In this article, we discuss 5 technology stocks to sell now according to Cathie Wood. If you want to read our detailed analysis of these stocks, go directly to 10 Technology Stocks to Sell Now According to Cathie Wood.
5. Silvergate Capital Corporation (NYSE:SI)
Number of Hedge Fund Holders: 37
Percentage Decrease in Stake in Q4: 34%
Silvergate Capital Corporation (NYSE:SI) is a bank holding firm with extensive interests in the fintech sector. It is one of the top fintech stocks in the finance world. Among the hedge funds being tracked by Insider Monkey, Virginia-based investment firm EJF Capital is a leading shareholder in Silvergate Capital Corporation (NYSE:SI), with 641,796 shares worth more than $95 million.
Latest data shows that ARK owned 409,509 shares of Silvergate Capital Corporation (NYSE:SI) at the end of December 2021, worth over $60 million. Wood had first bought a stake in the firm during the fourth quarter of 2019.
4. Unity Software Inc. (NYSE:U)
Number of Hedge Fund Holders: 36
Percentage Decrease in Stake in Q4: 35%
Unity Software Inc. (NYSE:U) owns and runs a real-time 3D development platform. Unity Software Inc. (NYSE:U) has featured in the ARK portfolio since the third quarter of 2020. The fund owns over 7.7 million shares of Unity Software Inc. (NYSE:U) worth $1.1 billion, representing 3.35% of the portfolio.
Hedge funds remain bullish on Unity Software Inc. (NYSE:U). At the end of the fourth quarter of 2021, 36 hedge funds in the database of Insider Monkey held stakes worth $7.4 billion in Unity Software Inc. (NYSE:U), the same as in the preceding quarter worth $7.9 billion.
3. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 158
Percentage Decrease in Stake in Q4: 36%
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology company. Alphabet Inc. (NASDAQ:GOOG) has been in the ARK portfolio since the second quarter of 2020. At the end of the fourth quarter of 2021, the fund owned 17,249 shares of Alphabet Inc. (NASDAQ:GOOG) worth close to $50 million, representing 0.15% of the portfolio.
Alphabet Inc. (NASDAQ:GOOG) is a top tech stock in the finance world. Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG), with 2.9 million shares worth more than $8.5 billion.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”
2. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 91
Percentage Decrease in Stake in Q4: 52%
Tesla, Inc. (NASDAQ:TSLA) markets electric vehicles and clean energy equipment. It is one of the top holdings of ARK. The fund first purchased a stake in the company during the fourth quarter of 2016. It presently owns close to 2 million shares of Tesla, Inc. (NASDAQ:TSLA) worth more than $2 billion, representing 6.15% of the portfolio.
Hedge funds have been loading up on Tesla, Inc. (NASDAQ:TSLA) in recent months. At the end of the fourth quarter of 2021, 91 hedge funds in the database of Insider Monkey held stakes worth $12.9 billion in Tesla, Inc. (NASDAQ:TSLA), up from 60 in the previous quarter worth $10.6 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
1. NXP Semiconductors N.V. (NASDAQ:NXPI)
Number of Hedge Fund Holders: 44
Percentage Decrease in Stake in Q4: 100%
NXP Semiconductors N.V. (NASDAQ:NXPI) makes and sells semiconductor products. At the end of the fourth quarter of 2021, 44 hedge funds in the database of Insider Monkey held stakes worth $907 million in NXP Semiconductors N.V. (NASDAQ:NXPI), compared to 51 in the preceding quarter worth $1 billion.
The company had been in the ARK portfolio since the third quarter of 2018. The hedge fund started reducing this holding from the second quarter of 2021, before selling it off completely in the fourth quarter.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and NXP Semiconductors N.V. (NASDAQ:NXPI) was one of them. Here is what the fund said:
“Within IT, we have also increased exposure to a cyclical semiconductor industry currently working through a severe supply shortage due to several years of capacity reductions, COVID-19 shutdowns and one-off production delays as well as demand resilience in areas like autos and smartphones. Two recent additions, specialty semiconductor maker (including) NXP Semiconductors, was among the portfolio’s leading contributors in the first quarter. NXP rose as auto production ramped up and electric vehicle sales continued to expand.”
You can also take a peek at 10 Best Healthcare Dividend Stocks to Buy Now and 10 Dividend Stocks with Over 20 Years of Dividend Increases.
