In this article, we will take a look at billionaire Stephen Mandel’s top 5 stock picks. You can see our detailed analysis of Mandel’s history, investment philosophy, and hedge fund performance at Billionaire Stephen Mandel’s Top 10 Stock Picks.
5. Snap Inc. (NYSE:SNAP)
Lone Pine Capital’ Stake Value: $1.56 billion
Percentage of Lone Pine Capital’s 13F Portfolio: 4.93%
Number of Hedge Fund Holders: 64
Snap Inc. (NYSE:SNAP) comes in at fifth on the list of billionaire Stephen Mandel’s top 10 stock picks. The firm operates as social media and camera-based communication company. Some of the company’s most notable products include Snapchat and Bitmoji.
During the second financial quarter, 64 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in Snap Inc. (NYSE:SNAP) worth $5.4 billion. Stephen Mandel’s Lone Pine Capital holds over 22.94 million shares of the company, worth more than $1.56 billion, representing 4.93% of the fund’s total portfolio value.
On October 18, KeyBanc analyst Justin Patterson raised his price target on Snap Inc. (NYSE:SNAP) to $90 from $88, and maintained an Overweight rating on the shares of the company.
Here is what RiverPark Funds has to say about Snap Inc. in its Q2 2021 investor letter:
“Snap shares were a top contributor for the quarter as well, also driven by strong first quarter results. The company reported accelerating revenue growth of 66% for the period (up from 62% fourth quarter growth), driven by user growth of 22%, and a 36% expansion in average revenue per user (ARPU). The company also guided to stronger-than-expected and accelerating 81%-85% revenue growth for second quarter 2021. Adjusted EBITDA improved by $79 million year over year for a break-even margin, up 1,800 basis points, and free cash flow improved dramatically, turning positive for the period to $126 million. Snap also continued to roll-out products that should help drive further expansion in user growth and ARPU, including Spotlight, a TikTok-like experience, with more than 125 million Snapchatters using it during March, and original programming starring Ryan Reynolds.
With TTM of $2.8 billion in revenue and an ARPU that is about 1/2 that of Twitter and 1/3 that of Facebook, we believe Snap has a long runway for both revenue growth and expanded profitability as it improves its platform functionality, grows its audience, and continues to advance its monetization.”
4. Amazon.com, Inc. (NASDAQ:AMZN)
Lone Pine Capital’ Stake Value: $1.66 billion
Percentage of Lone Pine Capital’s 13F Portfolio: 5.26%
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational company that specializes in e-commerce, cloud computing, digital streaming and artificial intelligence. The company is ranked fourth on the list of billionaire Stephen Mandel’s top 10 stock picks.
There were 271 hedge funds in the database of Insider Monkey that held stakes in Amazon.com, Inc. (NASDAQ:AMZN) worth $60.49 billion in the second quarter of 2021, compared to 243 funds in the first quarter with total stakes amounting to approximately $50.4 billion. Stephen Mandel of Lone Pine Capital held 484,741 shares in the company by the end of the quarter. These shares are valued at $1.66 billion and account for 5.26% of his fund’s total investment portfolio.
On October 21, Baird analyst Colin Sebastian maintained an Outperform rating, alongside a $4,000 price target on Amazon.com, Inc. (NASDAQ:AMZN) shares.
Madison Funds, in its Q3 2021 investor letter, mentioned Amazon.com, Inc. (NASDAQ:AMZN). Here is what the fund had to say:
“We did add a modest new position weight to the portfolio in the quarter in Amazon.com, Inc. stock (AMZN). We acknowledge that many aspects of Amazon’s merit as an investment are well appreciated. However, our work leads us to conclude that shares are attractive. Leadership positions in both e-commerce and cloud computing provide the company with significant durable competitive advantages in industries that we think can produce above average growth over the next decade. Over the past year, AMZN shares have trailed the market as investors debate near-term growth prospects following the pandemic-induced e-commerce demand. Additionally, margins have been depressed due to Amazon’s unprecedented increases in spending to build out fulfillment and in-house logistics capabilities – Amazon will build out more square footage this year and last than it did cumulatively over the previous 10 years, more than doubling its in-house delivery capacity. We like the investments Amazon is making and believe they will further advantage the company relative to other retailers, making it nearly impossible for competitors to match the same level of delivery speed and convenience. With its large and frequently engaged customer base, Amazon has multiple mechanisms to make money, including selling advertising and enhanced subscription services. Within the cloud business, we forecast Amazon Web Services (AWS) leveraging its strengths in Infrastructure-as-a-service (IaaS) to move into higher value segments of cloud computing (such as platform-as-a-service: PaaS), allowing the company to continue outgrowing the overall IT sector with strong profitability. While Amazon shares have performed extremely well over the long-term, we think near-term concerns about whether Amazon will earn a return on its accelerated investments provide an opportunity now for investors willing to look through the investment period. Our view is that the investments likely earn strong returns and extend Amazon’s competitive advantages and aboveaverage growth.”
3. Facebook, Inc. (NASDAQ:FB)
Lone Pine Capital’ Stake Value: $1.73 billion
Percentage of Lone Pine Capital’s 13F Portfolio: 5.47%
Number of Hedge Fund Holders: 266
As of the end of the second quarter, 266 hedge funds tracked by Insider Monkey reported owning stakes in Facebook, Inc. (NASDAQ:FB). The total worth of these stakes is $42.34 billion. This shows the hedge fund sentiment is positive for the social media company as 257 funds had stakes in the company in the previous quarter, with a total worth of $40.96 billion.
As of Q2 2021, Stephen Mandel’s Lone Pine Capital holds over 4.98 million shares of Facebook, Inc. (NASDAQ:FB), amounting to more than $1.73 billion in worth and representing 5.47% of the fund’s total portfolio value.
On September 30, RBC Capital analyst Brad Erickson initiated coverage of Facebook, Inc. (NASDAQ:FB) with an Outperform rating alongside a $425 price target on the company’s shares.
First Eagle Investment Management, an investment management firm, In its Q2 2021 investor letter stated that Facebook, Inc. (NASDAQ:FB) was among the leading contributors in the fund’s portfolio for the quarter. Here is what the fund said:
“Leading contributors in the First Eagle Global Fund this quarter included Facebook, Inc. Class A. Facebook has continued to post impressive results for both revenue and active users of its traditional platforms. In the meantime, the social media giant continues to make progress on new initiatives—like Facebook Horizon (virtual reality) and Facebook Shops (e-commerce)—and maintains attractive monetization optionality around services like Messenger and WhatsApp.”
2. Bath & Body Works, Inc. (NYSE:BBWI)
Lone Pine Capital’ Stake Value: $1.89 billion
Percentage of Lone Pine Capital’s 13F Portfolio: 5.97%
Number of Hedge Fund Holders: N/A
Bath & Body Works, Inc. (NYSE:BBWI) is an international retail company involved in the sales of personal care and beauty products throughout the United States.
On September 27, Atlantic Equities analyst Daniela Nedialkova upgraded Bath & Body Works, Inc. (NYSE:BBWI) to Overweight from Neutral with an $82 price target.
According to the latest filings, Lone Pine Capital owned over 26.26 million shares in the firm at the end of June 2021 worth more than $1.89 billion, representing 5.97% of the portfolio.
1. Shopify Inc. (NYSE:SHOP)
Lone Pine Capital’ Stake Value: $2.38 billion
Percentage of Lone Pine Capital’s 13F Portfolio: 7.53%
Number of Hedge Fund Holders:
Shopify Inc. (NYSE:SHOP) is a multinational e-commerce company based in Ontario. The company provides an e-commerce platform for online stores and retail point-of-sale systems.
By the end of the second quarter of 2021, 85 hedge funds out of the 873 tracked by Insider Monkey held stakes in Shopify Inc. (NYSE:SHOP) worth roughly $13.97 billion. This is compared to 91 hedge funds in the previous quarter with a total stake value of approximately $9.98 billion.
Stephen Mandel of Lone Pine Capital currently holds over 1.63 million shares in Shopify Inc. (NYSE:SHOP). These shares amount to more than $2.38 billion and represent 7.53% of the fund’s investment portfolio.
On October 14, TD Securities analyst Daniel Chan initiated coverage of Shopify, Inc. (NYSE:SHOP) with a Hold rating and $1,500 price target.
In the Q2 2021 investor letter of ClearBridge Investments, the fund mentioned Shopify Inc. (NYSE:SHOP). Here is what the fund said:
“Shopify (is one of the) companies that have become go-to platforms for small and medium size businesses (SMBs) engaged in e-commerce and social media marketing, rebounded strongly in the quarter after being caught in the selloff among high-multiple growth names since Vaccine Monday. These and the portfolio’s other disruptors had thrived through the first part of the pandemic, leading us to trim positions into strength and reallocate cash into more attractively priced evolving opportunities and steady compounders that had been overly punished by lockdowns and a drop in economic activity.”
You can also view Top 10 Stocks to Invest in According to John Smith Clark’s Southpoint Capital Advisors and Carl Icahn’s Stock Portfolio: Top 12 Picks.
