In this piece, we’ll take a look at the 5 Blue Chip Stocks to Buy Now According to Billionaire D. E. Shaw. For more stocks, the risk/reward and the methodology of this list, head on to 10 Blue Chip Stocks to Buy Now According to Billionaire D. E. Shaw.
5. Meta Platforms, Inc. (NASDAQ:META)
D E Shaw’s stake value: $568 million
Percentage of D E Shaw’s Portfolio: 0.66%
Number of Hedge Fund Holders: 184
With 2.5 billion monthly active members, Meta Platforms, Inc. (NASDAQ:META) is the largest social network online. The company’s ecosystem primarily comprises of the Facebook app, Instagram, Messenger, and WhatsApp, as well as several services around these products. During Q2 2022, D E Shaw boosted its stake in the company by 117%. The fund’s total stake in the company amounted to roughly $568 million, which represented 0.66% of its 13F portfolio.
Here is what Saga Partners has to say about Meta Platforms, Inc. (NASDAQ:META) in its Q2 2022 investor letter:
“Meta (formerly known as Facebook, when I discuss the social media apps specifically, I’ll still refer to Facebook). The Portfolio first bought Meta in Q4’18. It was a controversial investment then and has continued to be to this day. The core mission of the company has been to make the world more open and connected. To do that, it needs to connect everyone in the world, which it largely has done with its nearly 3 billion monthly active users across its family of apps (Facebook, Instagram, and WhatsApp). That type of scale is hard to grasp and is getting pretty close to essentially every smartphone user outside of China and Russia.
From an investing perspective, there are questions surrounding Apple’s iOS App Tracking Transparency (ATT) changes that limit sharing of user data across apps, investments in virtual reality (VR) and augmented reality (AR) i.e. the metaverse, and competitive threats surrounding the rise of TikTok. It seems like only yesterday (or last year) that one of the major risks of Facebook was that the company was too powerful, had too much influence on public opinion, and faced antitrust and regulatory concerns…”
At the end of Q2 2022, 184 hedge funds tracked by Insider Monkey owned stakes in Meta Platforms, Inc. (NASDAQ:META). Fisher Asset Management was the stock’s leading stakeholder in Q2, owning Meta Platforms, Inc. (NASDAQ:META) shares worth over $1.8 billion. The fund’s position in the stock increased by 4% from Q1 2022.
4. Amazon.com, Inc. (NASDAQ:AMZN)
D E Shaw’s stake value: $569 million
Percentage of D E Shaw’s Portfolio: 0.66%
Number of Hedge Fund Holders: 252
With $386 billion in net sales and an expected $578 billion in physical/digital online gross product volume in 2021, Amazon.com, Inc. (NASDAQ:AMZN) is a significant online retailer and one of the highest-grossing e-commerce aggregators. Retail sales account for over 80% of total revenue, followed by Amazon Web Services’ cloud computing, storage, database, and other products (10%-15%). During Q2 2022, D E Shaw boosted its stake in the company by 1204%. The fund’s total stake in the company amounted to roughly $569 million, which represented 0.66% of its 13F portfolio.
Tom Forte, analyst at DA Davidson maintains his buy stance of Amazon.com, Inc. (NASDAQ:AMZN) with a price target of $151, after the company recently disclosed the buyout of Cloostermans, a warehouse automation firm. The analyst noted that Amazon.com, Inc. (NASDAQ:AMZN) is making a “concerted effort” into the robotics / automation business with this purchase, as well as with the iRobot (IRBT) acquisition announced last month.
At the end of Q2 2022, 252 hedge funds tracked by Insider Monkey owned stakes in Amazon.com, Inc. (NASDAQ:AMZN). Fisher Asset Management was the stock’s leading stakeholder in Q2, owning Amazon.com, Inc. (NASDAQ:AMZN) shares worth over $5.1 billion. The fund’s position in the stock increased by 1959% from Q1 2022.
3. Alphabet Inc. (NASDAQ:GOOG)
D E Shaw’s stake value: $612 million
Percentage of D E Shaw’s Portfolio: 0.71%
Number of Hedge Fund Holders: 153
Alphabet Inc. (NASDAQ:GOOG) is a holding company. Google, the internet media powerhouse, is a completely owned subsidiary of the company. Google contributes 99% to Alphabet Inc.’s (NASDAQ:GOOG) income, with internet advertising accounting for more than 85% of the total revenue. During Q2 2022, D E Shaw increased its stake in the company by 70%. The fund’s total stake in the company amounted to roughly $612 million, which represented 0.71% of its 13F portfolio.
Last month, Ivan Feinseth analyst at Tigress Financial, increased his price target on Alphabet Inc. (NASDAQ:GOOG) to $186 from $183 while keeping a strong buy rating on the stock. The analyst highlighted the resiliency of Alphabet Inc. (NASDAQ:GOOG) core business in Cloud and Search. The analyst noted that the company’s current investment in Artificial Intelligence continues to drive “increasingly focused and helpful experiences for users and businesses.”
At the end of Q2 2022, 153 hedge funds tracked by Insider Monkey owned stakes in Alphabet Inc. (NASDAQ:GOOG). TCI Fund Management was the stock’s leading stakeholder in Q2, owning Alphabet Inc. (NASDAQ:GOOG) shares worth over $5.4 billion. The fund’s position in the stock increased by 5% from Q1 2022.
2. Microsoft Corporation (NASDAQ:MSFT)
D E Shaw’s stake value: $1.04 billion
Percentage of D E Shaw’s Portfolio: 1.22%
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ:MSFT) produces and licences software for consumers and businesses. Microsoft is widely recognized for its Windows operating systems and Office productivity suite. The business is divided into three major divisions of similar size: productivity and business processes, intelligence cloud, and more personal computing. During Q2 2022, D E Shaw decreased its stake in the company by 11%. The fund’s total stake in the company amounted to roughly $1.04 billion, which represented 1.22% of its 13F portfolio.
Analyst John DiFucci of Guggenheim recently commenced coverage of Microsoft Corporation (NASDAQ:MSFT) with a neutral rating and a $292 price target. While DiFucci believes Microsoft Corporation (NASDAQ:MSFT) can grow revenue and free cash flow in the mid-teens percentage points on average, led by above-consensus numbers in Azure and Office Commercial 365, he anticipates continued declines in Windows that the analyst believes are “not fully reflected in consensus estimates.” Given that Windows still accounts for about a quarter of Microsoft’s profits, DiFucci sees a balanced risk/reward at current prices.
At the end of Q2 2022, 258 hedge funds tracked by Insider Monkey owned stakes in Microsoft Corporation (NASDAQ:MSFT). Fisher Asset Management was the stock’s leading stakeholder in Q2, owning Microsoft Corporation (NASDAQ:MSFT) shares worth over $7.3 billion. The fund’s position in the stock increased by 3% from Q1 2022.
1. Apple Inc. (NASDAQ:AAPL)
D E Shaw’s stake value: $1.1 billion
Percentage of D E Shaw’s Portfolio: 1.3%
Number of Hedge Fund Holders: 128
Apple Inc. (NASDAQ:AAPL) creates, manufactures, and distributes smartphones, personal computers, tablets, wearables, and accessories, in addition to selling a variety of accessories. Additionally, the business provides payment, digital content, cloud, and advertising services.
According to Reuters, Apple Inc. (NASDAQ:AAPL) intends to deploy an improved version of TSMC’s latest chip in iPhones and Macbooks next year. The A17 mobile CPU, currently in development, will be mass-produced utilizing TSMC’s N3E chipmaking technology, with availability expected in the second half of next year. During Q2 2022, D E Shaw decreased its stake in the company by 9%. The fund’s total stake in the company amounted to roughly $1.11 billion, which represented 1.3% of its 13F portfolio.
Here’s what Wedgewood Partners said about Apple Inc. (NASDAQ:AAPL) in its Q2 2022 investor letter:
“Apple grew revenues +9%, driven by +17% growth in the Services segment. While iPhone revenues grew a modest +5%, it was on an exceptional year ago comparison of +66%. iPhone continues to capture most industry smartphone profits by focusing on high-end price tiers. Apple is taking nearly two-thirds of the revenue share in the premium ($400 and above) smartphone segment. Further, most of the growth was driven by expansion in the “ultra-premium” price tier of $1000 or more per unit.[1] As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially integrated circuits) and software continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”
At the end of Q2 2022, 128 hedge funds tracked by Insider Monkey owned stakes in Apple Inc. (NASDAQ:AAPL). Berkshire Hathaway was the stock’s leading stakeholder in Q2, owning Apple Inc. (NASDAQ:AAPL) shares worth over $122 billion. The fund’s position in the stock increased by 1% from Q1 2022.
You can also take a look at 10 High-Yield Dividend Stocks for Stable Income and 10 Dividend Stocks to Buy According to Billionaire Cliff Asness.
