Below is the list of 5 stocks Jim Cramer and billionaire Ken Fisher have in common. If you want to read our comprehensive list and detailed discussion about their stock-picking strategies, go directly to the 10 Stocks Jim Cramer and Billionaire Ken Fisher Have in Common.
5. PayPal Holdings, Inc. (NASDAQ: PYPL)
Number of Hedge Fund Holders: 143
CNBC’s host Jim Cramer says PayPal Holdings, Inc. (NASDAQ: PYPL) is a good stock to hold for the long term. Over the last year, the fintech company gained a lot of investors’ confidence amid its growth initiatives and consumer’s shift towards online payment platforms. Moreover, the company’s strategy of diving into crypto markets has also been helping in generating billions of dollars in revenue. Its shares are up 16.5% year to date.
In the second quarter, Fisher Asset Management lifted its position in the payment transfer company by 4% to 11.57 million shares.
Lakehouse Capital, an investment management firm, commented on a few stocks including PayPal in the second quarter investor letter. Here is what Lakehouse Capital stated:
“PayPal had a tremendous year as it was a significant beneficiary in the pull-forward in ecommerce. Total payment volume increased by 50% year-on-year through the first quarter of 2021 thanks to significant growth in users and merchants. The company now has 392 million active users, up 20.6% from March 2020, who use PayPal an average of 42 times a year. The significant growth in users and activity both look structural to us, not cyclical, and we doubt the six-million-plus merchants who began accepting PayPal in the past year will suddenly stop accepting one of the internet’s most widely used forms of payment.
PayPal is a prime example of how a widely followed business can still be chronically misunderstood. FactSet tracks 48 analysts who publish price targets on the stock, suggesting PayPal’s shares should be efficiently priced, and yet PayPal has beaten analysts’ average sales and earnings estimates in 18 of the 21 quarters since it was spun off from eBay. We suspect the market tends to underestimate the business’ inherent operating leverage and that the lifetime values of incremental new users continue to rise over time thanks to improving the functionality and a growing merchant base that allows new users to spend PayPal more widely than did their predecessors…” (Click here to see the full text)
4. Adobe Inc. (NASDAQ: ADBE)
Number of Hedge Fund Holders: 89
Jim Cramer recommended investors buy Adobe Inc. (NASDAQ: ADBE) stock that saw a robust rally of 31% in the last three months. In the second quarter, Fisher Asset Management also raised its position in Adobe by 3% to 6.2 million shares, accounting for 2.28% of the overall portfolio.
Richie Capital Group, an investment management firm, highlighted a few stocks including Adobe in the second quarter investor letter. Here is what Richie Capital Group stated:
“Adobe Systems – In the last 15 years, Adobe 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, ADBE sells a full suite of software products through a recurring subscription model. The company transitioned from selling boxed software to recurring subscriptions in 2013 and revenues have grown consistently since. The company achieved $13B in revenue in 2020 with 88% Gross Margins.”
3. Amazon.com, Inc. (NASDAQ: AMZN)
Number of Hedge Fund Holders: 271
CNBC’s Jim Cramer recommends investors buy and hold Amzon.com Inc. (NASDAQ: AMZN) shares, which is also the third-largest stock holding of Fisher Asset Management portfolio. Cramer applauds Amazon’s pricing power. Following a depressing performance in the first quarter, Amazon’s stock price bounced back during the second quarter.
In the second quarter investor letter, Nelson Capital Management, an investment management firm, commented on a few stocks including Amazon. Here is what Nelson Capital Management stated:
“In the consumer discretionary sector, we trimmed pandemic winners in favor of companies we believe will outperform in a recovery period. We reduced our position in Amazon following its stellar performance through the pandemic. Though we believe online shopping is here to stay, we think some portion of consumer wallet share will transition to services and experiences.”
2. Microsoft Corporation (NASDAQ: MSFT)
Number of Hedge Fund Holders: 238
The technology giant Microsoft (NASDAQ: MSFT) is one of Jim Cramer’s most favorite stocks to hold for the long term. He is impressed with the innovation power of the tech giant.
Over the last two decades, Fisher Asset Management has been holding a position in Microsoft. The firm held 24.8 million shares of Microsoft at the end of the second quarter. Along with a steady share price growth, Microsoft’s sustainable dividend growth makes it a good stock to hold for the long term.
Alger, an investment management firm, published its “Alger Spectra Fund” second quarter 2021 investor letter. The firm highlighted a few stocks including Microsoft in the investor letter. Here is what Alger stated:
“Microsoft Corp. was among the top contributors to performance. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Recently, Microsoft reported that Azure grew 50% during the past quarter.
This high-unit volume growth is a primary driver of the company’s higher share price, but Microsoft’s strong operating execution has enabled notable margin expansion that has also helped to increase forward earnings estimates. We believe Microsoft’s subscription-based software offerings and cloud computing services have a durable growth profile because they enhance customers’ growth initiatives and help them to diminish costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases. Microsoft’s chief executive officer, furthermore, reiterated his comment from a few months back, when he said he expects technology spending as a percent of GDP to jump from about 5% today to 10% in a few years and that Microsoft is well-positioned to capture market share.”
1. Apple Inc. (NASDAQ: AAPL)
Number of Hedge Fund Holders: 138
Jim Cramer has constantly been urging investors to own Apple Inc. (NASDAQ: AAPL) for the long term and not trade this stock as the company’s robust fundamentals are contrasting with the distracting bullish and bearish cycles.
Apple is the largest stock-holding of billionaire Ken Fisher’s hedge fund at the end of the second quarter. Fisher Asset Management held 64.8 million shares of Apple worth around $8.88 billion. Apple stock price soared 16% in the last three months.
Prominent investors were in an optimistic mood. The number of bullish hedge fund positions increased by 11 recently. Apple was in 138 hedge funds’ portfolios at the end of June compared to 127 positions in March.
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