Matrix Capital Increases Exposure to Tech Sector; Here Are Its Top 5 Tech Picks

#2 Workday Inc (NYSE:WDAY)

– Shares Owned by Matrix Capital Management (as of March 31): 5.11 million

– Value of Holding (as of March 31): $392.68 million

Moving on, Matrix Capital Management upped its stake in Workday Inc (NYSE:WDAY) by 29% during the first quarter. Shares of the enterprise cloud applications company suffered a huge decline at the beginning of 2016 after being range bound for over an year. However, they have recouped some of those losses in the last three months and are currently trading down 6.25% year-to-date. In the last couple of weeks, several analysts have downgraded Workday Inc (NYSE:WDAY)’s stock citing the change in accounting rules and the expensive valuation at which the stock trades at currently. Among others, analysts at Brean Capital were also a part of this downgrading spree. On May 9, they lowered their rating on the stock to ‘Sell’ from ‘Hold’ and also reduced their price target on it to $55 from $70.97, which represents a potential downside of 37% from the stock’s current trading price. Eashwar Krishnan‘s Tybourne Capital Management boosted its stake in the company by 140% to 2.95 million shares during the first quarter and was the largest shareholder of Workday Inc among funds tracked by us, at the end of that period.

#1 Netflix, Inc. (NASDAQ:NFLX)

– Shares Owned by Matrix Capital Management (as of March 31): 4 million

– Value of Holding (as of March 31): $410 million

Netflix, Inc. (NASDAQ:NFLX) is the only company in this list in which Matrix Capital Management didn’t increase its stake during the first quarter. However, despite that, it continued to remain the fund’s top stock pick at the end of that period. The multi-year bull run in Netflix, Inc. (NASDAQ:NFLX)’s stock seems to have come to an end this year with some analysts becoming skeptical of the company’s valuation and arguing that the excessive rise in the cost of content will drive down its margins going forward. Those two reasons coupled with the lower than subscribers growth that the company reported for the first quarter recently spooked  investors so much that they sold their stock in droves following the results. As a consequence of that, Netflix’s stock has plummeted in the past few weeks and currently trades down by 21% year-to-date. However, most leading analysts on the Street continue to remain bullish on the company. On May 18, analysts at RBC Capital reiterated their ‘Buy’ rating and $140 price target on the stock. Daniel Benton‘s Andor Capital Management halved its stake in the company to 200,000 shares during the first quarter.

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