In this article, we discuss the 5 favorite stocks of Cathie Wood and Ken Fisher. If you want our detailed analysis of these stocks, go directly to the 10 Favorite Stocks of Cathie Wood and Ken Fisher.
5. The Walt Disney Company (NYSE:DIS)
Ken Fisher’s Stake Value: $1,878,713,000
Cathie Wood’s Stake Value: $66,633,000
Number of Hedge Fund Holders: 101
As of Q3 2021, Fisher and Wood hold substantial stakes in The Walt Disney Company (NYSE:DIS), which makes it one of their top favorite stocks. The Walt Disney Company (NYSE:DIS) is recognized for its enormous contributions to the media and entertainment industries via Walt Disney Pictures, Walt Disney Animation Studios, Pixar, Marvel Studios, Lucasfilm, 20th Century Studios, 20th Century Animation, and Searchlight Pictures. It was reported on November 29 that The Walt Disney Company (NYSE:DIS) reached 100 million subscribers across its streaming services, namely Disney+, Hulu, and ESPN+.
The Walt Disney Company (NYSE:DIS), on November 10, posted its Q3 earnings. EPS in the third quarter came in at $0.38, missing estimates by -$0.12. The $18.53 billion revenue also missed analysts’ consensus estimates by -$231.82 million. On November 29, Loop Capital analyst Alan Gould lowered the price target on The Walt Disney Company (NYSE:DIS) to $190 from $205 but kept a Buy rating on the shares.
One of the leading The Walt Disney Company (NYSE:DIS) stakeholders from Q3 is Philippe Laffont’s Coatue Management, with 5.85 million shares worth $989.6 million. Overall, 101 hedge funds were long The Walt Disney Company (NYSE:DIS), with total stakes valued at $9.41 billion.
Here is what RiverPark Funds has to say about The Walt Disney Company (NYSE:DIS) in its Q2 2021 investor letter:
“DIS shares declined for the quarter, taking a pause after a big fourth quarter and first quarter stock price advance, as Disney+ subscriber numbers were disappointing to investors. Disney+, the company’s DTC streaming business, had blown past previous subscriber projections, having gone from zero to 104 million in 17 months, but investors were now expecting 109 million subscribers. Management still expects significant continued growth to 230-260 million subscribers in 2024.
DIS is blessed with a deep library of unique content that includes both live sports (providing large, non-time shifted audiences) and incomparable brands including Disney, Marvel, Pixar and Lucasfilm, as well as the ABC network. The company also has a wealth of upcoming new content, expecting over 100 original titles per year, including two new Star Wars spin-off series, 10 Star Wars films, 10 Marvel films, 15 Disney and Pixar films and 15 Disney and Pixar series.
Now that the disruption in its theme park, cruise and theatrical businesses appears to be coming to an end, we believe that Disney is among the best-positioned media companies in the new landscape to combine multi-channel and DTC distribution. We also note that DIS has an extremely strong balance sheet and a growing pool of free cash flow to be used both to return to shareholders and to invest in future opportunities.”
4. PayPal Holdings, Inc. (NASDAQ:PYPL)
Ken Fisher’s Stake Value: $3,120,644,000
Cathie Wood’s Stake Value: $198,282,000
Number of Hedge Fund Holders: 123
PayPal Holdings, Inc. (NASDAQ:PYPL), on November 8, posted earnings for the third quarter of 2021. EPS for the period came in at $1.11, beating estimates by $0.03. The $6.18 billion revenue gained 13.24% year-over-year, but missed analysts’ consensus estimates by $51.87 million. PayPal Holdings, Inc. (NASDAQ:PYPL) is a financial technology corporation offering an online payment platform across a majority of countries.
Ken Fisher’s Fisher Asset Management is one of the leading PayPal Holdings, Inc. (NASDAQ:PYPL) stakeholders with a $3.12 billion stake, and Cathie Wood holds a $198.2 million position in the company. Overall, 123 hedge funds were bullish on PayPal Holdings, Inc. (NASDAQ:PYPL) in the third quarter, down from 143 funds in the prior quarter. Fundsmith LLP is the largest PayPal Holdings, Inc. (NASDAQ:PYPL) stakeholder, with 12.28 million shares worth $3.19 billion.
UBS analyst Rayna Kumar on November 17 assumed coverage of PayPal Holdings, Inc. (NASDAQ:PYPL) with a Buy rating and a $263 price target. The analyst states that the pull back after its Q3 earnings release offers an attractive buying opportunity as PayPal Holdings, Inc. (NASDAQ:PYPL) is positioned for accelerated growth due to the increase in digital payments following the COVID-19 pandemic.
Here is what Baron FinTech Fund has to say about Paypal Holdings, Inc. (NASDAQ:PYPL) in its Q3 2021 investor letter:
“PayPal Holdings, Inc. enables digital payments for consumers and merchants worldwide. Shares fell on quarterly financial results and guidance that were below investor expectations due to a faster roll-off of eBay business, which should only be a temporary headwind. PayPal also announced the acquisition of Paidy, the leading buy-now-pay-later provider in Japan, which expands PayPal’s addressable market into a fast-growing category. We remain investors because we believe PayPal is a prime beneficiary of the secular growth of e-commerce and digital financial services.”
3. Alphabet Inc. (NASDAQ:GOOG)
Ken Fisher’s Stake Value: $462,708,000
Cathie Wood’s Stake Value: $71,585,000
Number of Hedge Fund Holders: 156
Ken Fisher and Cathie Wood regard Alphabet Inc. (NASDAQ:GOOG) as one of their favorite stocks from the third quarter, holding significant stakes in the parent company of Google subsidiaries. Alphabet Inc. (NASDAQ:GOOG), on October 26, reported its Q3 earnings. EPS for the quarter equaled $27.99, outperforming estimates by $4.75. The quarterly revenue amounted to $65.12 billion, exceeding estimates by $1.83 billion.
Tigress Financial analyst Ivan Feinseth on December 1 raised the price target on Alphabet Inc. (NASDAQ:GOOG) to $3,540 from $3,185 and reiterated a Strong Buy rating on the shares, citing strong growth potential from the artificial intelligence segment of the tech giant.
Chris Hohn’s TCI Fund Management is the leading Alphabet Inc. (NASDAQ:GOOG) stakeholder in Q3 2021, with a $7.86 billion position in the company. Overall, 156 hedge funds were long Alphabet Inc. (NASDAQ:GOOG) in the third quarter, with total stakes amounting to almost $35 billion.
Here is what Davis Opportunity Fund has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 investor letter:
“E-commerce, online search and advertising, social media and software are another component of the portfolio that have proven, attractive businesses. The online portion of the Fund is currently dominated by such market leaders as Alphabet (the parent company of Google). We are attracted to these names based on the size and rapid expansion of their market opportunities globally, their ability to generate and grow new revenue sources through constant innovation, ample operating leverage as they continue to scale and capable, focused, highly competitive leadership teams. If purchased at sensible prices, these types of businesses in our experience can contribute meaningfully to long-term results.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Ken Fisher’s Stake Value: $6,343,928,000
Cathie Wood’s Stake Value: $43,737,000
Number of Hedge Fund Holders: 242
Amazon.com, Inc. (NASDAQ:AMZN), an e-commerce, AI, digital streaming, and cloud services provider, posted Q3 earnings on October 28. EPS in the period equaled $6.18, missing estimates by -$2.78. The quarterly revenue came in at $110.81 billion, up 15.26% from the prior-year quarter, but missing estimates by $784.89 million.
It was announced on December 2 that Amazon.com, Inc. (NASDAQ:AMZN) has partnered with the EV automaker, Rivian Automotive, Inc. (NASDAQ:RIVN) and Pfizer Inc. (NYSE:PFE) as their cloud services provider.
UBS analyst Kunal Madhukar assumed coverage of Amazon.com, Inc. (NASDAQ:AMZN) with a Buy rating and a $4,700 price target on December 2. Amazon.com, Inc. (NASDAQ:AMZN) is the analyst’s favorite name in the U.S. internet sector, and he stated that the company has multiple growth drivers.
In the third quarter, 243 hedge funds reported owning stakes worth $42.5 billion in Amazon.com, Inc. (NASDAQ:AMZN), down from 271 funds in the preceding quarter, holding total stakes valued at $60.5 billion. Ken Fisher’s Fisher Asset Management is one of the leading Amazon.com, Inc. (NASDAQ:AMZN) stakeholders from Q3, with a $6.34 billion position in the company.
Here is what Davis Opportunity Fund has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter:
“E-commerce, online search and advertising, social media and software are another component of the portfolio that have proven, attractive businesses. The online portion of the Fund is currently dominated by such market leaders as Amazon.com. We are attracted to these names based on the size and rapid expansion of their market opportunities globally, their ability to generate and grow new revenue sources through constant innovation, ample operating leverage as they continue to scale and capable, focused, highly competitive leadership teams. If purchased at sensible prices, these types of businesses in our experience can contribute meaningfully to long-term results.”
1. Meta Platforms, Inc. (NASDAQ:FB)
Ken Fisher’s Stake Value: $2,576,200,000
Cathie Wood’s Stake Value: $71,300,000
Number of Hedge Fund Holders: 248
Mark Zuckerberg’s Meta Platforms, Inc. (NASDAQ:FB) is one of the most sought after stocks by hedge funds in the third quarter, with Ken Fisher and Cathie Wood holding significant stakes in the company, respectively valued at $2.57 billion and $71.3 million. Overall, 248 hedge funds were long Meta Platforms, Inc. (NASDAQ:FB) in Q3 2021, with total stakes amounting to $38.5 billion. Boykin Curry’s Eagle Capital Management is one of the largest Meta Platforms, Inc. (NASDAQ:FB) stakeholders, with a $2.44 billion position in the company.
Meta Platforms, Inc. (NASDAQ:FB) posted its Q3 results on October 25. EPS in the period came in at $3.22, exceeding estimates by $0.04. The $29.01 billion revenue was up 35.12% year-over-year, but missed estimates by $513.23 million.
HSBC analyst Nicolas Cote-Colisson on December 6 upgraded Meta Platforms, Inc. (NASDAQ:FB) to Hold from Reduce with an unchanged price target of $300. The analyst noted that Meta Platforms, Inc. (NASDAQ:FB) shares are under pressure after a “regulatory setback” despite the rising interest in metaverse. He believes that after the stock dipped 19% since the September 7 peak, the new price target accurately reflects the risks associated with the company.
Here is what Jefferies Group has to say about Meta Platforms, Inc. (NASDAQ:FB) in its Q3 2021 investor letter:
“While still early, FB is in the process of building the platforms that will ultimately support the development of the Metaverse. We look at FB’s position through the lens of 4 current investment initiatives: 1) Oculus VR hardware, 2) Smart glasses, 3) Augmented Reality lenses, and 4) “Horizon Workrooms”
Oculus Virtual Reality hardware: Since acquiring Oculus in 2014 ($2B deal), FB has been focused on developing best-in-class hardware and complementary software & services to support VR experiences. The Oculus Quest 2 is FB’s newest VR headset; it retails at $299 and allows users to play games, try fitness classes, play sports, and watch concerts in virtual environments. Most importantly, Quest 2 is linked to users’ Facebook accounts, which means users can seamlessly connect with friends in virtual environments to play games or spend time together. We believe one of FB’s biggest differentiators in VR is its large array of non-gaming experiences that were designed for Oculus. For instance, users can explore extreme terrain in National Geographic Explore VR, join virtual fitness classes, or simulate being a chef. As FB’s hardware continues to improve and becomes less cumbersome, we would expect a flywheel of greater developer and user adoption of VR…” (Click here to see the full text)
You can also take a look at 10 Stocks in Focus After Posting Their Financial Results and 10 Reddit Stocks that Tripled in 2021.
