Best Technology Value Stocks? Donald Yacktman Thinks These Are Them

Next in line is Cisco Systems, Inc. (NASDAQ:CSCO), which represents 6.21% of the fund’s portfolio value after its holding was slashed by 14% during the quarter. The stake is now comprised over 48.98 million shares valued at $1.35 billion. Cisco Systems, Inc. (NASDAQ:CSCO) is undergoing a management change this year as Chuck Robbins, the newly named CEO, plans to take over the reins from current CEO John Chambers on July 26. Robbins was also elected to the company’s board on May 1. Cisco Systems, Inc. (NASDAQ:CSCO) has a five year top-line growth rate of 5.47% compared to the industry’s average of 3.47%. Among the billionaires that we track, six held Cisco Systems, Inc. (NASDAQ:CSCO) in their respective funds’ portfolios at the end of 2014. Ken Fisher is one such billionaire money manager, who now holds 15.33 million shares of Cisco Systems, Inc. (NASDAQ:CSCO) in Fisher Asset Management’s portfolio.

Yacktman sold about 455,400 shares of Microsoft Corporation (NASDAQ:MSFT) to drop the fund’s holding to 21.53 million shares valued at $875.51 million. With its new operating system, Windows 10, which is going to go by the same name for mobile devices as it will for desktops and laptops, Microsoft Corporation (NASDAQ:MSFT) is aiming to get a billion users for it. The tech giant has also recently announced the name of its new browser, Edge, which is set to trump the decades-old Internet Explorer in terms of speed. Jeffrey Ubben’s ValueAct Capital held about 74.24 million shares of Microsoft Corporation (NASDAQ:MSFT), according to its latest filing.

Lastly, Yacktman slightly decreased his stake in eBay Inc (NASDAQ:EBAY) by some 145,300 shares to 7.94 million shares valued at $458.25 million. The technology company has an earnings multiple of 24.7, which compares favorably to the industry’s average of 42.6. Following the spin-off later this year of PayPal, eBay Inc (NASDAQ:EBAY)’s payment arm, some analysts believe that eBay will be reduced to a long-term investment, owing to its slow growth. Renowned activist investor Carl Icahn’s Icahn Capital LP held 46.27 million shares of eBay Inc (NASDAQ:EBAY)’s stock in its portfolio, according to its latest filing for the period as of the end of 2014.

Disclosure: None