5 Tech Stocks to Buy According to Billionaire James Dinan

1. Baidu, Inc. (NASDAQ:BIDU)

York Capital Management’s Stake Value: $57,143,000
Percent of York Capital Management’s 13F Portfolio: 6.4%
Number of Hedge Fund Holders: 59

Baidu, Inc. (NASDAQ:BIDU) tops our list of the best tech stocks to buy according to billionaire James Dinan. It is a Chinese multinational technology company that focuses on internet-related services and AI. 

As of Q2 2021, York Capital Management holds 280.251 shares in Baidu, Inc. (NASDAQ:BIDU), valued at over $57.1 million. The company accounts for 6.4% of the hedge fund’s 13F portfolio as the hedge fund increased its stake in the company by 72% in the second quarter. In Q2 2021, Baidu, Inc. (NASDAQ:BIDU) posted an EPS of $2.39, beating the consensus by $0.33. The company’s revenue presented a 20% year-over-year growth at $4.8 billion. In August BofA rated Baidu, Inc. (NASDAQ:BIDU) as a ‘Buy’ with a $286 price target. 

Of the 873 hedge funds tracked by Insider Monkey, 59 hedge funds have positions in Baidu, Inc. (NASDAQ:BIDU) in Q2 2021, compared with 89 in the previous quarter. These stakes are valued at over $3.4 billion. 

Horos Asset Management mentioned Baidu, Inc. (NASDAQ:BIDU) in its first-quarter 2021 investor letter. Here is what the firm has to say: 

“We have also fully exited our stake in Baidu, following their outstanding performance during the period and their lower relative upside potential compared to other investment alternatives, which we will discuss below.

The Chinese technology platform company Baidu has also been held in the portfolios managed by Alejandro, Miguel and myself for several years. During this period, we have seen very high volatility in its share price, which we have taken advantage of to make significant rebalancing moves in our position (in fact, we even sold our entire position once, when we thought the stock’s upside potential was exhausted). After several years of instability, market sentiment turned very positive, putting an end to the historical advertising problems in the healthcare sector, the divestments in O2O (Online-to-Offline) businesses that continued to weigh on the company’s margins, the IPO of part of the iQiyi streaming business (which hid Baidu’s underlying cash generation capacity) and the tough competition from other industry giants such as Tencent and Alibaba, as well as the entry of new players with disruptive business models (ByteDance). At the same time, the company’s recent commitment to electric vehicles contributed even more to this change of narrative. Baidu’s share price rose almost fourfold from the March 2020 lows to all-time highs and reached a valuation where the margin of safety, in our view, was too narrow.”

You can also take a look at Billionaire David Abrams’ Top Stock Picks and Billionaire Daniel Sundheim’s Top 10 Picks

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