In this article, we discuss the 5 buy-the-dip stocks to buy according to billionaire Ken Fisher. If you want to read our detailed analysis of Fisher’s stock selection and the current sell-off in tech, go directly to 10 Best Buy-the-Dip Tech Stocks According to Billionaire Ken Fisher.
5. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 40
Fisher Asset Management’s 13F Portfolio: 1.75%
Fisher Asset Management’s Stake Value: $2.96 billion
ASML Holding N.V. (NASDAQ:ASML) is up next on Ken Fisher’s list of buy-the-dip tech stocks to buy. It is a provider of semiconductor manufacturing equipment to the world’s leading semiconductor producers. Fisher owned 4.44 million shares of the company in the first quarter of 2022, up 4% from the previous quarter’s stake of 4.27 million shares.
As of May 19, ASML Holding N.V.’s (NASDAQ:ASML) shares have lost 34.04% in the year to date, and currently trade at $526 on the Nasdaq stock exchange. On April 20, Summit Insights analyst KinNgai Chan gave ASML Holding N.V. (NASDAQ:ASML) a ‘Buy’ rating, stating that he views the firm as well-positioned for outperformance in the medium to long term, as demand for its EUV (extreme ultraviolet) tools increases as customers shift towards chips with even higher performance.
40 out of the 900+ hedge funds tracked by Insider Monkey owned positions worth $5.59 billion in ASML Holding N.V. (NASDAQ:ASML) at the close of the fourth quarter. This is down from 41 hedge funds in the previous quarter.
In the first quarter of 2022, ASML Holding N.V.’s (NASDAQ:ASML) quarterly revenue stood at $3.83 billion, outperforming estimates by $87.2 million. EPS of $1.88 was also above estimates by $0.06.
ClearBridge Investments talked about ASML Holding N.V. (NASDAQ:ASML) in its Q1 2022 investor letter. Here’s what the investment firm said:
“During the quarter, we reduced our semiconductor exposure through the trim of ASML (NASDAQ:ASML) to manage concerns of a slowdown due to the risk of double ordering and potential softness in some consumer end markets. We increased our position in IT services with the purchase of Accenture as we remain optimistic about the long-term growth potential these companies provide, which is underpinned by the compressed digital transformation cycle, rising cloud adoption and growth in data-driven insights.
Despite the market volatility and hyper focus on rising rates, chief information officer surveys continue to forecast resilience in IT budgets this year. Growth in IT spending for 2022 is expected to remain above the 10-year pre-COVID-19 average, according to Morgan Stanley. We believe this is a result of the strong secular underpinnings brought on by digital transformation and businesses focusing on increasing efficiencies through technology.”
4. salesforce.com, inc. (NYSE:CRM)
Number of Hedge Fund Holders: 110
Fisher Asset Management’s 13F Portfolio: 1.9%
Fisher Asset Management’s Stake Value: $3.23 billion
salesforce.com, inc. (NYSE:CRM) is the world’s leading cloud-based customer relationship management software, which is used to administer and analyze a company’s interactions with its customers. Its shares are down 39% as of May 19, but Ken Fisher knows how to spot a market leader trading below value and increased his stake in the company by 5% in the first quarter, thereby consisting of 15.23 million shares valued at $3.23 billion.
Roth Capital analyst Richard Baldry on May 18 upgraded salesforce.com, inc. (NYSE:CRM) to ‘Buy’ from ‘Neutral’ with a $242 price target. Mizuho analyst Gregg Moskowitz also gave the firm a ‘Buy’ rating with a price target of $225, down from $295. Although the sell-off in tech has gotten worse in recent weeks, Moskowitz sees good overall demand in software, particularly for digital transformation and/or security projects. He reduced the price target to reflect the uncertainty in the current macro backdrop.
110 hedge funds were long salesforce.com, inc. (NYSE:CRM) at the end of the fourth quarter of 2021, as compared to 119 hedge funds at the end of the third quarter. The total value of Q4 hedge fund holdings was recorded at $11.45 billion.
Investment firm Oakmark Fund talked about various stocks in its Q1 2022 investor letter, and one of them was salesforce.com, inc. (NYSE:CRM). Here’s what the fund said:
“Over the past 20 years, Salesforce (NYSE:CRM) has become a dominant global player in sales, customer service, commerce and marketing software. CRM earns 80% gross margins, grows 20% organically and virtually all of its revenue is recurring. It’s a great business that we’ve admired from afar for a long time. More recently, the organization has made some changes at the top that prompted us to take a closer look at the stock. New CEO Bret Taylor and CFO Amy Weaver are bringing a culture of financial discipline. We believe this renewed focus on profitability, combined with Salesforce’s strong underlying business characteristics, will yield strong results. The current valuation of 5x next year’s revenues represents a significant discount compared to publicly traded comparables and private market values in the software space. We view this discount as an opportunity to invest in a great business at a good value.
3. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 158
Fisher Asset Management’s 13F Portfolio: 3.32%
Fisher Asset Management’s Stake Value: $5.63 billion
In the first quarter of 2022, Fisher Asset Management bought an additional 90,000 shares of Alphabet Inc. (NASDAQ:GOOG), bringing his total stake in the tech firm to 2.02 million shares with a price tag of $5.63 billion.
On April 27, Jefferies analyst Brent Thill gave Alphabet Inc. (NASDAQ:GOOG) a ‘Buy’ rating, noting that the firm saw solid growth in its Google Search and Cloud services business. However, he decreased the price target to $3,400 from $3,600, noting below expectations ad revenue from Youtube for three consecutive quarters. The analyst also decreased his 2022 estimates for operating margin, gross and net revenue and earnings per share.
For the first quarter of 2022, Alphabet Inc. (NASDAQ:GOOG) reported an EPS of $24.62, missing consensus estimates by $0.93. Quarterly revenue of $68 billion saw a growth of 22.95% year-on-year, and beat analysts’ forecasts by $124.6 million.
Out of all the hedge funds tracked by Insider Monkey at the close of the fourth quarter, 158 held positions in Alphabet Inc. (NASDAQ:GOOG). This shows a positive trend from the previous quarter where 156 hedge funds reported ownership of stakes in the tech firm.
Baron Funds, an investment firm, discussed the market position of Alphabet Inc. (NASDAQ:GOOG) in its Q1 2022 investor letter. The fund said:
“We have modestly reduced the size of our position in Alphabet Inc. (NASDAQ:GOOG) (from 6.5% at the end of the fourth quarter of 2021 to 5.3% as of the end of the first quarter of 2022), after the stock rallied 64% in 2021 and continued outperforming during the first quarter, declining just 3%.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 279
Fisher Asset Management’s 13F Portfolio: 4.54%
Fisher Asset Management’s Stake Value: $7.70 billion
Amazon.com, Inc. (NASDAQ:AMZN) is the third largest holding of Ken Fisher according to his Q1 2022 portfolio. The billionaire owns 2.36 million shares of the firm at a value of $7.70 billion, signaling a increase in holding of 10% over the previous quarter where his portfolio contained 2.17 million shares of the firm.
On April 29, UBS analyst Lloyd Walmsley reiterated a ‘Buy’ rating on Amazon.com, Inc. (NASDAQ:AMZN) shares, noting that it remained a compelling choice for consumers in the current inflationary climate given its product selection, price and quick delivery. He sees Amazon trading at an attractive valuation of 50.2x earnings and 13.6x expected EBITDA for 2023.
Stifel analyst Scott Devitt also gave Amazon.com, Inc. (NASDAQ:AMZN) a ‘Buy’ rating, and lowered the price target to $3,800 from $4,400, noting that the company’s near-term positioning is likely to be clouded by the impact of inflation, but the recent share price decline offers a good entry point for investors.
Amazon.com, Inc. (NASDAQ:AMZN) was the most widely-held stock of all the hedge funds tracked by Insider Monkey. 279 hedge funds reported bullish bets on the company shares at the end of the fourth quarter, up from 242 hedge funds a quarter ago.
Here is what Miller Value Partners, an investment firm, had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2022 investor letter:
“For frame of reference, Amazon (NASDAQ:AMZN) bottomed at the same valuation in the financial crisis (side note: Amazon bottomed at 4x EV/GP after the tech bubble burst)! So there’s historical precedent for the lows being in. We will see whether that holds true this time. Regardless, we think there’s significant upside over a 5-year time horizon. The one other topic I want to briefly address is our volatility. We hope to write something about the topic in more depth in the future, but we want our clients and prospective investors to understand our views on it. We think that volatility is significantly misunderstood. We believe it creates opportunities from which we can profit.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 262
Fisher Asset Management’s 13F Portfolio: 5.06%
Fisher Asset Management’s Stake Value: $8.59 billion
In the first quarter of 2022, Fisher Asset Management held 27.87 million shares of Microsoft Corporation (NASDAQ:MSFT) worth $8.59 billion, representing 5.06% of the portfolio’s total value and making it the firm’s biggest shareholder. This was an increase of 4% over the previous quarter where the fund held 26.84 million shares of the firm.
On May 13, Tigress Financial analyst Ivan Feinseth reiterated a ‘Buy’ rating on Microsoft Corporation (NASDAQ:MSFT) shares, saying he views the recent share price losses as a “major buying opportunity.” Growth in cloud is driving strong business performance, according to the analyst, who also sees Microsoft emerging as a big player in the gaming industry and expanding into the ‘metaverse’ with its acquisition of Activision Blizzard (NASDAQ:ATVI).
Popular hedge funds held major stakes in Microsoft Corporation (NASDAQ:MSFT) at the close of Q4 2021, with 262 reporting bullish bets on the company shares with an aggregate value of $75.7 billion.
Microsoft Corporation (NASDAQ:MSFT) reported its Q1 2022 earnings on April 26, and posted an EPS of $2.22, beating estimates by $0.02. The quarterly revenue stood at $49.4 billion, outperforming analysts’ forecasts by $311.2 million.
Investment firm Motiwala Capital talked about many stocks in its Q4 2021 investor letter, and Microsoft Corporation (NASDAQ:MSFT) was one of them. The fund said:
“Microsoft (NASDAQ:MSFT) re-enters our portfolio after a long gap. MSFT sells enterprise and consumer software products as well as hardware products such as the Xbox video game console and Surface laptops. All business segments experienced double-digit revenue growth and earnings per share have compounded in the mid-double digits over the last 5 years. We believe MSFT continues this momentum in the years ahead.”
You can also take a look at 15 Best Security Stocks to Buy Now and 25 Fastest Growing CIties In the US.
