#3. Priceline Group Inc. (NASDAQ:PCLN)
– Shares Owned by Tiger Global Management (as of March 31): 550,898
– Value of Tiger Global Management’s Holding (as of March 31): $710.09 Million
– Q2 Return: -3.2%
The New York-based hedge fund also trimmed its position in Priceline Group Inc. (NASDAQ:PCLN) during the March quarter, by 27% to 550,898 shares. The reshuffled positon was worth $710.09 million at the end of the first quarter and made up 10.2% of the value of the fund’s public equity portfolio. Priceline dominates the online travel services market, offering hotel booking, car rentals, and flight reservations online through several well-known sites such as Booking.com, Agoda.com, and Vilas.com, among others. The company’s Booking.com is the largest travel booking site in the world, generating a high portion of the company’s revenue. In late June, analysts at Morgan Stanley upgraded Priceline to ‘Overweight’ from ‘Equal Weight’ and upped their price target on the stock to $1,525 from $1,330, saying that the two leading online travel agencies, that being Priceline and its rival Expedia Inc. (NASDAQ:EXPE), “show the first signs of acting as rational players in a global duopoly.” Priceline’s stock is up by 5% so far in 2016 despite losing 3% during the second quarter. Ray Carroll’s Breton Hill Capital owns 1,180 shares of Priceline Group Inc. (NASDAQ:PCLN) as of June 30.
#2. JD.Com Inc. (ADR) (NASDAQ:JD)
– Shares Owned by Tiger Global Management (as of March 31): 44.01 Million
– Value of Tiger Global Management’s Holding (as of March 31): $1.17 Billion
– Q2 Return: -19.9%
Tiger Global owned 44.01 million American Depositary Shares of JD.Com Inc. (ADR) (NASDAQ:JD) at the end of the first quarter, 15.61 million ADS’s less than at the end of 2015. The Chinese online retailer has lost 32% of its market value in 2016, as China’s slowing economy and fast-toughening e-commerce competition hinder the company’s expansion. JD.Com’s first-quarter revenue growth fell to 47%, a decline of ten percentage points year-over-year. Furthermore, the company’s net loss widened to $0.10 per share from a net loss of $0.08 posted a year earlier. As the Chinese economy slows and JD.Com’s main online shopping rival Alibaba Group Holding Ltd (NYSE:BABA) continues to put margin pressure on it, JD.Com may have a hard time turning a profit in the near future. Ken Fisher’s Fisher Asset Management owns 8.12 million ADS’s of JD.Com Inc. (ADR) (NASDAQ:JD) as of June 30, as compared to 2.27 million ADSs as of March 31.
#1. Netflix Inc. (NASDAQ:NFLX)
– Shares Owned by Tiger Global Management (as of March 31): 18.00 Million
– Value of Tiger Global Management’s Holding (as of March 31): $1.84 Billion
– Q2 Return: -10.5%
Netflix Inc. (NASDAQ:NFLX) was the largest equity holding in Tiger Global Management’s public equity portfolio at the end of March, accounting for 26.5% of that portfolio’s value. The Netflix position was unchanged during the first quarter, with the nearly 18.00 million-share stake being valued at $1.84 billion on March 31. Netflix shares were down by 10% in the second quarter, and the news has gone from bad to worse, as shares crumbled by 13% after-hours yesterday, following the release of Netflix’s second quarter earnings report.
Netflix had anticipated adding 500,000 new domestic subscribers and 2.00 million international subscribers in the second quarter, the latter of which would’ve been down from 2.4 million international additions recorded a year earlier. However, Netflix widely missed even those marks, adding just 1.7 million worldwide subscribers during the quarter, 1.53 million of which were international subs. Thus, the fears of some investors that the market for the world’s leading video streaming service is getting saturated have come true. Andreas Halvorsen’s Viking Global had 8.06 million shares of Netflix Inc. (NASDAQ:NFLX) in its portfolio at the end of March.