5 Technology Stocks to Buy Now According to Dan Loeb

3. Alphabet Inc. (NASDAQ:GOOG)

Third Point’s Stake Value: $614,172,000

Percentage of Third Point’s 13F Portfolio: 4.28%

Number of Hedge Fund Holders: 158

Dan Loeb’s Third Point first invested in Alphabet Inc. (NASDAQ:GOOG) back in Q1 2016 and held the stake until the first quarter of 2018. The hedge fund disposed of the Alphabet Inc. (NASDAQ:GOOG) position in Q2 2018, before purchasing shares of the company again in Q4 2020. As of the fourth quarter of 2021, Third Point holds 212,000 Alphabet Inc. (NASDAQ:GOOG) shares, worth over $614 million. It remains one of the top technology stocks to buy now according to Dan Loeb. 

On March 16, Alphabet Inc. (NASDAQ:GOOG)’s disclosed its acquisition of Raxium, a startup that builds small light emitting diodes for displays utilized in augmented and mixed reality devices. This acquisition is Alphabet Inc. (NASDAQ:GOOG)’s play into the AR and VR space, following the footsteps of competitors such as Apple, Meta Platforms, and Snap. 

Tigress Financial analyst Ivan Feinseth on March 18 lifted the firm’s price target on Alphabet Inc. (NASDAQ:GOOG) to $3,670 from $3,540 and reiterated a Strong Buy rating on the shares, citing the company’s “extremely strong” Q4 results and its continuous investment in the Artificial Intelligence division. 

Insider Monkey’s Q4 data suggests that Alphabet Inc. (NASDAQ:GOOG) shares were held by 158 elite hedge funds, compared to 156 funds in the earlier quarter. Chris Hohn’s TCI Fund Management is the biggest Alphabet Inc. (NASDAQ:GOOG) shareholder, with a position worth $8.5 billion. 

Here is what Vulcan Value Partners has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q4 2021 investor letter:

“In contrast, we made a different kind of mistake about a decade ago. Google, now Alphabet, performed very well for us while we owned it. The company kept outperforming our assumptions and we kept lowering them to be conservative. “Trees do not grow to the sky.” The stock kept going up and our value grew but did not keep pace with the stock. It hit our estimate of fair value and we sold it with a nice gain, patting ourselves on the back. We kept following the company and what they actually did over the next several years was roughly double the assumptions we used to value it. Therefore, our value was too conservative, and we sold it too cheaply, missing many years of compounding. Fortunately, we experienced some volatility several years ago that allowed us to purchase Alphabet (Google) again with a margin of safety.”