In this article, we will discuss the 5 tech stock picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management. If you want to read our detailed analysis of Immerman and Schiffman’s history, investment philosophy, and hedge fund performance, go directly to the 10 Tech Stock Picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management.
5. Uber Technologies, Inc. (NYSE:UBER)
Immerman and Schiffman’s Stake Value: $211,649,000
Percentage of Andrew Immerman and Jeremy Schiffman’s 13F Portfolio: 4.55%
Number of Hedge Fund Holders: 135
Uber Technologies, Inc. (NYSE:UBER) is a ride-hailing firm that also provides package delivery, food delivery, freight transportation and couriers services. It was incorporated in 2009 and stands fifth on the list of 10 tech stock picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management. Uber Technologies, Inc. (NYSE:UBER) currently has a market capitalization of $74.9 billion.
On September 13, Goldman Sachs analyst Eric Sheridan initiated coverage of Uber Technologies, Inc. (NYSE:UBER) with his “Buy” rating and gave his price target of $64.
Palestra Capital Management holds 4.22 million shares in Uber Technologies, Inc. (NYSE:UBER), worth $211.65 million, representing 4.55% of their investment portfolio. The hedge fund has increased its stake in Uber Technologies, Inc. (NYSE:UBER) by 5% in the second quarter of 2021. There were 135 hedge funds in our database that held stakes in Uber Technologies, Inc. (NYSE:UBER) in the second quarter of 2021, compared to 130 funds in the previous quarter.
RiverPark Funds, in its second-quarter 2021 investor letter, mentioned Uber Technologies, Inc. (NYSE:UBER). Here is what the fund said:
“UBER was our top detractor for the quarter. Delivery growth remains strong, and ride sharing has started to recover, though still down year over year (vs. pre-COVID results). Gross bookings grew 24% year over year, driven by 166% Delivery growth.
Despite the COVID disruption, UBER remains the undisputed global leader in ride sharing, with greater than 50% share in every major region in which it operates. The company is also a leader in food delivery (64% of 1Q21 revenue), where it is number one or two in the more than 25 countries in which it operates. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its more than 100 million users (by comparison, Amazon Prime has 130+ million members) and penetrate new markets of ondemand services, such as grocery delivery, truck brokerage and worker staffing for shift work. Its New Verticals (non-food delivery such as grocery, convenience, and alcohol) business hit a $3 billion annualized run rate in March, up 77% quarter over quarter.
UBER, at its current $91 billion market capitalization, trades at 4x next year’s revenue from its two core businesses. Additionally, the company has substantial, unrecognized, value in its several nascent development businesses and another $13 billion in equity stakes in synergistic businesses around the world.”
4. Microsoft Corporation (NASDAQ:MSFT)
Immerman and Schiffman’s Stake Value: $252,447,000
Percentage of Andrew Immerman and Jeremy Schiffman’s 13F Portfolio: 5.43%
Number of Hedge Fund Holders: 238
On September 14, Microsoft Corporation (NASDAQ: MSFT) declared a quarterly dividend of $0.62 per share, a 10.7% increase from the prior dividend of $0.56.
Palestra Capital Management owns 931,881 shares of Microsoft Corporation (NASDAQ:MSFT), worth $252.45 million. This represented 5.43% of the investment portfolio of Palestra Capital Management. There were 238 hedge funds in our database that held stakes in Microsoft Corporation (NASDAQ:MSFT) in the second quarter of 2021, compared to 251 funds in the previous quarter.
Baron Opportunity Fund, in its second-quarter 2021investor letter, mentioned Microsoft Corporation (NASDAQ:MSFT). Here is what the fund said:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft was a top contributor in the period because it trades at reasonable free cash flow and earnings valuations, has cloud and digital transformation tailwinds at its back, reported a solid March quarter, and beat Street expectations by a wide margin. Microsoft’s results continued to be strong across the board, with Azure cloud computing revenues up 46% in constantcurrency (“cc”) terms and commercial cloud bookings growth of 38% cc, the best in years. Microsoft also reported robust profitability growth, with operating income expanding 31% and GAAP earnings up 45%. We believe the company is well positioned for continued solid growth and profitability through market share gains as more companies look to transform and digitize their businesses as they move operations to the cloud.”
3. Alphabet Inc. (NASDAQ:GOOG)
Immerman and Schiffman’s Stake Value: $310,132,000
Percentage of Andrew Immerman and Jeremy Schiffman’s 13F Portfolio: 6.67%
Number of Hedge Fund Holders: 155
Alphabet Inc. (NASDAQ:GOOG) based in California, is an American multinational technology company that specializes in internet-related services and products, which include online advertising technologies, a search engine, cloud computing, software, and hardware. It was founded in 1998 and is placed third on the list of 10 tech stock picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management. Alphabet Inc. (NASDAQ:GOOG) shares have offered investors more than 89.72% in returns over the course of the past 12 months.
Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management owns 127,010 shares of Alphabet Inc. (NASDAQ:GOOG), worth $310.13 million. Hedge fund sentiment decreased for Alphabet Inc. (NASDAQ:GOOG) in the second quarter of 2021. Insider Monkey’s data shows that 155 hedge funds held stakes in the company in the second quarter of 2021, down from 159 funds a quarter earlier.
Qualivian Investment Partners, in its second-quarter 2021 investor letter, mentioned Alphabet Inc. (NASDAQ:GOOG). Here is what the fund said:
“The opportunity in online advertising remains very attractive for Alphabet’s subsidiary Google. In the recent June quarter, Google’s ad sales grew 69%. Alphabet’s subsidiary YouTube’s ad revenue soared 84%, to $7 billion, in the second quarter, putting the business on par with Netflix, which reported quarterly revenue of $7.3 billion. Netflix is expected to grow sales by 19%, to $29.7 billion this year, while YouTube’s ad revenue is forecast to rise 45%, to $28.7 billion.
Alphabet slashed operating losses for the Google Cloud by more than half, as the business continues to scale, growing at 50%+ clips. Furthermore, the company continues to have potentially new growth options via its investments in autonomous driving (Waymo) and various healthcare businesses such as Verily and Calico.”
2. Fidelity National Information Services, Inc. (NYSE:FIS)
Immerman and Schiffman’s Stake Value: $314,647,000
Percentage of Andrew Immerman and Jeremy Schiffman’s 13F Portfolio: 6.77%
Number of Hedge Fund Holders: 72
Fidelity National Information Services, Inc. (NYSE:FIS) is a technology company that provides services to merchants, banks, and capital markets businesses. It was founded in 1968 and is placed second on the list of 10 tech stock picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management. Fidelity National Information Services, Inc. (NYSE:FIS) shares have gained about 43.75% over the last 12 months.
On August 17, JPMorgan analyst Tien-Tsin Huang raised his price target on Fidelity National Information Services, Inc. (NYSE:FIS) to $160 from $153 and kept an “Overweight” rating on the shares. On August 4, Fidelity National Information Services, Inc. (NYSE:FIS) announced earnings for the second quarter of 2021. It posted earnings per share of $1.61, beating the market predictions by $0.06. Revenue over the period was $3.48 billion, surpassing the estimates by $90 million.
The hedge fund managed by Andrew Immerman and Jeremy Schiffman owns 2.22 million shares in Fidelity National Information Services, Inc. (NYSE:FIS), worth $314.65 million, representing 6.77% of their portfolio. Palestra Capital Management has increased its stake in the firm by 4% in the second quarter of 2021. There were 72 hedge funds in our database that held stakes in Fidelity National Information Services, Inc. (NYSE:FIS) in the second quarter of 2021, compared to 74 funds in the previous quarter.
Baron Funds, in its fourth-quarter 2020 investor letter, mentioned Fidelity National Information Services, Inc. (NYSE: FIS). Here is what the fund said:
“Weakness in IT was largely due to share price declines from payment services provider Fidelity National Information Services, Inc. Fidelity National’s stock underperformed because of revenue headwinds from the pandemic as reduced travel and spending activity led to lower payment processing volumes. Management believes these headwinds are temporary and expects growth to accelerate next year.”
1. Alliance Data Systems Corporation (NYSE:ADS)
Immerman and Schiffman’s Stake Value: $350,945,000
Percentage of Andrew Immerman and Jeremy Schiffman’s 13F Portfolio: 7.55%
Number of Hedge Fund Holders: 34
Alliance Data Systems Corporation (NYSE:ADS) is a data-driven marketing, loyalty, and payment solutions provider for big consumer-based businesses. The company was founded in 1996, and it stands first on the list of 10 tech stock picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management. Alliance Data Systems Corporation (NYSE:ADS) presently has a market capitalization of $4.8 billion and was able to deliver 112.44% return in the past 12 months.
On August 31, BofA analyst Mihir Bhatia upgraded Alliance Data Systems Corporation (NYSE:ADS) to “Buy” from “Neutral” and gave his price target of $121.
In the second quarter of 2021, Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management owned 3.37 million shares in Alliance Data Systems Corporation (NYSE:ADS), worth $350.95 million. The huge investment covers an impressive 7.55% of the fund’s portfolio. Alliance Data Systems Corporation (NYSE:ADS) saw a decrease in hedge fund sentiment recently. The number of long hedge fund positions reduced to 34 in the second quarter of 2021 compared to 36 positions in the previous quarter.
Alphyn Capital Management, in its fourth-quarter 2020 investor letter, mentioned Alliance Data Systems Corporation (NYSE: ADS). Here is what the fund said:
“My investment in Alliance Data Systems was a mistake, as mentioned in my Q1 letter. I allowed myself to be drawn to management’s narrative and was not critical enough of their excuses for poor performance. I was also heavily influenced by the notion that the valuation appeared cheap on a price-to-free cash flow basis. As I should have better remembered from my investment banking days in the early 2000’s when I was involved with IPOs, the stock market seeks growth and does not attribute high terminal value to stagnating companies, especially when management teams have lost the market’s confidence. While this seems obvious in hindsight, the lesson is to act more decisively in cutting a “bad” position in the future.”
You can also take a peek at 15 Best New Tech Stocks to Buy Now and 10 Best Tech Stocks to Buy According to Japanese Billionaire Masayoshi Son
