5 Best Technology Stocks to Buy According to Billionaire Dan Loeb

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In this article, we will discuss the 5 best technology stocks to buy according to billionaire Dan Loeb. If you want to read our detailed analysis of these stocks, you can go directly to 10 Best Technology Stocks to Buy According to Billionaire Dan Loeb.

5. Dell Technologies (NYSE:DELL)

Third Point LLC’s Stake Value: $349,574,000

Percentage of Third Point LLC’s 13F Portfolio: 1.9%

Dell Technologies (NYSE:DELL) is a designer, developer, manufacturer, and seller of IT products, solutions, and services across the world. The Round Rock, Texas-based company, was founded in 1984 by Michael Dell and employs more than 165,000 people today. On November 1, the company announced the spin-off of its 81% equity stake in VMware, Inc. (NYSE:VMW).

Katy Huberty at Morgan Stanley increased the price target from $67 to $68 on Dell Technologies (NYSE:DELL) while maintaining an Overweight rating on November 24.

Third Point Management shared its detailed stance on Dell Technologies (NYSE:DELL) in its Q3 investor letter. Here’s what the fund said:

“Michael Dell has created substantial value for shareholders since re-listing the company several years ago. Earlier this year, Dell Technologies announced that it would be spinning its $50 billion stake in VMWare, which we believe will unlock the underappreciated value of the Dell server and PC businesses. Dell’s best attribute has been strong free cash flow generation, which the company has used to de-lever and create significant latent value for equity holders. Looking ahead, we believe this core Dell business, which still trades at a discount to its hardware peer group, should instead command a premium multiple thanks to its leading market share, profitability, and impressive execution. There are few large cap companies which possess a nearly 10% FCF yield, 2.5% dividend yield and 1.5x leverage ratio; Dell is one of them.”

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