In this article, we discuss the 10 stocks that crypto bull Steve Cohen is buying.
Steven Cohen, the chief of Connecticut-based Point72 Asset Management, recently joined a growing list of Wall Street billionaires who have turned from crypto skeptics to crypto bulls over the past few months. Cohen, who manages over $22 billion in assets at his hedge fund, told the attendees at a conference in New York earlier this week that his “cryptomaniac” son helped change his mind about the new technology. Cohen owns popular sports team New York Mets and has a personal net worth of more than $11 billion, per news publication Bloomberg.
Cohen is one of the most successful investors on Wall Street and the portfolio value of his fund has increased by about $800 million between March and June this year. He announced earlier this week that he was investing in Radkl, a quantitative trading firm for digital assets. Cohen Private Ventures, the family office of the investor, has also recently invested $50 million in a non-fungible tokens (NFTs) startup named Recur. At the conference in New York, Cohen said that he was building crypto-trading capabilities at his investment firm as well.
The investments highlight the potential that crypto can offer in the long term as even industry veterans turn bullish. Some of the top stocks in the portfolio of Point72 Asset Management at the end of the second quarter of 2021 were Amazon.com, Inc. (NASDAQ:AMZN), Salesforce.com, Inc. (NYSE:CRM), and Uber Technologies, Inc. (NYSE:UBER), among others discussed in detail below. The top ten holdings of the fund comprise 18% of the portfolio with investments concentrated in the technology and health sectors.
Our Methodology
With this context in mind, here is our list of the 10 stocks that crypto bull Steve Cohen is buying. These were ranked according to the investment portfolio of Point72 Asset Management at the end of the second quarter of 2021. The list was compiled according to the value of each holding in the Point72 Asset Management portfolio.
The analyst ratings of each company are also discussed to provide readers with some more context about their investment decisions. The hedge fund sentiment around each stock was gauged using the data of 873 hedge funds tracked by Insider Monkey.
Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Crypto Bull Steve Cohen is Buying These Stocks
10. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Holders: 87
Micron Technology (NASDAQ:MU) is placed tenth on our list of 10 stocks that crypto bull Steve Cohen is buying. The firm makes and sells memory and storage products and is headquartered in Idaho. According to the latest filings, Point72 Asset Management owned more than 2.2 million shares in the company at the end of June 2021 worth $187 million, representing 0.84% of the portfolio.
On July 1, investment advisory KeyBanc maintained an Overweight rating on Micron Technology stock and raised the price target to $120 from $115, noting that the firm had posted positive results and strong guidance in the second quarter.
At the end of the second quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $6.3 billion in Micron Technology, down from 100 in the preceding quarter worth $7.6 billion.
Just like Amazon.com, Inc., Salesforce.com, Inc., and Uber Technologies, Inc., Micron Technology is one of the top stock picks of crypto bull Steve Cohen.
In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted a few stocks and Micron Technology (NASDAQ:MU) was one of them. Here is what the fund said:
“Micron is a manufacturer of memory semiconductor chips. Micron appreciated 17.3% during the quarter.
With the semiconductor cycle in full swing, sentiment continued to improve for major DRAM and NAND suppliers. Spot pricing for DRAM continues its upward march due to supply shocks across the industry and sustained demand levels that continue to outstrip supply.
As a result, Micron showed improving results for the fiscal first quarter, raised guidance intra-quarter for the fiscal second quarter, and offered strong guidance for the fiscal third quarter in both growth and margins.
While the cyclical nature of DRAM hasn’t changed, the cycles themselves continue to become more benign, leading to long-term economic improvement across these businesses. Micron is now continuously profitable, with industry players in a dramatically stronger position than even just five years ago.
The biggest negative surprise in the quarter came from Micron’s exit from its 3D XPoint hybrid memory business. The company also announced its decision to sell its accompanying Utah fab. Fortunately, this development does not alter the investment thesis much since 3D XPoint was an option ticket for future growth. While it’s unfortunate this product didn’t pan out, now is an excellent time to sell a fab, so perhaps it is a blessing in disguise?”
9. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 100
Booking Holdings Inc. (NASDAQ:BKNG) is ranked ninth on our list of 10 stocks that crypto bull Steve Cohen is buying. The provides travel and restaurant reservation and related services. It operates from Connecticut. Latest data shows that Point72 Asset Management owned 86,633 shares in the company at the end of the second quarter of 2021 worth $189 million, representing 0.85% of the portfolio.
On August 5, investment advisory Credit Suisse reiterated an Outperform rating on Booking Holdings Inc. stock and raised the price target to $3,100 from $2,675, appreciating the quarterly results of the firm.
At the end of the second quarter of 2021, 100 hedge funds in the database of Insider Monkey held stakes worth $6.9 billion in Booking Holdings Inc., down from 103 in the previous quarter worth $6.8 billion.
In addition to Amazon.com, Inc., Salesforce.com, Inc., and Uber Technologies, Inc., Booking Holdings Inc. is one of the stocks that Steve Cohen is buying.
In its Q2 2021 investor letter, Nelson Capital Management, an asset management firm, highlighted a few stocks and Booking Holdings Inc. (NASDAQ:BKNG) was one of them. Here is what the fund said:
“In the consumer discretionary sector, we trimmed pandemic winners in favor of companies we believe will outperform in a recovery period. Pent-up travel demand is another investment theme we believe will flourish, prompting us to buy a position in Booking Holdings (tkr: BKNG, see Featured Equity).”
8. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 62
Analog Devices, Inc. (NASDAQ:ADI) is a Massachusetts-based firm that makes and sells integrated circuits, software, and related technologies globally. It is placed eighth on our list of 10 stocks that crypto bull Steve Cohen is buying. According to the latest filings, Point72 Asset Management owned over 1.1 million shares in the firm at the end of June 2021 worth $194 million, representing 0.87% of the portfolio.
On September 13, investment advisory Morgan Stanley resumed coverage of Analog Devices, Inc. stock with an Equal Weight rating and a price target of $179, noting that the advisory was positive on the recently completed acquisition of Maxim by the firm.
At the end of the second quarter of 2021, 62 hedge funds in the database of Insider Monkey held stakes worth $5.7 billion in Analog Devices, Inc., up from 50 the preceding quarter worth $4.8 billion.
Along with Amazon.com, Inc., Salesforce.com, Inc., and Uber Technologies, Inc., Analog Devices, Inc. occupies an important position in the portfolio of Steve Cohen.
In its Q4 2020 investor letter, Weitz Investment Management, an asset management firm, highlighted a few stocks and Analog Devices, Inc. (NASDAQ:ADI) was one of them. Here is what the fund said:
”Analog Devices benefited from several global, long-wave trends such as automation, electric vehicles and the 5G network build-out. The company’s quarterly sales into the auto, industrial and communications sectors exceeded expectations, giving the stock a lift.”
7. Jabil Inc. (NYSE:JBL)
Number of Hedge Fund Holders: 26
Jabil Inc. (NYSE:JBL) is a Florida-based firm that provides manufacturing services and solutions globally. It is ranked seventh on our list of 10 stocks that crypto bull Steve Cohen is buying. 13F filings show that Point72 Asset Management owned more than 3.4 million shares in the firm at the end of the second quarter of 2021 worth $199 million, representing 0.89% of the portfolio.
On June 18, investment advisory Citi reiterated a Buy rating on Jabil Inc. stock and raised the price target to $80 from $70, noting the recent earnings results of the firm had beaten expectations across all metrics and showed positive sales leverage.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Jabil Inc. with 1.2 million shares worth more than $69 million.
Amazon.com, Inc., Salesforce.com, Inc., and Uber Technologies, Inc. are some of the best stocks in the portfolio of Steve Cohen, just like Jabil Inc..
6. Facebook, Inc. (NASDAQ:FB)
Number of Hedge Fund Holders:266
Facebook, Inc. (NASDAQ:FB) is placed sixth on our list of 10 stocks that crypto bull Steve Cohen is buying. The company owns and runs several social media platforms and is headquartered in California. Securities filings reveal that Point72 Asset Management owned 761,765 shares in the company at the end of the second quarter of 2021 worth $264 million, representing 1.19% of the portfolio.
On September 13, investment advisory Goldman Sachs initiated coverage of Facebook, Inc. stock with a Buy rating and a price target of $455, noting that the firm was an industry leader in social media and had a utility in mobile computing as well.
At the end of the second quarter of 2021, 266 hedge funds in the database of Insider Monkey held stakes worth $42 billion in Facebook, Inc., up from 257 in the preceding quarter worth $40 billion.
Amazon.com, Inc., Salesforce.com, Inc., and Uber Technologies, Inc. are some of the top stocks in the portfolio of Steve Cohen, alongside Facebook, Inc..
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Facebook, Inc. (NASDAQ:FB) was one of them. Here is what the fund said:
“We continued to keep our learnings from 2020 in mind during the quarter as we sought to increase the up capture of the portfolio. We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks, including Facebook, while trimming our weighting to stable names, which now represent 47% of the portfolio. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”
5. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 162
Visa Inc. (NYSE:V) is ranked fifth on our list of 10 stocks that crypto bull Steve Cohen is buying. The company markets payments technology services and operates from California. According to the latest data, Point72 Asset Management owned over 1.2 million shares in the company at the end of June 2021 worth $290 million, representing 1.3% of the portfolio.
On September 3, investment advisory Morgan Stanley maintained an Overweight rating on Visa Inc. stock with a price target of $282, underlining that the Visa interchange risk from Amazon was likely to pass.
At the end of the second quarter of 2021, 162 hedge funds in the database of Insider Monkey held stakes worth $27.6 billion in Visa Inc., down from 164 in the preceding quarter worth $26.5 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Visa Inc. (NYSE:V) was one of them. Here is what the fund said:
“To make room for these new names with more attractive outlooks related to the reopening, we sold out of companies where the thesis is not playing out at the pace we expected including Visa.”
4. Western Digital Corporation (NASDAQ:WDC)
Number of Hedge Fund Holders: 57
Western Digital Corporation (NASDAQ:WDC) is a California-based company that makes and sells data storage devices and solutions. It is placed fourth on our list of 10 stocks that crypto bull Steve Cohen is buying. 13F filings reveal that Point72 Asset Management owned more than 5.8 million shares in the company at the end of the second quarter of 2021 worth over $413 million, representing 1.85% of the portfolio.
On August 5, investment advisory Craig-Hallum maintained a Buy rating on Western Digital Corporation stock and raised the price target to $101 from $95, noting that the firm had delivered better than expected results and guidance.
At the end of the second quarter of 2021, 57 hedge funds in the database of Insider Monkey held stakes worth $2.1 billion in Western Digital Corporation, down from 58 in the preceding quarter worth $1.9 billion.
ClearBridge Investments, in its Q1 2021 investor letter, mentioned Western Digital Corporation (NASDAQ:WDC). Here is what the fund has to say in its letter:
“Our high active share approach made the most difference in IT, where the portfolio’s holdings gained 4.5% compared to a loss for the benchmark. Results were led by our more cyclical positions in digital storage provider Western Digital.”
3. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 135
Uber Technologies, Inc. is a California-based proprietary technology applications firm with a large stake in the ride hailing business. It is ranked third on our list of 10 stocks that crypto bull Steve Cohen is buying. Securities filings show that Point72 Asset Management owned more than 9.3 million shares in the company at the end of June 2021 worth $469 million, representing 2.1% of the portfolio.
On September 13, investment advisory Goldman Sachs initiated coverage of Uber Technologies, Inc. stock with a Buy rating and a price target of $64, highlighting that the US internet sector still had ample opportunity for secular revenue growth.
Out of the hedge funds being tracked by Insider Monkey, California-based investment firm Altimeter Capital Management is a leading shareholder in the firm with 24 million shares worth more than $1.2 billion.
RiverPark Advisors, LLC, in its Q4 2020 investor letter, mentioned Uber Technologies, Inc. (NYSE:UBER). Here is what the fund has to say in its letter:
“UBER was also a strong contributor, as shares rallied following the approval of California’s Proposition 22 by voters, allowing the company’s California-based drivers to remain independent contractors (rather than become more expensive employees). We believe this news is not just about the 10%-15% of Uber’s revenue tied to California, but the influence this will have on other states reassessing driver pay. UBER also reported strong third quarter results with Delivery Gross Bookings growing 135% year-over-year which nearly fully offset a reduction in Mobility Gross Bookings, which were down 50% year over year. Total Gross Bookings for the quarter were down only 10% year over year as compared with down 35% last quarter.
Despite the COVID disruption, UBER remains the undisputed global leader in ride sharing (44% of the Company’s third quarter revenue), with greater than 50% share in every major region in which it operates. The company is also a leader in food delivery (46% of revenue), where it is number one or two in the more than 25 countries in which it operates. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its more than 100 million users (by comparison, Amazon Prime has 130+ million members) and penetrate new markets of on-demand services, such as grocery delivery, truck brokerage and worker staffing for shift work. At its current $96 billion market capitalization, UBER trades at only 6x next year’s revenue from its two core businesses. Additionally, the company has substantial, seemingly unrecognized, value in its several nascent development businesses and another $12 billion in equity stakes in synergistic businesses around the world.”
2. Salesforce.com, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 108
Salesforce.com, Inc. is placed second on our list of 10 stocks that crypto bull Steve Cohen is buying. The company makes and sells cloud computing solutions and is headquartered in California. Latest data reveals that Point72 Asset Management owned over 2 million shares in the company at the end of the second quarter of 2021 worth $510 million, representing 2.29% of the portfolio.
On August 27, investment advisory Loop Capital maintained a Hold rating on Salesforce.com, Inc. stock but raised the price target to $265 from $235, noting that the second quarter results and growth trajectory of the firm remained “solid”.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Salesforce.com, Inc. with 13.4 million shares worth more than $3.2 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Salesforce.com, Inc. (NYSE:CRM) was one of them. Here is what the fund said:
“We added to our software-as-a-service (SaaS) exposure with the initiation of SaaS leader salesforce.com, which develops software for customer relationship management (we added Workday, which enterprise resource planning applications, last quarter). Saleforce.com is well-positioned in the most attractive end markets in software and will benefit from secular drivers such as remote work and the digital transformation. Salesforce.com is a sustainability leader as well, with a commitment to carbon-neutral cloud, toward which it has set a goal of 100% renewable energy for global operations by fiscal year 2022. The company has a strong focus on equality, in terms of equal rights, pay, education and opportunity. As a data company it has been leading on workforce disclosures and seeks to have 50% of its U.S. workforce made up of underrepresented groups by 2024.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 271
Amazon.com, Inc. is ranked first on our list of 10 stocks that crypto bull Steve Cohen is buying. The firm operates as a diversified technology company and is headquartered in Washington. According to the latest filings, Point72 Asset Management owned 148,544 shares in the company at the end of June 2021 worth $511 million, representing 2.29% of the portfolio.
On September 13, investment advisory Goldman Sachs initiated coverage of Amazon.com, Inc. stock with a Buy rating and a price target of $4,250, underlining the selectively positive view the advisory had on the US internet sector as a whole.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Citadel Investment Group is a leading shareholder in Amazon.com, Inc. with 3.8 million shares worth more than $13 billion.
In its Q1 2021 investor letter, Hayden Capital, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said:
“Amazon (AMZN):We sold our last remaining stake in Amazon this quarter. Amazon was our longest-running investment holding, after having originally purchasing it at the inception of Hayden in 2014, at a price of ~$317.
I gave some details of how Amazon has progressed over these past 6.5 years in last year’s Q2 2020 letter, which partners can find here (LINK). The company has executed amazingly well over this tenure, with revenues up ~3.3x and since our initial purchase, and reported operating income up ~30x over that period.
Generally, I believe there are three reasons to sell an investment:1) we recognize our initial thesis is wrong (sell out as quick as possible), 2) we have a significantly higher returning opportunity to redeploy the capital into (sell-down to fund the new investment), or 3) the company is maturing and hitting the top part of it’s S-curve / business lifecycle, so the business has fewer places to reinvest its capital internally. As such, the future returns will likely be lower than the past. This investment thus becomes a “source of capital” in the future, as we fund earlier-stage investment opportunities.
In the case of Amazon, we decided to sell due to the third scenario. I’m sure Amazon will continue to generate value for shareholders and continue to keep pace with the broader technology sector. However, I’m just not confident it’s as attractive an investment as when we first invested.
With ~51% of US households having an Amazon Prime account (and with very low churn), each of these households continuing to increase their annual spend with Amazon, and few / no real competitors in sight, Amazon is a dominant force that will only continue to accrue value as consumers continue to move from offline to online purchases for their everyday needs. Likewise, the “cash-flow machine” of Amazon Web Services is in a similar position of strength, with AWS now having ~32% market share and continuing to grow at +30% y/y. Because of this, I think Amazon is probably one of the safest investments in the technology sector today.
So why did we decide to sell the investment then? Simply put, Amazon is …”read the entire letter here]
You can also take a peek at 10 Companies that Benefit From Crypto Mining and 10 Best Nickel Stocks to Buy Now.
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