In this article, we discuss the 5 best investments of billionaire Peter Thiel. If you want to read our detailed analysis of Thiel’s history and performance, go directly to the 10 Best Investments of Billionaire Peter Thiel.
5. Twilio Inc. (NYSE: TWLO)
Number of Hedge Fund Holders: 99
Twilio Inc. (NYSE: TWLO) is a firm operating a cloud communications platform. It is placed fifth on our list of 10 best investments of billionaire Peter Thiel. The company’s shares have returned more than 67% to investors in the past twelve months. Thiel was one of the big names who invested in the cloud business when it was still in infancy. Thiel later sold off a majority of his stake in Twilio in 2018 amid controversy over his support for the presidency of Donald Trump that did not win him many friends in Silicon Valley.
On May 27, Twilio Inc. (NYSE: TWLO) stock was given a Buy rating by investment advisory UBS with a price target of $385, implying an upside potential of 14%, on the back of expected 30% revenue growth for the company for the next several years.
Out of the hedge funds being tracked by Insider Monkey, California-based investment firm SCGE Management is a leading shareholder in Twilio Inc. (NYSE: TWLO) with 2.7 million shares worth more than $948 million.
4. Spotify Technology S.A. (NYSE: SPOT)
Number of Hedge Fund Holders: 46
Spotify Technology S.A. (NYSE: SPOT) owns and operates one of the most popular audio streaming platforms in the world. Thiel invested in the company early on through his venture capital firm, Founders Fund. Spotify has a market capitalization of over $46 billion and more than $9.6 billion in revenue last year. It debuted on the stock market in 2018 and was valued at close to $30 billion on the first day of trading. It is ranked fourth on our list of 10 best investments of billionaire Peter Thiel.
Spotify Technology S.A. (NYSE: SPOT) stock has offered investors returns exceeding 9.7% in the past year. The company recently announced that it was launching a new live-audio chat feature called Greenroom to rival the dominance of Clubhouse in the space.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in Spotify Technology S.A. (NYSE: SPOT) with 3.1 shares worth more than $852 million.
In its Q4 2020 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks and Spotify Technology S.A. (NYSE: SPOT) was one of them. Here is what the fund said:
“At the current share price, Spotify basically only represents a fraction of the value they will be able to unlock in the growing market of audio entertainment. The key for Spotify is to change a variable cost base into a fixed cost base just like Netflix has. As the market share of the big labels, measured by the daily hours of engagement of the big labels, is declining, Spotify will be able to adjust its business model and create enormous operational leverage meaning that profitability will grow faster than expenses.
The music catalogue is not the business model. The value lies in the machine learning that drives discovery and engagement, the original content from people like Michelle Obama, Kim Kardashian, and Joe Rogan, the data analytics and distribution for artists, the direct and social relations artists can have with fans through music and videos. We believe that Spotify will be worth at least five times more in 2030.”
3. Palantir Technologies Inc. (NYSE: PLTR)
Number of Hedge Fund Holders: 32
Palantir Technologies Inc. (NYSE: PLTR) is a software company that focuses on big data analytics. Thiel was one of the founding members of the company and helped it to a public listing in September 2020. The firm was valued at close to $20 billion on the first day of trading. However, it has since climbed to more than $45 billion in market capitalization. Regulatory filings reveal that Founders Fund owned a 17.7% stake in the firm before the IPO. News platform Forbes estimated that Thiel directly owned an 8% stake in the firm worth close to $2 billion.
Palantir Technologies Inc. (NYSE: PLTR) is placed third on our list of 10 best investments of billionaire Peter Thiel. The company’s shares have returned more than 22% to investors over the past month.
At the end of the fourth quarter of 2020, 32 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Palantir Technologies Inc. (NYSE: PLTR), down from 38 in the preceding quarter worth $1.9 billion.
In its Q4 2020 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks andPalantir Technologies Inc. (NYSE: PLTR) was one of them. Here is what the fund said:
“In October, we bought a stake in Palantir. Earlier, in June, our concentrated Tech Fund, which has a mandate to also buy shares in the secondary market, bought shares of Palantir from insiders, before the direct listing. At the price we bought, the equity had much more upside than downside. Palantir is operating a software platform that functions as the digital infrastructure for data-driven operations and decision making. The software helps to structure and capture context in data of large corporations. Governments are increasingly realizing that they have to deal with serious data challenges and cyber risk. As most governments cannot attract the most talented software engineers, they need private enterprises such as Palantir to help them build solid infrastructure. Foundry, Palantir’s software for enterprises, is used by companiesto make safer cars and airplanes or to accelerate cancer research. The speed to bring new clients on board is improving and revenues will grow faster than expenses. Palantir has a long runway of growth ahead.”
2. PayPal Holdings, Inc. (NASDAQ: PYPL)
Number of Hedge Fund Holders: 143
PayPal Holdings, Inc. (NASDAQ: PYPL) is a payments company that facilitates cross-border transactions at low fees. Thiel was a founding member of the company that represents one of his most successful investments to date. PayPal was sold to ecommerce platform eBay in 2002 for $1.5 billion, a mere four years after it was founded. The company is ranked second on our list of 10 best investments of billionaire Peter Thiel. The stock has returned more than 65% to investors in the past twelve months.
PayPal Holdings, Inc. (NASDAQ: PYPL) stock has been sliding in recent weeks amid a broader bear market around crypto stocks. The firm recently announced that it would soon allow third party wallet transfers of Bitcoin in a bid to boost crypto transactions on its platform.
At the end of the first quarter of 2021, 143 hedge funds in the database of Insider Monkey held stakes worth $14.7 billion in PayPal Holdings, Inc. (NASDAQ: PYPL), down from 147 in the preceding quarter worth $15.9 billion.
In its Q4 2020 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ: PYPL) was one of them. Here is what the fund said:
“For the full year 2020, one of the top performers was PayPal, which we purchased in 2019, the company continues to take market share in digital payments and has seen an acceleration in user adoption and engagement, especially within their “silver tech” or older user demographic. We expect many more years of ongoing double-digit growth from their various business segments and new initiatives.”
1. Facebook, Inc. (NASDAQ: FB)
Number of Hedge Fund Holders: 257
Facebook, Inc. (NASDAQ: FB) is a technology company that owns and runs some of the most famous social media applications in the world. Thiel invested $500,000 in the company in 2004, gradually increasing his stake in the firm before making a handsome profit when he sold almost all of it for $11.3 million in 2020. Theil has been a long-time board member of the tech giant and still serves on it despite shedding close to 80% of his holdings in the company. The stock has returned more than 42% to investors in the past year.
Facebook, Inc. (NASDAQ: FB) is placed first on our list of 10 best investments of billionaire Peter Thiel. The company has been stepping up investments in virtual reality products in recent years, reportedly testing ads inside VR headsets it is said to be developing.
At the end of the first quarter of 2021, 257 hedge funds in the database of Insider Monkey held stakes worth $40 billion in Facebook, Inc. (NASDAQ: FB), up from 242 in the preceding quarter worth $38 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Facebook, Inc. (NASDAQ: FB) was one of them. Here is what the fund said:
“We continued to keep our learnings from 2020 in mind during the quarter as we sought to increase the up capture of the portfolio. We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks, including Facebook, while trimming our weighting to stable names, which now represent 47% of the portfolio. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”
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