In this article, we will be taking a look at the 5 Stocks to Buy Now According to Billionaire David Tepper. To read our analysis of David Tepper’s profile and investment strategy, and also the risk/reward and methodology of this list, you can go to the 10 Stocks to Buy Now According to Billionaire David Tepper.
5. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 129
Appaloosa Management LP’s Stake Value: $20,460,000
Percentage of Appaloosa Management LP’s 13F Portfolio: 1.28%
San Francisco, California-based, Uber Technologies, Inc. (NYSE:UBER) provides technology platforms matching consumers looking for rides and independent ride services providers. It also offers other forms of transportation including public transit, bikes, and scooters. Other offerings include food delivery on demand, freight services, business fleet services, and same day delivery options. It operates in over 70 countries worldwide and boasted 115 million monthly active platform consumers as of March 31, 2022.
David Tepper’s Appaloosa Management LP owns 1,000,000 shares of Uber Technologies, Inc. (NYSE:UBER), accounting for 1.28% of its 13F portfolio. The hedge fund shed its stake by 51% in Q2 2022, as compared to the previous quarter.
Earlier this year in August, Uber Technologies, Inc. (NYSE:UBER) released its financial results for the quarter ended June 30, 2022. Its total revenue increased by 106% y-o-y to $8.1 billion, while it reported a net loss of $2.6 billion, for the three months. The normalized EPS was recorded at -$0.03 for the quarter, beating the consensus by $0.02.
As of Q2 2022, 129 of the 895 hedge funds tracked by Insider Monkey were long Uber Technologies, Inc. (NYSE:UBER), holding shares worth $5.3 billion. Ken Fisher’s Fisher Asset Management was the largest shareholder with ownership of 24.5 million shares valued at $501 million.
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 153
Appaloosa Management LP’s Stake Value: $218,745,000
Percentage of Appaloosa Management LP’s 13F Portfolio: 13.73%
Alphabet Inc. (NASDAQ:GOOG), based in Mountain View, California, is the parent company of several companies including the Google, Verily Life Sciences, GV (formerly Google Ventures), Calico, and X-the moonshot factory. Majority of its revenue is generated by Google Services which comprises of ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube.
Alphabet Inc. (NASDAQ:GOOG) is ranked #1 on the list of David Tepper’s Appaloosa Management LP’s holdings based on its portfolio weight of 13.73% as of Q2 2022. The hedge fund holds 100,000 shares of Alphabet Inc. (NASDAQ:GOOG), 16% less than the number of shares held at the end of the previous quarter.
Alphabet Inc. (NASDAQ:GOOG) announced the release of Android 13 earlier in August, adding multiple new features focused on personalization and privacy. Alphabet Inc. (NASDAQ:GOOG) released the financial results for Q2 2022 earlier this year in July. Its revenue increased by 13% y-o-y to $69.7 billion, while its net income decreased by 16% y-o-y to $16 billion, for three months ended June 30, 2022. It reported an EPS of $1.21, missing the consensus by $0.08.
Alphabet Inc. (NASDAQ:GOOG) is one of the most commonly owned stock among the 895 hedge funds tracked by Insider Monkey. As of Q2 2022, 153 hedge funds owned shares of Alphabet Inc. (NASDAQ:GOOG), valued at $22.3 billion.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Appaloosa Management LP’s Stake Value: $161,250,000
Percentage of Appaloosa Management LP’s 13F Portfolio: 10.12%
Menlo Park, California-based Meta Platforms, Inc. (NASDAQ:META) is a technology conglomerate focused on building products and services that help people connect and communicate. Formerly known as Facebook, Inc., the tech conglomerate reports its business under two segments: Family of Apps – comprising social media web and smartphone apps Facebook, Instagram, Messenger, and WhatsApp; and Reality Labs – comprising augmented and virtual reality products including hardware, software, and content.
Meta Platforms, Inc. (NASDAQ:META) mainly generates revenue through advertising services on its platforms which boast a combined total of 3.65 billion monthly active users as of June 30, 2022.
Meta Platforms, Inc. (NASDAQ:META) is ranked #2 on the list of David Tepper’s Appaloosa Management LP’s holdings based on its portfolio weight of 10.12% as of Q2 2022. The hedge fund holds 100,000 shares of Meta Platforms, Inc. (NASDAQ:META), 13% more than the number of shares held at the end of the previous quarter.
In July, Meta Platforms, Inc. (NASDAQ:META) released the financial results for Q2 2022. Its total revenue declined by 1% y-o-y to $28.8 billion, while its net income declined by 36% y-o-y to $6.7 billion, for three months ended June 30, 2022. It reported a normalized EPS of $2.46 for the quarter, missing the consensus by $0.09.
In August, Morgan Stanley analyst reduced the price target on Meta Platforms, Inc. (NASDAQ:META) shares from $280 to $225, while Loop Capital lowered the price target from $180 to $165.
Meta Platforms, Inc. (NASDAQ:META) is among hedge funds’ favorites as 184 of the 895 hedge funds tracked by Insider Monkey hold its shares valued at a combined total of $18.2 billion. The social media company ranks #3 on the list of 10 stocks to buy now according to billionaire David Tepper based on the number of hedge funds invested in the stock.
Here is what Alger Capital specifically said about Meta Platforms, Inc. (NASDAQ:META):
“Meta Platforms, Inc. (NASDAQ:META) operates Facebook, the world’s largest social network. The digital advertising industry is taking market share of advertising dollars from print, radio, and tv media. However, concerns about brand risk, or having advertisements appear alongside of controversial content, caused brands and agencies to move budgets away from meta, resulting in disappointing revenue. Diminished ad tracking capability relative to consumer opt-out also weighed upon sentiment for meta shares. Meta’s share performance responded favorably, however, to first quarter results that that while not strong fundamentally, were positive against extremely low expectations among some investors. The positive contribution to portfolio performance was due to a sequential quarterly increase in customer utilization and management lowering its expense guidance $3 billion in order to protect earnings. In a market environment that is rewarding companies with relatively high current earnings, we believe Meta’s spending discipline resonated with investors.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 252
Appaloosa Management LP’s Stake Value: $159,315,000
Percentage of Appaloosa Management LP’s 13F Portfolio: 10%
Amazon.com Inc (NASDAQ:AMZN), is a multinational technology company operating online and physical stores where it sells its own products as well as allows third-party sellers to sell their products to consumers. It manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, and Ring, and develops and produces media content; and provides cloud computing services through Amazon Web Services platform. Its ecommerce platform is home to more than 1.7 million small and medium businesses.
Amazon.com Inc (NASDAQ:AMZN) ranks #3 on the list of David Tepper’s Appaloosa Management LP’s holdings based on its portfolio weight of 10% as of Q2 2022. The hedge fund holds 1,500,000 shares of Amazon.com Inc (NASDAQ:AMZN), 1,665% more than the number of shares held at the end of the previous quarter.
In July, Amazon released its financial results for the second quarter of 2022. Its total revenue increased by 7% y-o-y to $121.2 billion, while it reported a net loss of $2 billion for the three months ended June 30, 2022. The normalized EPS was recorded at (-$0.20) for the quarter, missing the consensus by $0.32.
Amazon.com Inc (NASDAQ:AMZN) is also highly sought after by hedge funds with the second highest number of hedge funds as 252 out of the 895 tracked by Insider Monkey hold its shares with a total value of $30.1 billion. The ecommerce giant ranks #2 on the list 10 stocks to buy now according to billionaire David Tepper based on the number of hedge funds invested in the stock.
Oakmark Funds, an investment management firm, mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its second quarter of 2022 investor letter. Here’s what they said:
“Amazon (NASDAQ:AMZN) is the leading e-commerce and cloud-computing provider in the world. Two-thirds of U.S. households are Amazon Prime subscribers, and over half of all online product searches now start on Amazon. We believe the company’s strong customer loyalty and massive infrastructure are significant barriers to entry in a growing e-commerce market. Separately, Amazon Web Services (“AWS”) controls nearly half of the market in cloud computing. We believe AWS has become utility-like in nature and scale and we expect healthy growth moving forward as IT workloads continue moving to the cloud. More recently, concerns about rising investment spending have weighed on the stock-as they have in times past-providing us another opportunity to purchase shares at a very attractive price. At our purchase price and valuing AWS like its peers, an investor isn’t paying much of anything for the immensely valuable e-commerce franchise.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 258
Appaloosa Management LP’s Stake Value: $64,208,000
Percentage of Appaloosa Management LP’s 13F Portfolio: 4.03%
Redmond, Washington-based Microsoft Corporation (NASDAQ:MSFT) is a leading technology company with products include operating systems, cross-device productivity applications, server applications, business solution applications, desktop and server management tools, software development tools, and video games. Microsoft Corporation (NASDAQ:MSFT) boasts over 1.4 billion monthly active devices running its flagship operating system, Windows 10 or 11.
David Tepper’s Appaloosa Management LP owns 250,000 shares of Microsoft Corporation (NASDAQ:MSFT), accounting for 4.03% of its 13F portfolio. The hedge fund shed its stake by 32% in Q2 2022, as compared to the previous quarter.
In July, Microsoft Corporation (NASDAQ:MSFT) reported its earnings for the quarter ended June 30, 2022. Its revenue increased by 12% y-o-y to $51.9 billion, while net income increased by 2% y-o-y to $16.7 billion. It recorded a normalized EPS of $2.23, missing consensus by $0.06.
Earlier this year, Microsoft agreed to acquire Activision Blizzard, Inc. (NASDAQ:ATVI) in an all-cash transaction valued at $68.7 billion. The proposed acquisition is expected to accelerate growth in Microsoft’s Gaming business across mobile, PC, console, and cloud.
As of Q2 2022, Microsoft Corporation (NASDAQ:MSFT) is the most sought-after stock among the 895 hedge funds tracked by Insider Monkey as 258 of these hedge funds held shares in the software giant, valued at $56 billion. The software giant ranks #1 on the list 10 stocks to buy now according to billionaire David Tepper based on the number of hedge funds invested in the stock.
You can also take a look at the Long-Term Analyst: Buy These 5 Stocks and 10 Best Blue Chip Stocks To Buy.
