In this article, we discuss the 5 stocks Billionaire David Tepper is selling. If you wish to see our detailed analysis of Tepper’s history, investment philosophy, and hedge fund performance, go directly to Billionaire David Tepper is Selling These 10 Stocks.
5. iQIYI, Inc. (NASDAQ:IQ)
Number of Hedge Fund Holders: 27
iQIY, Inc. (NASDAQ:IQ) is a leading movie and video streaming platform, providing entertainment services alongside its subsidiaries. The company is ranked fifth on the list of the 10 stocks David Tepper is selling.
Appaloosa Management had sold off its entire stake in iQIYA, Inc. (NASDAQ:IQ) in the second quarter.
On August 12, iQIYI, Inc. (NASDAQ:IQ) announced earnings for the second quarter of 2021. It declared earnings per share of -$0.27, beating the estimates by $0.05. However, revenue for the quarter was $1.2 billion, missing market predictions by $50 million. At the end of the second quarter of 2021, 27 hedge funds in the database of Insider Monkey held stakes worth $1.09 billion in iQIYI, Inc. (NASDAQ:IQ). This is compared to 40 hedge funds in the preceding quarter with stakes worth approximately $1.36 billion.
On August 13, KeyBanc analyst Hans Chung lowered his price target on iQIYI, Inc. (NASDAQ:IQ) to $19 from $26 and maintained an “Overweight” rating on the shares.
4. Discovery Inc. (NASDAQ:DISCK)
Number of Hedge Fund Holder: 35
Discovery Inc. (NASDAQ:DISCK) is a multinational mass media television company that provides content across multiple platforms. The New York-based company, ranked fourth on the list of the 10 stocks David Tepper is selling, operates a number of factual television brands, including Discovery Channel and Animal Planet, among others.
At the end of the second quarter of 2021, Appaloosa Management sold off its entire stake in Discovery Inc. (NASDAQ:DISCK), reducing its shares of the company to 0%.
On August 3, Discovery Inc. (NASDAQ:DISCK) released its quarterly earnings report for the second quarter of 2021, with reported earnings per share at $1.01, beating estimates by $0.50. The company also reported revenues of $3.06 billion, beating forecast estimates by $77.52 million. At the end of the second quarter of 2021, 35 hedge funds in the database of Insider Monkey held stakes worth $885 million in Discovery Inc. (NASDAQ:DISCK), down from 40 the preceding quarter worth $887.5 million.
In the Q2 2021 investor letter of Smead Capital, the fund mentioned Discovery, Inc. (NASDAQ:DISCK). Here is what the fund said:
“We were most negatively affected by Discovery’s (DISCK) stock backing off from their meme-stock fame of the first quarter. Their share price then weakened further by announcing a merger with Warner Media to aggregate the best of unscripted TV shows with the best of sports and scripted TV and movies.”
3. CC Neuberger Principal Holdings (NYSE:PRPB)
Number of Hedge Fund Holders: 48
CC Neuberger Principal Holdings (NYSE: PRPB) is a Special Purpose Acquisition Company (SPAC) that provides enables mergers, stock exchange and share purchases, among other services. Ranked third on the list of the stocks David Tepper is selling, CC Neuberger Principal Holdings (NYSE:PRPB) has a market capitalization of $1.07 billion.
David Tepper’s hedge fund reduced its stake in the company by 100% in the second quarter, completely selling off all its shares of CC Neuberger Principal Holdings (NYSE:PRPB).
At the end of the second quarter of 2021, 48 hedge funds in the database of Insider Monkey held stakes worth $386.6 million in CC Neuberger Principal Holdings (NYSE:PRPB).
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Glazer Capital is a leading shareholder of CC Neuberger Principal Holdings (NYSE:PRPB) with 7.3 million shares worth more than $72.37 million.
2. Baidu Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 59
Baidu, Inc. (NASDAQ:BIDU) is a multinational technology company that operates in the Chinese market and caters to internet search segments. The Chinese company ranks second on our list of the 10 stocks David Tepper is selling.
The company released its quarterly earnings report for the second quarter of 2021 on August 12, with reported earnings per share at $2.38, beating market estimates by $0.32. Additionally, the company reported revenues of $4.84 billion, crossing estimates by $51.58 million. As of the second quarter, 59 hedge funds out of 873 funds tracked by Insider Monkey held stakes in Baidu Inc. (NASDAQ:BIDU) worth $3.47 billion. This is compared to the first quarter’s 89 hedge funds with a stake of $6.57 billion.
On October 1, Arete analyst Richard Kramer upgraded Baidu Inc. (NASDAQ:BIDU) to Neutral from Sell with a $152 price target.
Horos Asset Management, in its Q1 2021 investor letter, mentioned Baidu, Inc. (NASDAQ:BIDU). Here is what the fund said:
“We have also fully exited our stake in Baidu, following their outstanding performance during the period and their lower relative upside potential compared to other investment alternatives, which we will discuss below.
The Chinese technology platform company Baidu has also been held in the portfolios managed by Alejandro, Miguel and myself for several years. During this period, we have seen very high volatility in its share price, which we have taken advantage of to make significant rebalancing moves in our position (in fact, we even sold our entire position once, when we thought the stock’s upside potential was exhausted). After several years of instability, market sentiment turned very positive, putting an end to the historical advertising problems in the healthcare sector, the divestments in O2O (Online-to-Offline) businesses that continued to weigh on the company’s margins, the IPO of part of the iQiyi streaming business (which hid Baidu’s underlying cash generation capacity) and the tough competition from other industry giants such as Tencent and Alibaba, as well as the entry of new players with disruptive business models (ByteDance). At the same time, the company’s recent commitment to electric vehicles contributed even more to this change of narrative. Baidu’s share price rose almost fourfold from the March 2020 lows to all-time highs and reached a valuation where the margin of safety, in our view, was too narrow.”
1. Adobe Inc. (NYSE:ADBE)
Number of Hedge Fund Holders: 89
Adobe Inc. (NASDAQ:ADBE) is a multinational computer software company that provides a wide range of products based around digital media and digital marketing solutions for enterprises and consumers. With a market capitalization of $275.11 billion, Adobe Inc. (NASDAQ:ADBE) is ranked first on our list of the 10 stocks David Tepper is selling.
David Tepper’s Appaloosa Management had sold off all its shares within Adobe Inc. (NASDAQ:ADBE) at the end of the second quarter period of 2021.
For the second quarter of 2021, Adobe Inc. (NASDAQ:ADBE) reported an EPS at $3.03, beating market estimates by $0.21. In addition to this, the company also reported quarterly revenues of $3.83 billion, an increase of 22.60% on a year-over-year basis, surpassing predictions by $106.49 million. At the end of the second quarter of 2021, 89 hedge funds in the database of Insider Monkey held stakes worth $13.1 billion in Adobe Inc. (NASDAQ:ADBE) down from 107 in the preceding quarter worth $12.1 billion.
In its second-quarter 2021 investor letter, Richie Capital Group mentioned Adobe Inc. (NASDAQ:ADBE). Here is what the fund said:
“Adobe Systems (ADBE – up 24.8%) – In the last 15 years, Adobe has transformed itself into a software behemoth, more than tripling its revenue since 2010. The company is famous for its namesake PDF-reader and photo-editing software Photoshop. However, ADBE sells a full suite of software products through a recurring subscription model. The company transitioned from selling boxed software to recurring subscriptions in 2013 and revenues have grown consistently since. The company achieved $13B in revenue in 2020 with 88% Gross Margins.”
You can also take a peek at the 10 Penny Stocks Redditors are Buying in August and 10 Best Small-Cap Stocks to Buy According to Hedge Funds.
