Billionaire Stephen Mandel’s 10 Must-Buy Tech Stocks

Published July 7, 2022 at 10:50 am EDT Updated September 7, 2026 at 2:18 pm EDT

In this article we present the list of Billionaire Stephen Mandel’s 10 Must-Buy Tech Stocks.

Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:META), and Workday, Inc. (NYSE:WDAY) are a few of Stephen Mandel’s must-buy tech stocks for 2022.

Stephen Mandel’s Lone Pine Capital is a Connecticut-based hedge fund that was founded in 1997 by the 66-year-old Tiger Cub, who no longer actively manages the firm’s investments but remains its managing director. The fund, which applies fundamental analysis and a bottom-up approach to its investment decisions, has been incredibly successful since inception.

Mandel started his career at global consulting firm Mars & Co. in 1982, where he served as a senior consultant. He moved on to Goldman Sachs in 1984 to take up the mantle of retail analyst before landing at Julian Robertson’s Tiger Management in 1990, where he was a consumer analyst and senior managing director.

Mandel started his own firm in 1997 with seed money from Robertson and quickly turned Lone Pine into a force in the hedge fund world, generating annualized returns of 19.5% through 2020 and growing to manage $36 billion in assets. That performance has spurred Mandel to a net worth of $3.9 billion according to Forbes, which rose by $1.1 billion in a one-year span between October 2020 and October 2021.

Billionaire Stephen Mandel’s 5 Must-Buy Tech Stocks

Stephen Mandel of Lone Pine Capital

The fund has hit a rough patch in recent quarters however as some of its high-growth tech stock picks have been battered by a market that has rapidly pivoted away from speculative stocks and into safer investments. Lone Pine lost 9% last year and was down by 22% in the first quarter of 2022.

Despite the rough Q1, Mandel and his team didn’t significantly alter Lone Pine’s 13F portfolio during Q1. The fund sold out of eight positions and added nine new stocks to its portfolio during the quarter, while its sector allocation remained relatively stable, with tech and consumer discretionary stocks each accounting for close to a third of the fund’s equity exposure.

In this article we’ll take a look at Stephen Mandel’s 10 must-buy tech stocks following a challenging quarter for his fund and tech investors in general.

Our Methodology

The following data is gathered from Lone Pine Capital‘s latest 13F filing with the SEC. We follow hedge funds like Lone Pine Capital because Insider Monkey’s research has uncovered that their consensus stock picks can deliver outstanding returns.

All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q1 2022 reporting period.

Billionaire Stephen Mandel’s 10 Must-Buy Tech Stocks

10. Bill.com Holdings, Inc. (NYSE:BILL)

Value of Lone Pine Capital‘s 13F Position: $310 million

Number of Hedge Fund Shareholders: 58

Microsoft Corporation, Meta Platforms, Inc., and Workday, Inc. aren’t the only tech stocks Stephen Mandel loves, as he was particularly keen on Bill.com Holdings, Inc. (NYSE:BILL) during the first quarter. Lone Pine Capital bought 1.37 million BILL shares in Q1 to build a new stake in the software company, which provides various expense management and billing tools to its clients.

His Q1 struggles haven’t changed Mandel’s appetite for somewhat risky growth stocks, as Bill.com Holdings, Inc. fits that bill (ahem). The company isn’t expected to generate positive EPS this year or next, and is coming off a fiscal Q3 in which inflation drove its non-GAAP loss from operations to $5.67 million, a 167% increase from a year earlier. On the other hand, Bill.com has more than enough cash on its balance sheet to withstand many more quarters like that.

Bill.com Holdings, Inc. is well positioned to capitalize on the back-to-office trend, which should drive customer acquisition and is also enjoying growing adoption among financial institutions. The company’s revenue is expected to soar by 162% this fiscal year and given its high gross margins, it shouldn’t be long before the company reaches profitability.

9. Block, Inc. (NYSE:SQ)

Value of Lone Pine Capital‘s 13F Position: $405 million

Number of Hedge Fund Shareholders: 84

Stephen Mandel slashed his fund’s Block, Inc. (NYSE:SQ) position by 95% during Q4, only to come roaring back into the stock in Q1, turbocharging his stake by 976% to 2.98 million shares. Nonetheless, Block got caught up in the Q1 Tech Selloff: Hedge Funds are Dumping These 5 Stocks in 2022, as there was a 13% quarter-over-quarter drop in the number of funds long SQ.

Block, Inc. is another tech growth stock that’s been battered this year, losing 60% of its value. Fintechs like Block have been particularly hard hit this year given the mounting concerns about a recession. Block’s Q1 results were also a mixed bag. Net revenue sank by 21.6% year-over-year to $3.96 billion due to bitcoin revenue being cut in half to $1.73 billion. Adjusted earnings per share also tumbled 56% year-over-year and missed estimates.

Block, Inc.’s gross profit did rise by 34% to $1.29 billion in Q1, with both Square and Cash App showing healthy gross profit gains year-over-year. Truist Securities analyst Andrew Jeffrey recently lowered his price target on Block to $105, down by $40, but maintained a ‘Buy’ recommendation on it. The analyst believes payment processors will face near-term margin pressure, but believes Block will emerge as “the most important software integrated processor and leading neobank”.

8. Atlassian Corporation Plc (NASDAQ:TEAM)

Value of Lone Pine Capital‘s 13F Position: $412 million

Number of Hedge Fund Shareholders: 65

Lone Pine Capital bought just over 1.4 million shares of Atlassian Corporation Plc (NASDAQ:TEAM) during the first quarter, building a new stake in the IT software developer. Fellow Tiger Cub Daniel Sundheim of D1 Capital Partners also built a sizable new position in the company during the quarter. After gaining 63% in 2021, TEAM shares slumped by 16% in Q1, creating a more intriguing entry point into the stock for money managers.

Atlassian Corporation Plc has delivered strong financial results even in the midst of its stock slumping heavily this year. Revenue grew by 30% in the company’s fiscal third quarter to $740 million, while the company’s $0.50 in EPS topped estimates by $0.12. Atlassian also grew its customer base by 25% during the quarter.

While multiple Tiger Cubs were buying Atlassian Corporation Plc in Q1, the ClearBridge Investments International Growth ADR Strategy was trimming its stake in the company, explaining why in its Q1 2022 investor letter:

“The structural bucket has the shortest investment horizon across the spectrum of growth companies we target in the Strategy. We closely monitor the macro impacts and turnaround progress of these companies and will be disciplined sellers when the thesis for a holding plays out. We also trimmed back workflow software maker Atlassian after a strong runup in its shares in 2021. Most of our reductions in emerging growth have involved IT or related companies where innovation is a key to their business model. That said, we remain positive on the IT sector and have largely maintained holdings in our highest-conviction ideas.”

7. Datadog, Inc. (NASDAQ:DDOG)

Value of Lone Pine Capital‘s 13F Position: $449 million

Number of Hedge Fund Shareholders: 82

Datadog, Inc. (NASDAQ:DDOG) shares have been a hot commodity among hedge funds in recent quarters, as their ownership of the software company has risen for four straight quarters, jumping by 71% during that period. In contrast, Mandel has been trimming his stake in the company over each of the past five quarters, including by 10% in Q1, leaving Lone Pine Capital with 2.97 million DDOG shares.

Datadog, Inc. shares are down by 34% this year despite the company posting impressive Q1 results that revealed revenue that surged by 83% year-over-year to $363 million. The company expects revenue to hit $378 million in Q2, which would represent a 62% increase from the prior year. With an addressable market the company estimates as topping $50 billion by 2025, the cloud monitoring company still has a long potential growth runway ahead of it. Datadog also turned a GAAP profit in Q1 of $9.73 million after losing $13 million a year earlier.

The Baron Global Advantage Fund is bullish on Datadog, Inc.’s continued product innovation and the growing uptake of those products among its customers, sharing this about the company in its Q1 2022 investor letter:

“Another example is Datadog, the leading infrastructure monitoring, application performance monitoring and log management software platform. Datadog’s stock declined 15% during the quarter, despite reporting sparkling operational results, with revenues accelerating to a growth rate of 84% year-over-year with 33% free cash flow margins, while guiding for 2022 significantly above expectations. Datadog added 4,600 new customers in the quarter, while existing customers continued to increase their spending on Datadog products at a rapid pace with the number of customers using four or more products increasing to 33% from 22% last year. While Datadog’s stock was down, its intrinsic value has undoubtedly increased. This is enabled by rapid innovation (Datadog released 13 new products in 2021) into a market that is benefiting from the secular growth in cloud, digital transformation, and the explosion in complexity as the number of vendors, diversity of technologies and related infrastructure continued to expand.”

6. Snap Inc. (NYSE:SNAP)

Value of Lone Pine Capital‘s 13F Position: $664 million

Number of Hedge Fund Shareholders: 54

Snap Inc. (NYSE:SNAP) was Stephen Mandel’s top tech stock pick just two quarters ago and the billionaire money manager even raised his stake in the social media company by another 48% on top of that in Q4. He slashed his stake in the company by 45% in Q1 however, leaving him with 18.5 million shares. Hedge fund ownership of SNAP has plummeted by 32% over the past two quarters, with most of those funds abandoning the stock in Q4.

There’s a lot to digest surrounding Snap Inc. at the moment. The stock has slumped by 69% this year in part due to the release of disappointing guidance that was later slashed even further. The social media platform is still growing users, but that growth is slowing, and the app was recently overtaken by TikTok as the most popular among teens.

On the plus side, there is mounting pressure on Apple Inc. (NASDAQ:AAPL) and Alphabet Inc. (NASDAQ:GOOG) to ban TikTok from their app stores, with the FCC commissioner sending them a letter at the end of June in which he called TikTok a “sophisticated surveillance tool” and “serious national security threat”. A ban of TikTok would surely result in a surge of users heading over to Snap Inc., which also has a similar short-form video platform.

We’ll check out Stephen Mandel’s top 5 must-buy tech stocks in the second part of this article, linked to below, which includes Microsoft Corporation, Meta Platforms, Inc., and Workday, Inc..

5. Meta Platforms, Inc. (NASDAQ:META)

Value of Lone Pine Capital‘s 13F Position: $814 million

Number of Hedge Fund Shareholders: 204

Meta Platforms, Inc.’s shares have been crushed this year partly due to the social media’s giant disastrous metaverse initiatives, which lost billions of dollars in Q1. Ultimately, it may all be for nothing, as a recent report from research firm IDC says the company’s strategy of selling its Oculus VR headsets at a loss is unsustainable in the long run and will force the company to eventually scale back its investments in mixed-reality, which will open the door for competitors like Apple Inc. to swoop in and take over the market.

In its Q4 2021 investor letter, Boyar Value Group noted the significant amount of insider selling that billionaires like Meta Platforms, Inc.’s CEO Mark Zuckerberg were undertaking last year, presciently suggesting it could be a warning that the market had topped out:

“Corporate executives can have many different reasons for selling shares (anticipation of tax law changes, philanthropy, diversification, and much more), but the sheer number of billionaire founders who sold shares in 2021 should raise eyebrows and might well be signaling a market top. Bloomberg’s Ben Steverman and Scott Carpenter report not only that Mark Zuckerberg of Meta Platforms, Inc. (formerly known as Facebook) sold shares in his company almost every day last year but also that the founders of Google sold ~$3.5 billion worth of stock (the first time either Sergey Brin or Larry Page has sold shares since 2017).”

4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Value of Lone Pine Capital‘s 13F Position: $832 million

Number of Hedge Fund Shareholders: 83

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) represents the largest tech position added to Lone Pine Capital’s 13F portfolio during Q1. The fund bought 7.98 million shares of the company in Q1, joining a growing cadre of hedge funds that are long TSM, as ownership of the stock among hedge funds hit a new high in the first quarter.

Taiwan Semiconductor Manufacturing Company Limited shares have lost 41% in 2022 amid fears about the state of the broader chip market. TSM rebounded somewhat on July 7 thanks to Samsung’s strong quarterly results, which were buoyed by a strong showing from its own chip business, which surpassed Intel Corporation (NASDAQ:INTC)’s to become the global leader last year.

TSM also came into the limelight in early June when it was reported that a prominent Chinese economist was urging authorities to seize TSMC should China be hit with punishing sanctions as Russia has been. The economist noted TSMC’s expansion into the U.S, where it plans to build six fabs, and declared that “We must not let all the goals of the transfer be achieved.”

The Baron New Asia Fund is extremely bullish on Taiwan Semiconductor Manufacturing Company Limited, as it predicted future revenue growth above the company’s own estimates while discussing the stock in its Q1 2022 investor letter:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Ltd. detracted in the first quarter due to rising geopolitical tensions, macroeconomic uncertainties, and concerns over softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver above its 15% to 20% revenue growth target over the next several years.”

3. ServiceNow Inc (NYSE:NOW)

Value of Lone Pine Capital‘s 13F Position: $1.1 billion

Number of Hedge Fund Shareholders: 90

Lone Pine Capital pared down its stake in ServiceNow Inc (NYSE:NOW) by 2% during Q1, with the fund owning 1.98 million shares at the end of March. Hedge fund ownership of NOW peaked in the first quarter of 2021 and has dipped by 13% since. A fellow Tiger Cub, Andreas Halvorsen of Viking Global, raised the size of his NOW holding by 98% during Q1 to 440,450 shares.

A provider of cloud-based IT automation tools, ServiceNow Inc has an impressive collection of customers, which includes 80% of Fortune 500 companies. ServiceNow grew its revenue by 31% to $5.9 billion in fiscal year 2021. The company is expected to grow its subscription revenue and non-GAAP EPS by another 26% and 24% respectively in FY22. The company also raised its FY24 and FY26 subscription revenue projections this year, pushing each of them $1 billion higher to $11 billion and $16 billion respectively.

Stifel analyst Brad Reback believes ServiceNow Inc’s updated projections are “very achievable” and that the company is capable of sustaining 20%+ revenue growth over the longer-term, along with significant margin expansion. He has a ‘Buy’ rating and $550 price target on the stock.

2. Workday, Inc. (NYSE:WDAY)

Value of Lone Pine Capital‘s 13F Position: $1.23 billion

Number of Hedge Fund Shareholders: 87

Workday, Inc. is yet another cloud-based software company that Stephen Mandel loves, and one whose shares have been hit hard this year, losing 45% of their value. Workday grew its subscription revenue by 23% in its fiscal Q1 and believes that it can maintain 20% growth over the longer-term as customers adopt more of its products.

The market seemed to take issue with Workday, Inc. noting that some of its deals had to be pushed back to Q2, which could then cause a chain reaction that would delay projected Q2 deals from being completed until later in the year. The company did add several notable new customers in Q1, including Barclays, Callaway Golf and West Tennessee Healthcare. Management also noted that changing SEC disclosure regulations in regards to ESG standards are making its platform, which tracks and supports company’s ESG initiatives, a priority in boardrooms.

1. Microsoft Corporation (NASDAQ:MSFT)

Value of Lone Pine Capital‘s 13F Position: $1.54 billion

Number of Hedge Fund Shareholders: 262

Closing out the list of Stephen Mandel’s must-buy tech stocks is Microsoft Corporation, which ranks as the billionaire’s top stock pick after he raised his stake in the company by 7% during Q1 to just under 5 million shares. Microsoft easily topped the list of 15 Dow Stocks Listed and Ranked By 2022 Hedge Fund Bullishness Index, being owned by 262 funds on March 31.

Not even Microsoft Corporation has been immune from the tech selloff, as its shares have slumped by 20% this year. Microsoft has elevated itself above the other FAANG stocks in several metrics over the last few years, including its outstanding 37.6% profit margins, which not even Meta (is it MAANG stocks now?) comes close to.

Microsoft is also growing its top and bottom lines at impressive rates, with the former projected to grow by 18.5% this year, while the latter is projected for 15% growth this year and next. Given that projected EPS growth, MSFT shares currently trade at about a 24x forward P/E, the cheapest they’ve been since 2018 and well below their 5-year average of 28x.

The Carillon Clarivest Capital Appreciation Fund is bullish on Microsoft Corporation’s cloud services, having this to say about the company in its Q1 2022 investor letter:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Microsoft (NASDAQ:MSFT) reported positive results driven by personal computing strength, but analysts were especially positive on its growth outlook for its Azure cloud-computing services.”

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