5 Best Tech Stocks To Buy According to Billionaire Ken Griffin

This article presents an overview of the 5 Best Tech Stocks To Buy According to Billionaire Ken Griffin. For a detailed overview of 12 such stocks read our article, 12 Best Tech Stocks To Buy According to Billionaire Ken Griffin.

5. T-Mobile Us Inc (NASDAQ:TMUS)

Ken Griffin’s Stake: $563M

Citadel decreased its take in T-Mobile Us Inc (NASDAQ:TMUS) by 34% in the third quarter, concluding the period with a $563 million stake in T-Mobile Us Inc (NASDAQ:TMUS).

A total of 79 hedge funds tracked by Insider Monkey had stakes in T-Mobile Us Inc (NASDAQ:TMUS) as of the end of the September quarter.

ClearBridge Dividend Strategy made the following comment about T-Mobile US, Inc. (NASDAQ:TMUS) in its Q3 2023 investor letter:

“During the quarter we initiated positions in two new names: T-Mobile US, Inc. (NASDAQ:TMUS) and Gilead Sciences. T-Mobile is the best-in-class player in the wireless space, delivering the strongest growth with the lowest cost structure and the best consumer proposition. T-Mobile’s strength is rooted in its advantaged competitive position. Its superior spectrum holdings enable it to provide better wireless service at meaningfully lower cost. T-Mobile’s annual capital expenditures run about $10 billion, on the order of half the amount its peers must spend. Due to its lower cost structure, T-Mobile can undercut its competitors on price while still generating compelling profitability and returns.

This combination — superior service at lower prices — has enabled T-Mobile to outgrow its competition. In the three years since completing its merger with Sprint, T-Mobile has grown its post-paid subscriber base by about 22%. Over the same period, AT&T’s has grown by about 14%, while Verizon’s by less than 5%.

Given the high fixed-cost nature of the wireless business, these steady increases in revenue growth have led to outsize increases in profits and free cash flow. Free cash flow in 2023 is expected to come in around $13.5 billion, up from less than $8 billion last year. In 2024 free cash flow is expected to grow by over 20% to approximately $17 billion — providing a 10% yield based on today’s stock price.

We have long admired T-Mobile, but until recently the stock did not pay a dividend. The company announced its inaugural dividend in September, and we bought the stock shortly thereafter. The initial yield is about 2% and it is expected to grow about 10% per year.”