This Is How Billionaire Stephen Mandel’s Fund Gears Its Portfolio for Internet Age

#2 Amazon.com, Inc. (NASDAQ:AMZN)

– Shares Owned by Lone Pine Capital (as of December 31): 2.21 million

– Value of Holding (as of December 31): $1.49 Billion

Lone Pine has held a stake in Amazon.com, Inc. (NASDAQ:AMZN) since the third quarter and the stock price is up by more than 12% since the end of September 2015. However, the stock has declined by 17% year-to-date amid a broader market sell-off and on the back of weaker-than-expected fourth-quarter results that missed both EPS and revenue estimates. Lone Pine hiked its stake in the e-commerce giant by 13% during the fourth quarter. Recently Canaccord Genuity has upgraded Amazon to ‘Buy’ from ‘Hold’ increasing its price target to $750, which provides an upside potential of more than 40%. The company has been trying to revolutionize its delivery system and is testing drones for its Amazon Prime Air delivery service in the United Kingdom, Canada and the Netherlands. Moreover, it has recently been reported that, in order to slash its surging shipping costs, Amazon is now quietly inviting drivers to participate in its ‘on-demand’ delivery service for standard packaging. The program is similar to Amazon Flex, which handles speedy deliveries of household items to Amazon Prime Now members. Andreas Halvorsen’s Viking Global held 2.57 million shares of Amazon.com, Inc. (NASDAQ:AMZN) at the end of the last year.

#1 Microsoft Corporation (NASDAQ:MSFT)

– Shares Owned by Lone Pine Capital (as of December 31): 27.26 million

– Value of Holding (as of December 31): $1.51 Billion

During the fourth quarter, Lone Pine increased its holding in Microsoft Corporation (NASDAQ:MSFT) by 7%. The stock price of the Redmond-based tech giant is up by more than 20% in the last 12 months, which is significantly higher than the 6% gain registered by the software industry during the same period. In six months after its launch Microsoft Corporation (NASDAQ:MSFT)’s Windows 10 had been downloaded on more than 200 million devices, a record for the company. This is even more impressive if we take into account the declining PC market. The company also registers substantial growth in its cloud segment, with Azure revenue posting a 140% annual growth for the last quarter. Jeffrey Ubben‘s ValueAct Capital reported ownership of more than 56.62 million shares of Microsoft Corporation (NASDAQ:MSFT) in its latest 13F filing.

Disclosure: None