In this article, we discuss the 5 stocks that crypto bull Steve Cohen is buying. If you want to read our detailed analysis of these stocks, go directly to Crypto Bull Steve Cohen is Buying These 10 Stocks.
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. (NYSE:V) 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. (NYSE:V), 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 (NASDAQ:WDC) 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 (NASDAQ:WDC), 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. (NYSE:UBER) 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. (NYSE:UBER) 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. (NYSE:CRM) 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. (NYSE:CRM) 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. (NYSE:CRM) 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. (NASDAQ:AMZN) 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. (NASDAQ:AMZN) 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. (NASDAQ:AMZN) 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]
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