In this article, we discuss the 5 stocks that Brad Gerstner is talking about. If you want to read about some more stocks that Brad Gerstner is talking about, go directly to Brad Gerstner is Talking About These 10 Stocks.
5. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 153
Uber Technologies, Inc. (NYSE:UBER) is a tech firm with core interests in ride-hailing. The company has featured in the Gerstner portfolio since the second quarter of 2019. The investor added to the initial holding 2019 and throughout 2020, but started reducing it towards the end of last year. In the last two quarters, the fund has slashed its stake in the company by more than half. At the end of the fourth quarter of 2021, the fund held 11 million shares in the firm worth over $482 million, representing 4.58% of the portfolio.
On April 19, Citi analyst Ronald Josey assumed coverage of Uber Technologies, Inc. (NYSE:UBER) stock with a Buy rating and a price target of $50, underlining that the border internet sector was healthy as consumer engagement online became more immersive.
Among the hedge funds being tracked by Insider Monkey, Boston-based Altimeter Capital Management is a leading shareholder in Uber Technologies, Inc. (NYSE:UBER) with 1.5 million shares worth more than $482 million.
ClearBridge Investments, in its Q3 2021 investor letter, mentioned Uber Technologies, Inc. (NYSE:UBER). Here is what the fund has to say in its letter:
“We have also been looking for multiyear secular trends outside of the IT and Internet sectors to help us maintain a portfolio that can perform well in markets with varied sector or factor leadership. In particular, electrification of the global economy and the transition to electric vehicles (EVs) are areas where we continue to add exposure. We are investing in the brains behind EVs through NXP in the control center and Aptiv for safety features. Global rideshare leader Uber Technologies, Inc. (NYSE:UBER) will also be a key player in the transition from internal combustion engines to EVs.”
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 158
Alphabet Inc. (NASDAQ:GOOG) is a diversified technology company. Gerstner discussed the stock during his interview with CNBC on May 3. Per the hedge fund manager, the most important takeaway from the drop in prices of growth stocks like Google was that investors should be “buying the stocks that they have been waiting to buy, hold them for a year or two, and then exit higher”. He added that those waiting for a broad correction in the value of growth firms for buying would be in the market at a time of high uncertainty.
On April 27, Wells Fargo analyst Brian Fitzgerald kept an Overweight rating on Alphabet Inc. (NASDAQ:GOOG) stock and lowered the price target to $3,400 from $3,600, noting the “mixed” first quarter results of the firm amid slowed YouTube growth.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG) with 2.9 million shares worth more than $8.5 billion.
In its Q4 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“In contrast, we made a different kind of mistake about a decade ago. Google, now Alphabet Inc. (NASDAQ:GOOG), performed very well for us while we owned it. The company kept outperforming our assumptions and we kept lowering them to be conservative. “Trees do not grow to the sky.” The stock kept going up and our value grew but did not keep pace with the stock. It hit our estimate of fair value and we sold it with a nice gain, patting ourselves on the back. We kept following Alphabet Inc. (NASDAQ:GOOG) and what they actually did over the next several years was roughly double the assumptions we used to value it. Therefore, our value was too conservative, and we sold it too cheaply, missing many years of compounding. Fortunately, we experienced some volatility several years ago that allowed us to purchase Alphabet Inc. (NASDAQ:GOOG) (Google) again with a margin of safety.”
3. Meta Platforms, Inc. (NASDAQ:FB)
Number of Hedge Fund Holders: 224
Meta Platforms, Inc. (NASDAQ:FB) is a metaverse firm that owns and runs social media platforms. Gerstner owns a large stake in the company consisting of over 2.3 million shares worth $790 million. Discussing the firm during his interview on CNBC, Gerstner backed the company to bounce back from present woes, highlighting that the firm, despite concerns around privacy and growth, had generated more than $25 billion in free cash flow and brought back $9 billion worth of stock this year, attesting to the solid growth trajectory of the stock.
On April 28, Oppenheimer analyst Jason Helfstein kept an Outperform rating on Meta Platforms, Inc. (NASDAQ:FB) stock with a price target of $305, underlining that the revenue estimates for the second quarter by the firm were in line with market estimates given the situation in Europe.
At the end of the fourth quarter of 2021, 224 hedge funds in the database of Insider Monkey held stakes worth $31.8 billion in Meta Platforms, Inc. (NASDAQ:FB), compared to 248 in the preceding quarter worth $38.5 billion.
In its Q4 2021 investor letter, Boyar Value Group, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:FB) was one of them. Here is what the fund said:
“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. (NASDAQ:FB) (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).”
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 262
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology firm. Gerstner, during his appearance on CNBC on May 3, underlined the “incredible” earnings of the company in the first quarter of 2022, noting that the cloud earnings of “hyperscalers” like Microsoft were alone $40 billion in scale. He also added that these cloud services, in which Microsoft is a leader, were growing at over 40%, smashing analyst estimates of a few years ago that had expected mid-teens growth for these businesses.
On April 27, Morgan Stanley analyst Keith Weiss maintained an Overweight rating on Microsoft Corporation (NASDAQ:MSFT) stock with a price target of $372, appreciating the growth of the Azure services offered by the firm and “robust” guidance for the fourth fiscal quarter.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT) with 26.8 million shares worth more than $9 billion.
In its Q4 2021 investor letter, Vulcan Value Partners, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“Microsoft Corporation (NASDAQ:MSFT) was a material contributor during the quarter. It is one of the highest quality companies in the world. We believe it has tremendous competitive advantages in its consumer and commercial Microsoft Office products as well as in its server and tools and Azure divisions. Over the last several years, Microsoft Corporation (NASDAQ:MSFT) has been implementing a successful transition from a traditional software license and maintenance revenue model to a subscription revenue model. The company remains competitively entrenched, produces strong free cash flow, and has a strong balance sheet.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 279
Amazon.com, Inc. (NASDAQ:AMZN) is a technology firm with core interests in ecommerce. Gerstner highlighted the potential that Amazon stock offered for investors in the long-term by affirming that the “single biggest area of investing in the public and venture market is the shift of all enterprise workloads into the cloud”. Amazon Web Services is the biggest player in this space and stands to benefit the most from it. Gerstner claimed that the “massive acceleration” in this space “will not abate anytime soon”.
On May 2, Citi analyst Christian Wetherbee maintained a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) stock with a price target of $240, noting that a UPS and Amazon partnership was “mutually beneficial” and something investors should be cheering for.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Citadel Investment Group is a leading shareholder in Amazon.com, Inc. (NASDAQ:AMZN) with 4.1 million shares worth more than $13.9 billion.
In its Q4 2021 investor letter, Davis Funds, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said:
“Within the traditional growth category, growing euphoria has led to bubble prices for many companies, most especially those with new and unproven business models such as those discussed above. In contrast, our research focuses on a select handful of proven growth stalwarts whose shares still trade at reasonable valuations. For example, because of concerns about future litigation and regulation, several dominant internet businesses, including Amazon.com, Inc. (NASDAQ:AMZN), trade at steep discounts to many unproven and unprofitable growth darlings that, in our view, trade at euphoric prices. While we expect a continued barrage of negative headlines around the company, as well as increased regulation in the years ahead, we do not expect a significant decline in its long-term profitability.”
You can also take a peek at 10 Stocks Reddit’s WallStreetBets is Buying in July 2021 and Top Robinhood Stocks Popular on Reddit.
