In this article, we discuss the 5 best tech stocks to buy according to billionaire Ken Griffin. If you want to read our detailed analysis of Ken Griffin’s history and views on the latest market situation, go directly to 10 Best Tech Stocks to Buy According to Billionaire Ken Griffin.
5. Alphabet Inc. (NASDAQ:GOOG)
Citadel Investment Group’s Stake Value: $371.33 million
Percentage Of Citadel Investment Group’s 13F Portfolio: 0.07%
Number of Hedge Fund Holders: 160
Up next is Alphabet Inc. (NASDAQ:GOOG), which represents 0.07% of Ken Griffin’s Q1 portfolio with nearly 134,000 shares priced at $371.3 million. In total, 160 hedge funds from Insider Monkey’s Q1 database were long on GOOG shares, in contrast to 158 hedge funds a quarter ago.
On June 1, Morgan Stanley analyst Brian Nowak reiterated an ‘Overweight’ rating on Alphabet Inc. (NASDAQ:GOOG) shares, and lowered the price target to $3,000 from $3,270 owing to a more conservative online advertising and e-commerce view amid “rising macro and micro uncertainty.” Morgan Stanley now pegs the probability of recession at 35%, as opposed to 5% at the start of the year. As of June 27, shares of Alphabet Inc. (NASDAQ:GOOG) are down 18.29% in the year to date.
For the quarter ending March, Alphabet Inc. (NASDAQ:GOOG) posted EPS which fell below estimates by $0.94. However, quarterly revenue of $68 billion was above analysts’ predictions by $121.3 million and showed year-on-year growth of 22.95%.
Here is what Farrer Wealth Advisors had to say about Alphabet Inc. (NASDAQ:GOOG) in its Q1 2022 investor letter:
“Alphabet: We won’t waste much time trying to explain to our clients why Alphabet is such a phenomenal business, we believe that is quite self-evident. The better explanation is why we never bought Alphabet before. The reason was a personal bias we held based on three beliefs (which we now believe to be incorrect)
Growth in YouTube would stall as the increased ad-load would turn-off viewers (the double ad-load at the beginning of videos for example). Consumers will focus on discovery rather than search to purchase new items. For example – using Instagram/TikTok to decide what new clothes to buy instead of ‘googling’ for clothes. Other Bets: In general, we felt that capital spent on “Other Bets” has been a bit wasteful with the segment earning just around $3.1bn in revenue versus nearly $21bn in operating losses over the last five years…” (Click here to see the full text)
4. T-Mobile US, Inc. (NYSE:TMUS)
Citadel Investment Group’s Stake Value: $404.27 million
Percentage Of Citadel Investment Group’s 13F Portfolio: 0.08%
Number of Hedge Fund Holders: 91
T-Mobile US, Inc. (NYSE:TMUS) offers mobile and data connectivity services in the United States. It was given a ‘Buy’ rating by Tigress Financial analyst Ivan Feinseth on June 24, with an increased price target of $195 from $185. The analyst sees the firm’s growth momentum continuing to accelerate amid ongoing demand for high-speed network connectivity. If subscriber growth remains strong, Feinseth thinks T-Mobile could potentially begin its $60 billion share repurchase program later this year. On June 21, the company announced the expansion of its wireless service agreement with Dish Network (NASDAQ:DISH) which was initially made in 2020 and offers Dish network’s brands with access to T-Mobile’s 5G network. As of June 27, T-Mobile US, Inc. (NYSE:TMUS) stock has gained 19.79% in the year so far.
Ken Griffin’s Citadel Investment Group, according to regulatory filings for the first quarter, owned 3.14 million shares of T-Mobile US, Inc. (NYSE:TMUS) at a value of $404 million, up 89% over the previous quarter where the fund owned 1.67 million TMUS shares. The larger hedge fund industry was also eager on T-Mobile US, Inc. (NYSE:TMUS) in the first quarter, where 91 hedge funds owned positions in the firm, as compared to 86 hedge funds in the previous quarter.
For the first quarter of 2022, T-Mobile US, Inc. (NYSE:TMUS) posted earnings per share of $1.41, outperforming estimates by $1.05. However, revenue of $20.12 billion for the quarter fell below expectations by $16.9 million.
ClearBridge Investments, an investment management firm, talked about T-Mobile US, Inc. (NYSE:TMUS) in its Q4 2021 investor letter. Here is what the fund said:
“As mentioned, the communication services sector has come under some pressure, and irrational pricing competition has negatively impacted wireless industry growth and profitability of late, weighing on T-Mobile. Faced with these headwinds, and with pressure from other wireless carriers and cable companies that could cause the company to cede share in subscriber growth in 2022, we exited our position in the fourth quarter.”
3. Accenture Plc (NYSE:ACN)
Citadel Investment Group’s Stake Value: $465.44 million
Percentage Of Citadel Investment Group’s 13F Portfolio: 0.09%
Number of Hedge Fund Holders: 63
Accenture Plc (NYSE:ACN) is a global giant in the field of information technology consulting and services. It serves clients in more than 120 countries around the globe, in sectors such as insurance, finance, healthcare, media, energy, travel, automobile manufacturing and retail. Three quarters of all Fortune Global 500 companies count among the clients of Accenture Plc (NYSE:ACN).
RBC Capital analyst Daniel Perlin on June 24 reiterated an ‘Outperform’ rating on Accenture Plc (NYSE:ACN) shares and revised the price target to $357 from $435. The company posted a strong quarter which saw double-digit growth across all services, according to the analyst, who sees the firm’s bookings growth remaining solid, with 10% year-on-year growth in new bookings. As of June 27, Accenture Plc (NYSE:ACN) pays a dividend yield of 1.31% to shareholders.
As of the end of the first quarter of 2022, 63 hedge funds were long Accenture Plc (NYSE:ACN) with combined stakes worth $3.95 billion. This shows a positive trend from the previous quarter where 50 hedge funds were stakeholders in the company. With a $770 million position, Ako Capital was the leading shareholder of Accenture Plc (NYSE:ACN) in the first quarter of 2022.
Here is what Polen Capital, an asset management firm, had to say about the prospects and market position of Accenture plc (NYSE:ACN) in its Q1 2022 investor letter:
“Accenture’s business is firing on all cylinders and continue to enjoy an acceleration in their respective fundamentals because of the increase in digitization around the world. Nearly every company today is searching for ways to become more digital, and Accenture is positioned to provide many of the solutions these companies seek. This inflection in fundamentals was not lost on the market, and each business’s stock performed exceptionally well in 2021. In fact, they represented two of the three top absolute performers for the Global Growth Portfolio last year. As a result, its stock is currently more fully priced. As such, we lowered Accenture to an average weight. We maintain high conviction in the business and plan to own it for many years, but recognize the increase in their prices.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Citadel Investment Group’s Stake Value: $574.11 million
Percentage Of Citadel Investment Group’s 13F Portfolio: 0.11%
Number of Hedge Fund Holders: 271
With 271 long hedge fund bets, Amazon.com, Inc. (NASDAQ:AMZN) is the most popular stock to hold according to the Q1 database of Insider Monkey which tracks a total of 912 hedge funds. Ken Griffin’s stake in the company was worth $574 million in the first quarter of 2022, representing 0.11% of his overall portfolio.
On June 16, Amazon.com, Inc. (NASDAQ:AMZN) announced that its annual Prime Day would be held on July 12 and subsequently kicked off promotions for the day. Prime Day is one of the largest online sales in the US, and offers Amazon Prime members with access to exclusive mega sales and discounts. Jefferies analyst Brent Thill estimates that Prime Day will contribute a 6% and 4% boost to Q3 GMV (gross merchandise volume) and sales growth, respectively. He also sees the mega sale helping drive Amazon Prime adoption, especially in international markets. The analyst gave Amazon.com, Inc. (NASDAQ:AMZN) an unchanged ‘Buy’ rating on June 27, along with a $163 price target.
In Q1 2022, Amazon.com, Inc.’s (NASDAQ:AMZN) revenue stood at $116.44 billion, below market estimates by $622.9 million. EPS also came in below estimates by $0.80.
Investment firm Weitz Investment Management talked about several stocks in its Q1 2022 investor letter, and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. The fund said:
“Amazon.com’s (NASDAQ:AMZN) stock was down modestly in the quarter, but opportunistic purchases helped the position contribute positively to the Fund. Our index short positions against ETFs tracking market indexes provided helpful ballast during the first quarter drawdown but were otherwise detractors for the fiscal year. During the quarter, we covered roughly 20% of our S&P 500 short and 50% of our Nasdaq 100 short at progressively lower prices. Among our long equities, we added materially to high-conviction holdings Amazon.com.”
1. AT&T Inc. (NYSE:T)
Citadel Investment Group’s Stake Value: $577.86 million
Percentage Of Citadel Investment Group’s 13F Portfolio: 0.11%
Number of Hedge Fund Holders: 74
AT&T Inc. (NYSE:T) is Ken Griffin’s favorite tech stock to buy, according to his portfolio for the first quarter of 2022. The billionaire’s position in the communication services firm consisted of 24.45 million shares worth nearly $578 million. This was a reduction of 45% in stake over the previous quarter, where Citadel Investment Group owned nearly 58 million shares of the firm. Overall, hedge fund sentiment around AT&T Inc. (NYSE:T) was positive at the end of the first quarter, where 74 hedge funds reported bullish bets on the company, as compared to 70 hedge funds a quarter earlier.
On June 16, Tigress Financial analyst Ivan Feinseth lowered the firm’s price target on AT&T Inc. (NYSE:T) to $28 from $31 and maintained a ‘Buy’ rating on the company shares. The analyst attributed the price target drop to the firm’s Warner Media spin-off as it pivots back to its communication focus. He believes the firm’s “resilient” business model and subscriber growth will lead towards long-term shareholder value creation and increasing cash flow. Since the start of the year, AT&T Inc. (NYSE:T) has gained 8.91% as of June 27.
In the first quarter of 2022, AT&T Inc. (NYSE:T) pulled in a revenue of $38.1 billion, missing estimates by $129.8 million. However, EPS of $0.77 was recorded above analysts’ expectations by $0.02.
Here is what asset management firm Weitz Investment Management had to say about AT&T Inc. (NYSE:T) in its Q4 2021 investor letter:
“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T Inc. (NYSE:T) to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”
You can also take a look at Billionaire Lee Ainslie’s Top 10 Stock Picks and 15 Fastest Growing Franchises.
