Reduced Stake in Online Travel Company
Coleman and his team have also decided to cut exposure to Priceline Group Inc (NASDAQ:PCLN) and have reduced the fund’s holding of the stock by 28% to 550,898 shares. At the end of the first quarter, this position was reportedly worth approximately $710 million. In the mean time, Lee Ainslie and Maverick Capital were buying Priceline shares left and right, boosting their investment to 262,612 shares worth $338 million. Priceline Group Inc (NASDAQ:PCLN) stock stumbled in the beginning of May despite better-than-expected results for the first quarter. The problem was the company’s outlook for the second quarter: earnings between $11.60 and $12.50 per share, while analysts had projected $14.98 per share. For the first quarter, Priceline Group Inc (NASDAQ:PCLN) reported revenues of $2.15 billion and a profit of $10.54 per share, topping Wall Street’s estimates of $9.66 per share on $2.12 billion in revenues. The stock is currently trading at a trailing P/E ratio of 25, below industry average P/E of 37 as reported by Yahoo! Finance.
Amazon out of Favor
Tiger Global has also dumped 68% of its stake in Amazon.com, Inc. (NASDAQ:AMZN), which represented its largest position at the end of the fourth quarter. According to its latest 13F filing, the fund now holds 1.04 million shares valued at $618 million. Alex Snow and his fund, Lansdowne Partners, are betting big on Amazon.com, Inc. (NASDAQ:AMZN) having invested more than 10% of their capital in the e-commerce giant. According to its quarterly report, Lansdowne Partners currently holds 2.2 million shares of Amazon, up by 19% from the previous quarter and valued at $1.31 billion. Although it fell by more than 25% in the first few weeks of 2016, the stock quickly recovered the lost ground and is now 8.3% in the green for the year. A big boost to the current rally was provided by the company’s financial success in the first quarter. Amazon.com, Inc. (NASDAQ:AMZN) posted a profit of $513 million or $1.07 per share and $29.13 billion in revenue, smashing through analysts’ expectations of $27.98 billion in revenue and $0.58 per share. This was also a huge jump from the $0.12 per share loss reported for the same quarter in 2015. Operating cash flow rose by 44%, while revenue generated by the cloud business surged by 64%, making it the company’s most profitable business.