In this article, we discuss 5 software stocks to sell now according to Cathie Wood. If you want to read our detailed analysis of these stocks, go directly to 10 Software Stocks to Sell Now According to Cathie Wood.
5. Zillow Group, Inc. (NASDAQ:Z)
Number of Hedge Fund Holders: 61
Percentage Decrease in Stake in Q4: 91%
Zillow Group, Inc. (NASDAQ:Z) is a digital real estate firm. Latest data shows that ARK owned over 1 million shares of Zillow Group, Inc. (NASDAQ:Z) at the end of December 2021 worth over $65 million. Wood had first bought a stake in the firm during the second quarter of 2018.
Other hedge funds have also been selling Zillow Group, Inc. (NASDAQ:Z) in recent months. At the end of the fourth quarter of 2021, 61 hedge funds in the database of Insider Monkey held stakes worth $2.2 billion in Zillow Group, Inc. (NASDAQ:Z), compared to 67 in the preceding quarter worth $4.2 billion.
In its Q1 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Zillow Group, Inc. (NASDAQ:Z) was one of them. Here is what the fund said:
“Zillow Group, Inc. operates leading U.S. real estate sites, a mortgage marketplace, and the Zillow Offers home-buying business. Shares fell during the quarter in concert with the broader rotation out of technology-based stocks despite the company’s continued inflection in mortgages revenue, strong profitability in its core business, and a positive real estate outlook as Zillow builds out its iBuying ecosystem. In our view, Zillow is a leader in the large online real estate advertising market with substantial upside from mortgages and Offers, and we remain investors.”
4. Meta Platforms, Inc. (NASDAQ:FB)
Number of Hedge Fund Holders: 224
Percentage Decrease in Stake in Q4: 100%
Meta Platforms, Inc. (NASDAQ:FB) is a California-based tech giant. There has been a mass hedge fund exodus from the stock in recent months. At the end of the fourth quarter of 2021, 224 hedge funds in the database of Insider Monkey held stakes worth $31 billion in Meta Platforms, Inc. (NASDAQ:FB), compared to 248 in the preceding quarter worth $38 billion.
Meta Platforms, Inc. (NASDAQ:FB) had featured in the ARK portfolio, with minor interruptions, since the fourth quarter of 2016. The fund had been shedding the stock since the fourth quarter of 2020 and sold off the holding completely during the fourth quarter of 2021.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:FB) was one of them. Here is what the fund said:
“We continued to keep our learnings from 2020 in mind during the quarter as we sought to increase the up capture of the portfolio. We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks, including Facebook, while trimming our weighting to stable names, which now represent 47% of the portfolio. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”
3. Pinterest, Inc. (NYSE:PINS)
Number of Hedge Fund Holders: 57
Percentage Decrease in Stake in Q4: 100%
Pinterest, Inc. (NYSE:PINS) owns and runs a visual discovery engine. Pinterest, Inc. (NYSE:PINS) had been in the ARK portfolio since the third quarter of 2019. The fund reduced the holding during the first three quarters of 2021 and sold it off completely between October and December.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in Pinterest, Inc. (NYSE:PINS), with 4.4 million shares worth more than $163 million.
In its Q1 2021 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Pinterest, Inc. (NYSE:PINS) was one of them. Here is what the fund said:
“Pinterest is an operator of a pinboard-style social media website that enables users to create theme-based image collections for events, hobbies, and other personal interests. The firm delivered another quarter of both earnings and forward guidance above investor expectations, sending shares higher. Strength was driven by notable user growth and a return of advertising spending. We remain excited about an increase in video content, new analytics tools for advertisers, and an increasing shift towards ecommerce.”
2. LivePerson, Inc. (NASDAQ:LPSN)
Number of Hedge Fund Holders: 28
Percentage Decrease in Stake in Q4: 100%
LivePerson, Inc. (NASDAQ:LPSN) is an application software firm that provides commerce solutions. At the end of the fourth quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $90 million in LivePerson, Inc. (NASDAQ:LPSN), up from 26 in the preceding quarter worth $225 million.
ARK had first purchased a stake in the company during the third quarter of 2021, buying close to 1 million shares at an average price of $62.92 per share. This holding was sold off completely in the next quarter.
1. Peloton Interactive, Inc. (NASDAQ:PTON)
Number of Hedge Fund Holders: 60
Percentage Decrease in Stake in Q4: 100%
Peloton Interactive, Inc. (NASDAQ:PTON) provides interactive fitness products. The company had been in the ARK portfolio since the fourth quarter of 2020. The hedge fund added to this holding aggressively during 2021 before selling it off almost completely in the fourth quarter.
Elite hedge funds still hold large stakes in Peloton Interactive, Inc. (NASDAQ:PTON). Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Viking Global is a leading shareholder in Peloton Interactive, Inc. (NASDAQ:PTON), with 3.9 million shares worth more than $141 million.
You can also take a peek at 10 Best Healthcare Dividend Stocks to Buy Now and 10 Dividend Stocks with Over 20 Years of Dividend Increases.
