million shares that are worth $485 million.
Artisan Partners mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
“Atlassian Corporation Plc (NASDAQ:TEAM) is a leading provider of innovative, customizable team-collaboration software tools for over 200,000 customers. Despite positive fundamental momentum—the company recently reported 30% revenue growth and 28% trailing twelve months FCF margins—shares traded lower during Q2 as investors rotated out of high-growth stocks with elevated multiples. The company’s highly efficient sales and marketing capability, combined with substantial R&D investment, points to sustained long-term revenue and FCF growth. Meanwhile, we recognize a recession would likely have an impact on Atlassian via slowing growth metrics. However, we believe its low priced, mission critical cloud tools would prove relatively resilient in this scenario. For these reasons and shares trading at a very attractive valuation for a business with highly recurring revenues, strong revenue growth prospects and attractive margins, we added to our position.”
1. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
Alyeska Investment’s Stake Value: $169 million
Percentage of Alyeska Investment’s 13F Portfolio: 1.93%
Number of Hedge Fund Holders: 66
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is one of the largest video game development firms in the world. It has several development brands in its portfolio, with the most famous one of these being Rockstar Games which is renowned for the video game Grand Theft Auto.
For its Q2 2022 investments, Mr. Parekh’s hedge fund owned a $169 million stake in Take-Two Interactive Software, Inc. (NASDAQ:TTWO) which represented 1.93% of its investment portfolio. Insider Monkey surveyed 895 hedge fund holdings for their June quarter of 2022 investments to discover that 66 had bought a stake in the game developer.
Take-Two Interactive Software, Inc. (NASDAQ:TTWO)’s GTA franchise is one of the most well recognized brands in the world, and it is expected that the company will further build on this by integrating a metaverse in the platform. To date, GTA V has sold 170 million units, becoming one of the most successful gaming brands in the world.
Take-Two Interactive Software, Inc. (NASDAQ:TTWO)’s largest investor in our database is Andreas Halvorsen’s Viking Global which owns 1.9 million shares that are worth $245 million.
Disclosure: None. You can also take a look at 15 Largest FMCG Companies in the World and 10 Best Cheap Technology Stocks To Buy.
