In this article, we discuss the top 5 tech stocks to buy according to billionaire Stanley Druckenmiller. If you want our detailed analysis of these stocks, go directly to 10 Tech Stocks to Buy According to Billionaire Stanley Druckenmiller.
5. Expedia Group, Inc. (NASDAQ:EXPE)
Stanley Druckenmiller’s Stake Value: $149,851,000
Percentage of Stanley Druckenmiller’s 13F Portfolio: 4.86%
Number of Hedge Fund Holders: 78
Expedia Group, Inc. (NASDAQ:EXPE) is an online travel company facilitating customers with its travel fare aggregators and travel metasearch engines, including Expedia.com, Travelocity, and Hotels.com, among others. Increasing his stake in Expedia Group, Inc. (NASDAQ:EXPE) by 81% in the third quarter, Druckenmiller holds 914,282 shares of the company, worth $129.85 million, representing 4.86% of the billionaire’s total Q3 securities.
Expedia Group, Inc. (NASDAQ:EXPE) announced on November 4 its Q3 results, with an EPS of $3.53, beating estimates by $1.77. The revenue totaled $2.96 billion, up almost 97% from the preceding-year quarter, exceeding estimates by $243.16 million.
On December 2, as part of his research on the online travel sector, UBS analyst Lloyd Walmsley initiated coverage of Expedia Group, Inc. (NASDAQ:EXPE) with a Neutral rating and a $173 price target.
Daniel Sundheim’s D1 Capital Partners is the leading Expedia Group, Inc. (NASDAQ:EXPE) stakeholder, holding a $1.88 billion position in the company as of September end. Of the 867 hedge funds tracked by Insider Monkey in the third quarter, 78 funds were long Expedia Group, Inc. (NASDAQ:EXPE), down from 87 funds in the prior quarter.
Here is what ClearBridge Investments has to say about Expedia Inc. (NASDAQ:EXPE) in its Q1 2021 investor letter:
“Several of our better performers in the first quarter were purchased while their business models were under stress from COVID restrictions or the macro environment the pandemic created. What gave us confidence in purchasing Expedia were the actions the company took to extend out their balance sheets until travel resumed. It should benefit as a broader vaccination rollout prompts cruise lines to resume operations and consumers to start traveling again and are positioned to deliver better margins and gain pricing power as the economy normalizes due to the cost controls implemented during the downturn.”
4. Microsoft Corporation (NASDAQ:MSFT)
Stanley Druckenmiller’s Stake Value: $219,246,000
Percentage of Stanley Druckenmiller’s 13F Portfolio: 7.11%
Number of Hedge Fund Holders: 250
Microsoft Corporation (NASDAQ:MSFT), a Big Five US tech firm offering consumer electronics, computer software, and related technology products and services, is one of the top tech stock picks of Stanley Druckenmiller from the third quarter, accounting for 7.11% of the billionaire’s 13F securities. Druckenmiller holds 777,689 Microsoft Corporation (NASDAQ:MSFT) shares, valued at $219.2 million.
Microsoft Corporation (NASDAQ:MSFT) is a highly sought after stock among the smart money. A total of 250 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT) as of Q3 2021, which is an increase compared to the preceding quarter, when 238 funds reported owning stakes in the company, as per Insider Monkey’s database of elite hedge funds.
Microsoft Corporation (NASDAQ:MSFT) announced its Q3 earnings on October 26, posting an EPS of $2.27, beating estimates by $0.19. The quarterly revenue equaled $45.32 billion, surpassing revenue estimates by $1.33 billion.
Michael Turrin from Wells Fargo stated on December 2 that Microsoft Corporation (NASDAQ:MSFT), despite its massive scale of operations, has room for potential growth via Dynamics 365, Power Platform, and Power Automate. He kept an Overweight rating on the stock.
Ken Fisher’s Fisher Asset Management is the largest Microsoft Corporation (NASDAQ:MSFT) stakeholder from Q3, owning 25.52 million shares in the company worth $7.19 billion.
Here is what Alger has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2021 investor letter:
“Microsoft Corporation was among the top contributors to performance during the third quarter. 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. Microsoft reported that Azure grew 51% in the second quarter. This high unit volume growth is a primary driver of the company’s higher share price, but the company’s strong operating execution has enabled 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.”
3. Alphabet Inc. (NASDAQ:GOOG)
Stanley Druckenmiller’s Stake Value: $312,786,000
Percentage of Stanley Druckenmiller’s 13F Portfolio: 10.15%
Number of Hedge Fund Holders: 156
Alphabet Inc. (NASDAQ:GOOG) is one of the largest US tech firms, and it is most commonly recognized for being the parent company of all Google subsidiaries. Alphabet Inc. (NASDAQ:GOOG) posted its Q3 earnings on October 26. EPS in the quarter equaled $27.99, outperforming estimates by $4.75. The $65.12 billion revenue jumped 41% year-over-year, beating estimates by $1.83 billion.
Stanley Druckenmiller increased his position in Alphabet Inc. (NASDAQ:GOOG) by 29% in the third quarter, owning 116,994 shares in the company, worth $312.78 million. Alphabet Inc. (NASDAQ:GOOG) stock represents 10.15% of the billionaire’s Q3 portfolio.
Morgan Stanley analyst Brian Nowak, keeping in mind the exceptional Q3 results, raised the price target on Alphabet Inc. (NASDAQ:GOOG) shares to $3,200 from $3,000 and kept an Overweight rating on the shares on November 2.
Alphabet Inc. (NASDAQ:GOOG) is a popular stock among the hedge funds, with 156 funds holding stakes in the company as of Q3 2021, worth almost $35 billion. The leading Alphabet Inc. (NASDAQ:GOOG) stakeholder is Chris Hohn’s TCI Fund Management, owning 2.95 million shares amounting to $7.86 billion.
Here is what Oakmark Funds has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 investor letter:
“Alphabet, a U.S. communication services provider, was once again a top contributor for the quarter, solidifying its rank as a top contributing stock for the one-year period. The company’s financial results repeatedly exceeded expectations. In particular, its revenue grew faster than expected and its margin trends improved across all segments. In addition, management has executed $24.4 billion of stock repurchases so far in 2021. After further examination, we recently increased our estimate of Alphabet’s intrinsic value based on the company’s better than expected operating leverage and its notable efficiency improvements. As a result, we continue to believe that Alphabet is trading at a significant discount to its intrinsic value.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Stanley Druckenmiller’s Stake Value: $320,508,000
Percentage of Stanley Druckenmiller’s 13F Portfolio: 10.40%
Number of Hedge Fund Holders: 242
Jeff Bezos’ Amazon.com, Inc. (NASDAQ:AMZN) is engaged in ecommerce, online streaming, digital advertising, on-demand services, and artificial intelligence, and is one of the most notable tech stocks from Stanley Druckenmiller’s Q3 portfolio. Druckenmiller holds a $320.5 million stake in Amazon.com, Inc. (NASDAQ:AMZN), which accounts for 10.4% of his total investments from the third quarter.
Amazon.com, Inc. (NASDAQ:AMZN), on October 28, posted its Q3 earnings. EPS for the quarter came in at $6.12, missing estimates by -$2.78. The Q3 revenue equaled $110.81 billion, missing revenue estimates by -$784.89 million.
UBS analyst Kunal Madhukar assumed coverage of Amazon.com, Inc. (NASDAQ:AMZN) on December 2 with a Buy rating and a $4,700 price target, stating that the tech giant has multiple levers to drive margins.
Hedge funds pulled back on Amazon.com, Inc. (NASDAQ:AMZN) in Q3 2021, with 242 funds holding stakes in the company as compared to 271 funds being bullish on Amazon.com, Inc. (NASDAQ:AMZN) in the preceding quarter. Fisher Asset Management is one of the leading stakeholders of the company, holding a $6.34 billion position in the third quarter.
Here is what Madison Funds has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter:
“We did add a modest new position weight to the portfolio in the quarter in Amazon.com, Inc. stock (AMZN). We acknowledge that many aspects of Amazon’s merit as an investment are well appreciated. However, our work leads us to conclude that shares are attractive. Leadership positions in both e-commerce and cloud computing provide the company with significant durable competitive advantages in industries that we think can produce above average growth over the next decade. Over the past year, AMZN shares have trailed the market as investors debate near-term growth prospects following the pandemic-induced e-commerce demand. Additionally, margins have been depressed due to Amazon’s unprecedented increases in spending to build out fulfillment and in-house logistics capabilities – Amazon will build out more square footage this year and last than it did cumulatively over the previous 10 years, more than doubling its in-house delivery capacity. We like the investments Amazon is making and believe they will further advantage the company relative to other retailers, making it nearly impossible for competitors to match the same level of delivery speed and convenience. With its large and frequently engaged customer base, Amazon has multiple mechanisms to make money, including selling advertising and enhanced subscription services. Within the cloud business, we forecast Amazon Web Services (AWS) leveraging its strengths in Infrastructure-as-a-service (IaaS) to move into higher value segments of cloud computing (such as platform-as-a-service: PaaS), allowing the company to continue outgrowing the overall IT sector with strong profitability. While Amazon shares have performed extremely well over the long-term, we think near-term concerns about whether Amazon will earn a return on its accelerated investments provide an opportunity now for investors willing to look through the investment period. Our view is that the investments likely earn strong returns and extend Amazon’s competitive advantages and above average growth.”
1. Coupang, Inc. (NYSE:CPNG)
Stanley Druckenmiller’s Stake Value: $431,845,000
Percentage of Stanley Druckenmiller’s 13F Portfolio: 14.02%
Number of Hedge Fund Holders: 45
Coupang, Inc. (NYSE:CPNG) is a new arrival in Stanley Druckenmiller’s investment portfolio, with the billionaire acquiring 15.5 million shares in the company in the third quarter, valued at $431.8 million, representing 14.02% of his total investments. Coupang, Inc. (NYSE:CPNG), the biggest South Korean ecommerce company offering an extensive online marketplace, is the largest holding in Druckenmiller’s Q3 portfolio.
Coupang, Inc. (NYSE:CPNG), on November 12, announced its Q3 results, posting an EPS of -$0.19, missing estimates by -$0.05. The revenue amounted to $4.64 billion, missing analysts’ consensus estimates by $196.75 million.
On November 15, Mizuho analyst James Lee lowered the firm’s price target on Coupang, Inc. (NYSE:CPNG) to $32 from $40 and kept a Neutral rating on the shares, citing mixed Q3 results and cost constraints due to COVID-19 and increased investments in the food and delivery segment.
Neil Mehta’s Greenoaks Capital is the leading Coupang, Inc. (NYSE:CPNG) stakeholder, holding over 209 million shares in the company worth $5.83 billion. Overall, 45 hedge funds in the Q3 database of Insider Monkey reported owning stakes in Coupang, Inc. (NYSE:CPNG), worth over $10.76 billion.
You can also take a look at 11 Best Young Stocks To Buy Now and 10 Best Dividend Stocks For Steady Growth.
