In this article, we will discuss the 5 tech stocks to invest in today according to Thomas E. Claugus’ GMT Capital. If you want to read our detailed analysis of Claugus’ history, investment philosophy, and hedge fund performance, go directly to the 10 Tech Stocks to Invest in Today According to Thomas E. Claugus’ GMT Capital.
5. IAC/InterActiveCorp (NASDAQ: IAC)
Claugus’ Stake Value: $27,057,000
Percentage of Thomas E. Claugus’ 13F Portfolio: 2.01%
Number of Hedge Fund Holders: 50
IAC/InterActiveCorp (NASDAQ: IAC) is an international media and internet company. It was founded in 1995 and is placed fifth on the list of 10 tech stocks to invest in today according to Thomas E. Claugus’ GMT Capital. IAC/InterActiveCorp (NASDAQ: IAC) shares have offered investors more than 62.91% in returns over the course of the past 12 months.
On August 24 Citi analyst Nicholas Jones lowered the price target on IAC/InterActiveCorp (NASDAQ: IAC) to $175 from $185 and kept a “Buy” rating on the shares. The analyst attributes the target reduction to comp group multiple contractions and weaker Angi Inc. (NASDAQ: ANGI) expectations. On August 4, IAC/InterActiveCorp (NASDAQ: IAC) posted earnings for the second quarter of 2021. It reported earnings per share of $2.02 where the consensus estimate was -$0.34. Revenue over the period was $829.5 million, up 14.2% YoY, in line with the previous.
Thomas E. Claugus’ GMT Capital owns 175,500 shares of IAC/InterActiveCorp (NASDAQ: IAC), worth $27.06 million. The company is a latest addition to Thomas E. Claugus’ portfolio. Hedge fund sentiment decreased for IAC/InterActiveCorp (NASDAQ: IAC) in the second quarter of 2021. Insider Monkey’s data shows that 50 hedge funds held stakes in the company in the second quarter of 2021, down from 63 funds a quarter earlier.
Alphyn Capital Management, in its fourth-quarter 2020 investor letter, mentioned IAC/InterActiveCorp (NASDAQ: IAC). Here is what the fund said:
“On November 22nd, IAC announced it would look into spinning out Vimeo, its Software-As-A-Service video creation company, on the back of strong revenue growth and robust investor interest. To quote from the IAC shareholder letter “We just tested Vimeo’s ability to access capital with a small private fundraise to bolster Vimeo’s balance sheet and to repay capital to IAC. We entered into agreements today to raise $150 million of equity capital at Vimeo from outside investors at an implied enterprise value of $2.75 billion, a large multiple of current revenue. We don’t normally think in terms of revenue multiples, but we found real appetite among investors who do – we had more interest in Vimeo than the number of shares we were willing to let Vimeo sell.” In other words, IAC will exploit current valuations while the market is willing to pay for it. This has so far been a good example of our defensive approach towards investing software companies from the cover of an undervalued holding company run by intelligent capital allocators.”
