In this article, we discuss the 5 tech and software stocks to buy according to Hamilton Helmer’s Strategy Capital. If you want to see our detailed analysis of the tech and software industry, go directly to the 9 Tech and Software Stocks to Buy According to Hamilton Helmer’s Strategy Capital.
5. Amazon.com, Inc. (NASDAQ:AMZN)
Helmer’s Stake Value: $106,287,000
Percentage of Hamilton Helmer’s 13F Portfolio: 10.88%
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ: AMZN) engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It sells merchandise and content purchased for resale from third-party sellers through physical and online stores. Amazon.com, Inc. (NASDAQ: AMZN) also offers programs that enable sellers to sell their products on its websites, as well as its stores. Moreover, the company provides compute, storage, database, analytics, machine learning, and other services, as well as fulfillment, advertising, publishing, and digital content subscriptions. Amazon.com, Inc. (NASDAQ: AMZN) also gave us Amazon Prime, a membership program, which provides free shipping of various items, access to streaming of movies and TV episodes, among other services. The company serves consumers, sellers, developers, enterprises, and content creators. Amazon.com, Inc. (NASDAQ: AMZN) was founded in 1994 and is headquartered in Seattle, Washington.
On July 26, 2021, Credit Suisse analyst Stephen Ju raised the firm’s price target on Amazon.com, Inc. (NASDAQ: AMZN) from $4,000 to $4,850 and reiterated an Outperform rating on the shares ahead of quarterly results. The analyst notes that Amazon nearly tripled dollars spent on e-commerce capacity additions from $3 billion in Q1 2019 to $12 billion in Q4 2020 and $10 billion in Q1 2021.
Based on the latest 13F filings, the Hamilton Helmer-led Strategy Capital holds $106.29 million worth of in shares of Amazon.com, Inc. (NASDAQ: AMZN) as of the second quarter of 2021. These shares represent 10.88% of Strategy Capital’s investment portfolio.
In the second quarter of 2021, Amazon.com, Inc. (NASDAQ: AMZN) had an actual EPS of $15.12, beating estimates by $2.83. Amazon.com, Inc. (NASDAQ: AMZN) reported revenues amounting to $113.08 billion, up 27.18% year over year, missing estimates by -$2.01 billion. Amazon.com, Inc. (NASDAQ: AMZN) gained 12.48% over the past 6 months and 8.78% year to date.
By the end of the second quarter of 2021, 271 hedge funds out of the 873 tracked by Insider Monkey held stakes in Amazon.com, Inc. (NASDAQ: AMZN) worth roughly $60.5 billion. This is compared to 243 hedge funds in the previous quarter with a total stake value of approximately $50.4 billion.
L1 Capital, an investment management firm, published its ‘L1 Capital International Fund’ second quarter 2021 investor letter. The fund mentioned Amazon.com, Inc. (NASDAQ: AMZN) and discussed its stance on the firm. Here’s what L1 Capital has to say:
“Amazon flipped from being the largest detractor from portfolio performance in the March 2021 quarter, to one of the leading contributors in the June 2021 quarter. We took advantage of negative near-term sentiment in the March 2021 quarter to add to our Amazon investment. We continue to view Amazon as one of the best positioned businesses globally, with its share price still not reflecting fair value.”
4. Pinterest, Inc. (NYSE:PINS)
Helmer’s Stake Value: $119,440,000
Percentage of Hamilton Helmer’s 13F Portfolio: 12.22%
Number of Hedge Fund Holders: 63
Pinterest, Inc. (NYSE: PINS) provides a visual discovery engine in the United States and internationally. The company’s engine allows people to find inspiration for their lives, including recipes, style, and home inspiration, DIY, among others. It shows them visual recommendations based on people’s personal tastes and interests. Pinterest, Inc. (NYSE: PINS) was founded in 2008 and is headquartered in San Francisco, California.
On July 30, Morgan Stanley analyst Brian Nowak reported the firm’s price target on Pinterest at $77 and reiterated an Overweight rating on the shares.
Based on the latest 13F filings, the Hamilton Helmer-led Strategy Capital holds 1,512,859 shares of Pinterest, Inc. (NYSE: PINS), worth 119,440,000 as of the second quarter of 2021. These shares represent 12.22% of Strategy Capital’s investment portfolio.
In the second quarter of 2021, Pinterest, Inc. (NYSE: PINS) had an actual EPS of $0.25, beating estimates by $0.12. Pinterest, Inc. (NYSE: PINS) reported revenues amounting to $613.21 million, up 125.04% year over year, beating estimates by $51.07 million.
By the end of the second quarter of 2021, 63 hedge funds out of the 873 tracked by Insider Monkey held stakes in Pinterest, Inc. (NYSE: PINS) worth roughly $2.9 billion. This is compared to 83 hedge funds in the previous quarter with a total stake value of approximately $4.18 billion.
Carillon Tower Advisers, an investment management firm, published its “Carillon Eagle Mid Cap Growth Fund” first quarter 2021 investor letter. Carillon Tower Advisers, mentioned Pinterest, Inc. (NYSE: PINS) in their investor letter and shared their insights on the company. Here’s what they had to say:
“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.”
3. Atlassian Corporation Plc (NYSE:TEAM)
Helmer’s Stake Value: $130,776,000
Percentage of Hamilton Helmer’s 13F Portfolio: 13.38%
Number of Hedge Fund Holders: 64
Atlassian Corporation Plc (NYSE: TEAM) through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. Its products include JIRA, a workflow management system for teams to plan, track, collaborate, and manage work, and projects; Jira Service Management, a service desk product for creating and managing service experiences for various service team providers, including IT, legal, and HR teams; Jira Align for enterprise agile planning; Opsgenie, an incident management tool that centralizes alerts and notifies right people at right time; and Statuspage for incident communication. The company also provides Confluence and Trello. Atlassian Corporation Plc (NYSE: TEAM) was founded in 2002 and is headquartered in Sydney, Australia.
On July 30, Canaccord analyst David Hynes raised the firm’s price target on Atlassian Corporation Plc (NYSE: TEAM) from $275 to $325 and kept a Buy rating on the shares.
Based on the latest 13F filings, the Hamilton Helmer-led Strategy Capital holds $131 million worth of shares in Atlassian Corporation Plc (NYSE: TEAM) as of the second quarter of 2021. These shares represent 13.38% of Strategy Capital’s investment portfolio.
As of the fiscal fourth quarter of 2021, Atlassian Corporation Plc (NYSE: TEAM) had an actual EPS of $0.24, beating estimates by $0.06. Atlassian Corporation Plc (NYSE: TEAM) also reported revenues amounting to $559.54 million, up 29.98% year over year, beating estimates by $34.23 million. Atlassian Corporation Plc (NYSE: TEAM) gained 58.41% over the past 6 months and 61.87% year to date.
By the end of the second quarter of 2021, 64 hedge funds out of the 873 tracked by Insider Monkey held stakes in Atlassian Corporation Plc (NYSE: TEAM) worth roughly $4.17 billion. This is compared to 67 hedge funds in the previous quarter with a total stake value of approximately $3.95 billion.
Tao Value, an investment management firm, published its second-quarter 2021 investor letter, in which they mentioned Atlassian Corporation Plc (NASDAQ: TEAM), and discussed its stance on the firm. Here’s what they had to say:
“Atlassian is in the middle of a multi-year migration from on-premise to cloud. In Feb 2021, Atlassian stopped new sales of server license and increased price as planned. It created “pull-forward” effects that incentivize users to renew early, leading to strong revenue & billings growth. It also introduced its newest innovative product called “Point A”, which enables product development teams to collaborate with customers to drive faster and more targeted solution building. Outside of the financial numbers, Atlassian is also empowering many small teams that use its free tier enterprise cloud solution, including our team. I remain confident that Atlassian has the potential to serve all kinds of team collaboration regardless of sector, implying strong growth in years to come.”
2. Facebook, Inc. (NASDAQ:FB)
Helmer’s Stake Value: $140,020,000
Percentage of Hamilton Helmer’s 13F Portfolio: 14.33%
Number of Hedge Fund Holders: 266
Facebook, Inc. (NASDAQ: FB) develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices worldwide. One of the company’s products is Facebook that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers. Next, we have Instagram, a community for sharing photos, videos, and private messages. The third product is Messenger, a messaging application for people to connect with friends, family, groups, and businesses across platforms and devices. You may be familiar with WhatsApp, a messaging application that is used by people and businesses to communicate confidentially, another product of Facebook, Inc. (NASDAQ: FB). It also provides Facebook Reality Labs, an augmented and virtual reality product that helps people feel connected, anytime, and anywhere. Facebook, Inc. (NASDAQ: FB) was founded in 2004 and is headquartered in Menlo Park, California.
On September 9, HSBC analyst Nicolas Cote-Colisson raised the firm’s price target on Facebook, Inc. (NASDAQ: FB) from $275 to $300 and kept a Reduce rating on the shares.
Based on the latest 13F filings, Strategy Capital holds $140 million worth of shares in Facebook, Inc. (NASDAQ: FB) as of the second quarter of 2021. These shares represent 14.33% of the fund’s investment portfolio.
In the second quarter of 2021, Facebook, Inc. (NASDAQ: FB) had an actual EPS of $3.61, beating estimates by $0.58. Facebook, Inc. (NASDAQ: FB) also reported revenues amounting to $29.08 billion, up 55.60% year over year, beating estimates by $1.19 billion. Moreover, Facebook, Inc. (NASDAQ: FB) gained 37.33% over the past 6 months and 39.78% year to date.
By the end of the second quarter of 2021, 266 hedge funds out of the 873 tracked by Insider Monkey held stakes in Facebook, Inc. (NASDAQ: FB) worth roughly $42.35 billion. This is compared to 257 hedge funds in the previous quarter with a total stake value of approximately $40.96 billion.
Polen Capital, an investment management firm, published its “Polen Focus Growth” second quarter 2021 investor letter in which it mentioned Facebook, Inc. (NASDAQ: FB) and discussed its stance on the firm. Here’s what they had to say:
“Facebook was the top contributor to our return for the second consecutive quarter. The company has over $1 trillion market capitalizations. Yet, based on first quarter 2021 results, FB is currently still growing revenue at over 30% organically! In fact, last quarter Facebook grew revenue 48% year over year. Facebook has generated earnings and intrinsic value growth for many years, driven largely by the mostly free services the company provide to people who can easily choose to stop using them and spend their time elsewhere.
That said, we are regularly asked about the perceived high regulatory risk around Facebook. We examine risks to businesses and, in particular, regulatory risks through a lens of risk exposure versus actual risk. For instance, the antitrust complaints globally against Facebook based on their size, influence, and strong competitive positioning, definitionally exposes these companies to more regulatory risk than much smaller businesses. However, we do not believe risk exposure is the same as actual risk…”
1. Shopify Inc. (NYSE:SHOP)
Helmer’s Stake Value: $261,484,000
Percentage of Hamilton Helmer’s 13F Portfolio: 26.77%
Number of Hedge Fund Holders: 85
Topping our list is Shopify Inc. (NYSE: SHOP). Shopify Inc. (NYSE: SHOP) is a commerce company and provides an ecommerce platform and services in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company’s platform provides merchants to run their business in various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces. Shopify Inc. (NYSE: SHOP) also sells custom themes and apps, and registration of domain names. Shopify Inc. (NYSE: SHOP) was incorporated in 2004 and is headquartered in Ottawa, Canada.
On July 29, Wedbush analyst Ygal Arounian raised the firm’s price target on Shopify Inc. (NYSE: SHOP) from $1,650 to $1,800 and kept an Outperform rating on the shares. The analyst notes Shopify Inc. (NYSE: SHOP) reported strong Q2 revenue and profitability beats, with continued gross merchandise volume strength. Management continues to see e-commerce gross merchandise volume at a new normal level here, with continued growth ahead, Arounian adds.
Based on the latest 13F filings, Strategy Capital holds $261.48 million worth of shares in Shopify Inc. (NYSE: SHOP) as of the second quarter of 2021. These shares represent 26.77% of the fund’s investment portfolio.
In the second quarter of 2021, Shopify Inc. (NYSE: SHOP) had an actual EPS of $2.24, beating estimates by $1.28. Shopify Inc. (NYSE: SHOP) also reported revenues amounting to $1.12 billion, up 56.71% year over year, beating estimates by $69.15 million. Shopify Inc. (NYSE: SHOP) gained 25.96% over the past 6 months and 33.64% year to date.
By the end of the second quarter of 2021, 85 hedge funds out of the 873 tracked by Insider Monkey held stakes in Shopify Inc. (NYSE: SHOP) worth roughly $13.97 billion. This is compared to 91 hedge funds in the previous quarter with a total stake value of approximately $9.98 billion.
Polen Capital, an investment management firm, published its “Polen International Growth” second quarter 2021 investor letter in which it mentioned Shopify Inc. (NYSE: SHOP) and discussed its stance on the firm. Here’s what Polen Capital had to say:
“Shopify, a Canadian software company, enables merchants and entrepreneurs to run their operations efficiently. We like the focus Shopify brings to merchants. Its products allow merchants to set up an online store, manage inventory, interact with customers, accept payments, and monitor the flow of goods through various distribution channels in one centralized dashboard. Though it offers missioncritical capabilities, Shopify subtly operates in the background while allowing merchants to interact with customers.
As the world increasingly sees direct-to-consumer interactions take flight, both nascent and established brands are adopting Shopify. Today, nearly two million businesses utilize Shopify to sell more than $150 billion in merchandise across the platform. We think these numbers can grow significantly from here. Further, newer product categories like lending and fulfillment (along with a litany of other future merchant pain points we think Shopify can help solve) coupled with higher attach rates for payments could drive higher monetization of a growing user base in the coming five years. We believe Shopify can grow its earnings power at a 30% rate for the coming five years.”
See also 10 Best Tech Stocks to Invest in For Long Term and 10 Best Tech Stocks to Buy Right Now Under $10.
