In this piece, we will take a look at the ten technology stocks to invest in according to billionaire Paul Tudor Jones. If you want to skip the details about the billionaire hedge fund owner and his firm and jump to the top five stocks in this list then take a look at the 5 Technology Stocks to Invest in According to Billionaire Paul Tudor Jones.
Paul Tudor Jones is an American investor who is at the helm of affairs at the investment firm Tudor Investment Corporation. Mr. Tudor is one of the richest hedge fund executives in the world, and his hedge fund is based out of Stamford, Connecticut, United States.
The executive has spent decades in the financial world during which he has had the opportunity to work with several firms and even a stock exchange. He completed his bachelor’s degree in economics from the University of Virginia in 1976, just a handful of years before he would proceed to set up his own investment fund. During his time at university, the now billionaire would write for his family newspaper. After graduation, he was applied to and accepted by the prestigious Harvard Business School but did not attend.
Mr. Jones’ first foray into the financial world came as a trader of commodities on the New York Stock Exchange (NYSE). During this time, he would train as a commodities trader in New Orleans. He would go on to work at another financial firm before setting up Tudor Investment Corporation in 1980.
He used his experience as a commodities trader at his new firm, and the firm’s first big break would come during the infamous Black Monday stock market crash in 1987. During the crash, Mr. Jones would bet against the market in a practice dubbed short selling which involves selling companies’ shares on the market and hoping that their price will drop. These are borrowed shares and the price differential is pocketed by the investor as profit.
A couple of years later he would prove crucial in setting up the NYSE’s financial futures division. He would also return to short selling and deliver a staggering 87% return betting against the Japanese equities market.
Paul Tudor Jones was worth $7.3 billion according to Forbes Magazine by the start of April 2022. Tudor Investment Corporation’s portfolio was worth $5.9 billion by the end of the fourth quarter of last year, and some of the well known firms in its portfolio are Apple Inc. (NASDAQ:AAPL), Zoom Video Communications, Inc. (NASDAQ:ZM), and NIKE, Inc. (NYSE:NKE).
Our Methodology
To pick out Mr. Tudor’s and his firm’s top stocks, we sifted through the hedge fund’s regulatory filings for the fourth quarter of last year. The stocks were then analyzed through their quarterly earnings, investor letters, hedge fund holdings, large shareholders, and hedge fund sentiment courtesy of Insider Monkey’s Q4 2021 survey of 924 funds.
10 Technology Stocks to Invest in According to Billionaire Paul Tudor Jones
10. ServiceNow, Inc. (NYSE:NOW)
Tudor Investment Corp’s Stake Value: $11 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.19%
Number of Hedge Fund Holders: 90
ServiceNow, Inc. (NYSE:NOW) is a technology company that is focused on providing cloud computing services to enterprises and companies. It allows its customers to manage their workflows, and use artificial intelligence, machine learning, performance analytics, and other items.
Tudor Investment Corporation held an $11 million stake in ServiceNow, Inc. (NYSE:NOW) by the end of the fourth quarter of last year. This came through owning 17,538 shares and it represented 0.19% of the firm’s investment portfolio. During the same time period, 90 of the 924 hedge funds polled by Insider Monkey had also invested in the company.
ServiceNow, Inc. (NYSE:NOW) reported $1.6 billion in revenue and $1.46 in non-GAAP EPS for its fiscal fourth quarter, in a strong set of results that saw it beat Wall Street analyst estimates for both. Citi lowered its price target to $623 from $675 in April 2022, outlining that the company has the tools in place to battle upcoming headwinds.
ServiceNow, Inc. (NYSE:NOW)’s largest investor is Chase Coleman and Feroz Dewan’s Tiger Global Management LLC which owns 2.2 million shares that are worth $1.4 billion.
ServiceNow, Inc. (NYSE:NOW) is part of Tudor Investment Corporation’s favorite stocks, with other notable picks being Zoom Video Communications, Inc. (NASDAQ:ZM), Apple Inc. (NASDAQ:AAPL), and NIKE, Inc. (NYSE:NKE)
9. Amazon.com, Inc. (NASDAQ:AMZN)
Tudor Investment Corp’s Stake Value: $12.8 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.21%
Number of Hedge Fund Holders: 279
Amazon.com, Inc. (NASDAQ:AMZN) is an American online retailer that is renowned for its digital marketplace. This marketplace allows sellers large and small to connect with customers all over the globe to sell their products, with the company being responsible for delivery. Additionally, it has also ventured into areas such as cloud computing, gadgets, and satellite internet.
Amazon.com, Inc. (NASDAQ:AMZN) reported $134 billion in revenue and $27.75 in GAAP EPS for its fiscal fourth quarter, missing analyst revenue estimates. UBS lowered its price target to $4,550 from $4,625 in April 2022, stating that despite the rising energy costs, the company is well positioned for revenue growth.
Mr. Jones’ investment firm owned 3,860 Amazon.com, Inc. (NASDAQ:AMZN) shares during Q4 2021. These led it to own a $12.8 million stake in the company, representing 0.21% of its portfolio. During the same time period, 279 out of the 924 hedge funds part of Insider Monkey’s hedge fund survey had invested in the company.
Amazon.com, Inc. (NASDAQ:AMZN)’s largest investor according to Insider Monkey’s research is Ken Fisher’s Fisher Asset Management. It owns 2 million shares that are worth $7 billion.
ClearBridge Investments mentioned the company in its fourth quarter 2021 investor letter. Here is what the firm said:
“With Amazon’s capex build largely done in 2020 and 2021, we believe it is now set up to generate robust revenue growth and margin expansion in all three of its key segments: e-commerce, cloud (AWS) and advertising. Amazon rebounded off post-invasion lows on the strength we experienced in e-commerce.”
8. NVIDIA Corporation (NASDAQ:NVDA)
Tudor Investment Corp’s Stake Value: $14.7 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.24%
Number of Hedge Fund Holders: 110
NVIDIA Corporation (NASDAQ:NVDA) is one of the most valuable semiconductor firms. It is based out of Santa Clara, California, United States. The firm is primarily involved in designing and selling graphics processing units (GPUs). These are products that work alongside a processor to compute a variety of workloads.
NVIDIA Corporation (NASDAQ:NVDA) raked in $7.6 billion in revenue and $1.32 in non-GAAP EPS for its fiscal fourth quarter, beating analyst estimates for both. Deutsche Bank lowered its price target to $255 from $285 in April 2022, as it stated that investors will remain worried about a slowdown in the semiconductor industry.
For its fourth quarter of 2021 investments, Tudor Investment Corporation owned 50,121 NVIDIA Corporation (NASDAQ:NVDA) shares which were worth $14.7 million and represented 0.24% of its portfolio. Insider Monkey analyzed 924 hedge fund holdings for Q4 2021 and discovered that 110 had bought the company’s shares.
NVIDIA Corporation (NASDAQ:NVDA) largest investor according to Insider Monkey’s research is Ken Fisher’s Fisher Asset Management which owns 5 million shares that are worth $1.5 billion.
ClearBridge Investments mentioned the company in its Q4 2021 investor letter, which outlined that:
“Gaming is an attractive end market within the media/technology sector with strong growth and a long runway, particularly in mobile gaming. Unity’s platform provides an engine and toolkit for development and monetization of games, e-commerce and industrial applications, adding to our industry exposure, which also includes Nvidia (NASDAQ:NVDA) in graphic processing chips.”
7. Snowflake Inc. (NYSE:SNOW)
Tudor Investment Corp’s Stake Value: $14.7 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.24%
Number of Hedge Fund Holders: 84
Snowflake Inc. (NYSE:SNOW) is a cloud data storage provider based out of Bozeman, Montana. The company’s platform allows its customers, which are primarily other firms, to store their data in a single place to reap the benefits of big data analysis.
Mr. Tudor’s investment firm had held a $14.7 million stake in Snowflake Inc. (NYSE:SNOW) for its Q4 2021 portfolio. This came in the form of 43,599 shares. During the same time period, 84 of the 924 hedge funds polled by Insider Monkey had bought a stake in the company.
Snowflake Inc. (NYSE:SNOW)’s fiscal fourth quarter revenue and GAAP EPS stood at $383 million and -$0.43, respectively, for a strong set of results that beat Wall Street analyst estimates for both. Atlantic set a $240 price target for the company in March 2022, stating that it has a strong value proposition and competitive position.
Brad Gerstner’s Altimeter Capital Management is Snowflake Inc. (NYSE:SNOW)’s largest investor. It owns 17 million shares that are worth $5.7 billion.
Guardian Fund mentioned the company in its fourth quarter 2021 investor letter. Here is what the fund said:
“When we read the quarterly earnings updates, we continue to be impressed by the magnitude of the reallocation of resources within society. For instance, cloud spending is expected to nearly triple by 2025. The migration to the public cloud is a massive opportunity for Snowflake, as well as dozens of companies that are still small private ventures today. The markets for digital commerce, payments, advertising, streaming of content, and information intelligence, are likely to keep compounding at double digit growth rates for the foreseeable future.
6. Cloudflare, Inc. (NYSE:NET)
Tudor Investment Corp’s Stake Value: $17.9 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.29%
Number of Hedge Fund Holders: 55
Cloudflare, Inc. (NYSE:NET) is a technology company that provides services such as security, performance, and infrastructure solutions to companies. Some of these services include firewalls, load balancing, DNS resolvers, and network ramps and filters.
Tudor Investment Corporation held 136,174 Cloudflare, Inc. (NYSE:NET) shares by the end of the fourth quarter of last year. These were worth $17.9 million and they represented 0.29% of its investment portfolio. Insider Monkey scanned 924 hedge fund holdings for Q4 2021 to find out that 55 had also owned a stake in the company.
For its fiscal Q4, Cloudflare, Inc. (NYSE:NET) reported $193 million in revenue and $0.00 in non-GAAP EPS, beating analyst revenue estimates and meeting them for the EPS. Truist lowered the company’s price target to $180 from $200 in March 2022, sharing its beliefs that while interest rate hikes have affected valuations, the company’s products are still in their early adoption stage.
D. E. Shaw’s D E Shaw is Cloudflare, Inc. (NYSE:NET)’s largest investor. It owns 2 million shares that are worth $281 million.
Cloudflare, Inc. (NYSE:NET) was mentioned by Alger in its fourth quarter 2021 investor letter, with the fund stating that:
“Cloudflare has an ambitious mission of helping to build a better internet by providing a broad range of network services to businesses of all sizes to help make their networks more secure, more reliable and less costly. The Cloudflare platform has been built from the ground up ona single software stack with a “serverless” network architecture, which has positioned the company to quickly expand its product offerings and network using commodity network hardware. By doing so, the company provides its customers with a flexible, scalable and affordable network platform.
The stock outperformed after the company reported a robust third quarter that exceeded expectations across key metrics. Cloudflare also raised its fiscal year 2021 guidance by 3%. The outperformance was driven by strong customer growth, particularly from large customers, as well as the adoption of new products by existing customers. The company added 170 large customers compared to 143 during the second quarter. Cloudflare also stated that the fourth quarter was off to a strong start including a new $1 million annual contract with a large social networking company and an $8 million deal with a large video conferencing service.”
Just like Apple Inc. (NASDAQ:AAPL), Zoom Video Communications, Inc. (NASDAQ:ZM), and NIKE, Inc. (NYSE:NKE), Cloudflare, Inc. (NYSE:NET) is a favorite Paul Tudor Jones stock pick.
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Disclosure: None. 10 Technology Stocks to Invest in According to Billionaire Paul Tudor Jones is originally published on Insider Monkey.
