In this article, we discuss 5 best stocks to buy now according to billionaire Nicholas Pritzker’s Tao Capital. If you want to see some more favorite stocks of the billionaire, click 10 Best Stocks to Buy Now According to Billionaire Nicholas Pritzker’s Tao Capital.
5. Tesla, Inc. (NASDAQ:TSLA)
Tao Capital’s Stake Value: $30,383,000
Percentage of Tao Capital’s 13F Portfolio: 9.28%
Number of Hedge Fund Holders: 91
Tesla, Inc. (NASDAQ:TSLA) is one of the most notable holdings of Nicholas Pritzker’s Tao Capital. The billionaire owns 28,750 Tesla, Inc. (NASDAQ:TSLA) shares despite slashing his stake by 50% in the fourth quarter of 2021. The $30.3 million stake accounts for 9.28% of Tao Capital’s Q4 13F securities. Tesla, Inc. (NASDAQ:TSLA) operates primarily as a manufacturer of electric vehicles and solar power solutions.
On April 8, Wedbush analyst Daniel Ives kept an Outperform rating and a $1,400 price target on Tesla, Inc. (NASDAQ:TSLA) after Elon Musk’s announcement that the company’s Austin flagship plant will employ up to 10,000 workers and manufacture the Cybertruck, the Semi, Model 3, and the core Model Y in 2023. Tesla, Inc. (NASDAQ:TSLA)’s recent achievements trump other EV players in the market, the analyst told investors in a bullish thesis.
In 2021, Tesla, Inc. (NASDAQ:TSLA)’s full-year revenue of $53.8 billion exceeded the previous year’s $31.5 billion revenue. Net income sharply increased in 2021 to $5.5 billion from $721 million in 2020.
According to Insider Monkey’s data, hedge fund sentiment around Tesla, Inc. (NASDAQ:TSLA) was extremely bullish. In the fourth quarter of 2021, 91 hedge funds were long Tesla, Inc. (NASDAQ:TSLA), compared to 60 funds in the previous quarter. ARK Investment Management is a prominent stakeholder of the company, with 1.92 million shares worth over $2 billion.
Here is what ClearBridge Investments Global Growth Strategy has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q4 2021 investor letter:
“Within the growth universe we target, emerging growth stocks – the category with the highest revenue growth rates – significantly underperformed the overall growth categories in 2021 after leading performance in 2020. The pull-through effect on digitization, online access across industries, and spending to modernize outdated corporate infrastructures accelerated trends in a highly compressed time frame. Much of that trend slackened in 2021 and shares of these companies, while showing good top-line growth, saw slowing appreciation from the blistering pace in the prior year. With that moderating growth, multiples decelerated from 2020 highs. Bucking the headwinds among our emerging growth names was Tesla which saw continued sales momentum from their leadership positions in the key growth areas of electric vehicles.”
4. IonQ, Inc. (NYSE:IONQ)
Tao Capital’s Stake Value: $34,286,000
Percentage of Tao Capital’s 13F Portfolio: 10.47%
Number of Hedge Fund Holders: 19
IonQ, Inc. (NYSE:IONQ) was founded in 2015 and is headquartered in College Park, Maryland. The company develops quantum computing systems that are accessed via cloud platforms. Nicholas Pritzker’s Tao Capital acquired a position in IonQ, Inc. (NYSE:IONQ) in Q4 2021, buying more than 2 million shares worth $34.2 million, accounting for 10.47% of the total portfolio. Overall, 19 funds were bullish on IonQ, Inc. (NYSE:IONQ) in Q4, with collective stakes amounting to $184.2 million.
On March 28, IonQ, Inc. (NYSE:IONQ) reported a revenue of $1.65 million, and the company projects 2022 revenue to be 5 times 2021’s topline. The contract bookings in 2021 increased 115% to $1.5 million, and the company expects total bookings ranging between $15 million to $22 million for 2022.
Following its Q4 results, Benchmark analyst David Williams on March 29 maintained a Buy recommendation and a $20 price target on IonQ, Inc. (NYSE:IONQ). The analyst noted that bookings trends are accelerating and FY22 bookings guidance exceeded his previous expectations, reflecting consistently increasing usage of IonQ, Inc. (NYSE:IONQ)’s platform. Williams also believes that IonQ, Inc. (NYSE:IONQ) is “tracking ahead of expectations on multiple technology fronts”.
3. Uber Technologies, Inc. (NYSE:UBER)
Tao Capital’s Stake Value: $53,874,000
Percentage of Tao Capital’s 13F Portfolio: 16.46%
Number of Hedge Fund Holders: 153
Uber Technologies, Inc. (NYSE:UBER) is a California-based company that provides mobility and transport solutions in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. Uber Technologies, Inc. (NYSE:UBER) reported on April 6 that it is going to add multiple different travel options to its U.K. app later in 2022, such as trains and flights.
Nicholas Pritzker owns 1.28 million shares of Uber Technologies, Inc. (NYSE:UBER) as of Q4 2021, worth $53.8 million, representing 16.46% of the total 13F holdings.
On April 4, Mizuho analyst James Lee maintained a Buy rating on Uber Technologies, Inc. (NYSE:UBER) with a $72 price target after Washington proposed a new law that allows gig drivers to remain as contractors but receive benefits like injury protection and paid medical leave. He reiterated Uber Technologies, Inc. (NYSE:UBER) as a top pick in the United States.
According to Insider Monkey’s Q4 data, 153 hedge funds held long positions in Uber Technologies, Inc. (NYSE:UBER), up from 143 funds in the prior quarter. The total stakes held in Q4 amounted to $10.6 billion. Tiger Global Management held the leading stake in the company, with more than 18 million shares worth $756 million.
Here is what ClearBridge Large Cap Growth Strategy has to say about Uber Technologies, Inc. (NYSE:UBER) in its Q3 2021 investor letter:
“We have also been looking for multi-year secular trends outside of the IT and Internet sectors to help us maintain a portfolio that can perform well in markets with varied sector or factor leadership. In particular, electrification of the global economy and the transition to electric vehicles (EVs) are areas where we continue to add exposure. We are investing in the brains behind EVs through NXP in the control center and Aptiv for safety features. Global rideshare leader Uber will also be a key player in the transition from internal combustion engines to EVs.”
2. Ouster, Inc. (NYSE:OUST)
Tao Capital’s Stake Value: $58,517,000
Percentage of Tao Capital’s 13F Portfolio: 17.87%
Number of Hedge Fund Holders: 19
Ouster, Inc. (NYSE:OUST) is a California-based manufacturer of high-resolution digital lidar sensors and 3D software for companies that specialize in machinery, vehicles, and robots. Tao Capital owns 11.25 million shares of Ouster, Inc. (NYSE:OUST), worth $58.5 million, accounting for 17.87% of the total Q4 securities.
Chardan analyst Brian Dobson initiated coverage of Ouster, Inc. (NYSE:OUST) on March 31 with a Buy rating and a $7 price target. Ouster, Inc. (NYSE:OUST) announced a collaboration with Tacticaware, forming a joint security solution, Ouster x Accur8vision. Ouster, Inc. (NYSE:OUST)’s 3D digital lidar technology paired with Tacticaware’s security software will penetrate the multi-billion dollar physical security market.
The company reported a Q4 revenue of $11.85 million, outperforming market consensus by $665,000. For 2022, the company expects to double the full-year revenue, aiming for a range of $65 million to $85 million.
Among the hedge funds tracked by Insider Monkey, 19 funds were bullish on Ouster, Inc. (NYSE:OUST) at the end of December 2021, compared to 20 funds in the earlier quarter. The total stakes held in Q4 amounted to $83 million.
1. Twist Bioscience Corporation (NASDAQ:TWST)
Tao Capital’s Stake Value: $64,142,000
Percentage of Tao Capital’s 13F Portfolio: 19.59%
Number of Hedge Fund Holders: 16
Twist Bioscience Corporation (NASDAQ:TWST) is a synthetic biology company that designs and sells synthetic DNA-based products. The company manufactures advanced sequencing tools by rendering DNA as a digital medium to store data.
Tao Capital owns 828,815 shares of Twist Bioscience Corporation (NASDAQ:TWST) as per the securities filings for Q4 2021, worth $64.1 million, representing 19.59% of the total investments.
On February 4, Twist Bioscience Corporation (NASDAQ:TWST) posted its financial results for the fourth quarter of 2021. The company announced a loss per share of $0.96, beating estimates by $0.10. Revenue over the period jumped 49.21% year-over-year to $42.02 million, outperforming market consensus by $3.80 million.
Cowen analyst Steven Mah assumed coverage of Twist Bioscience Corporation (NASDAQ:TWST) on March 2 with an Outperform rating. He believes that the synthetic biology space is projected to grow to mid-double digit trillions by 2025.
According to the fourth quarter database of Insider Monkey, 16 hedge funds were long Twist Bioscience Corporation (NASDAQ:TWST), with collective stakes worth $564.7 million. Paul Marshall and Ian Wace’s Marshall Wace LLP is one of the leading shareholders of the company, with a position worth $97 million.
Here is what Baron Funds has to say about Twist Bioscience Corporation (NASDAQ:TWST) in its Q2 2021 investor letter:
“We initiated a position in Twist Bioscience Corporation, a provider of synthetic DNA. The company’s proprietary semiconductor-based platform has driven its position as the low-cost provider of DNA for a variety of high-growth applications. These include the attractive areas of synthetic biology, liquid biopsy, and antibody discovery. Of note, the antibody business has the potential to become a source of high-margin royalty streams in the future. As further optionality, we believe Twist has a shot at disrupting the entire digital data storage industry with DNA-based storage.”
You can also take a look at 10 Energy Stocks to Buy Today According to Richard S. Pzena’s Pzena Investment Management and 10 Industrial Stocks to Invest In According to Ray Dalio’s Bridgewater Associates.
