In this article, we will discuss the 5 tech stock picks of Seth Wunder’s Black-And-White Capital. If you want to read our detailed analysis of Wunder’s history, investment philosophy, and hedge fund performance, go directly to the 10 Tech Stock Picks of Seth Wunder’s Black-And-White Capital.
5. RingCentral, Inc. (NYSE:RNG)
Black-And-White Capital’s Stake Value: $42,076,000
Percentage of Black-And-White Capital’s 13F Portfolio: 4.34%
Number of Hedge Fund Holders: 47
The hedge fund started building its position in the company in the fourth quarter of 2020 and currently holds over 144,800 shares in RingCentral, Inc. (NYSE:RNG), valued at $42.08 million. The company represents 4.34% of the hedge fund’s 13F portfolio.
Wells Fargo analyst Michael Turrin recently lowered his price target on RingCentral, Inc. (NYSE:RNG) to $375 from $425 and kept an “Overweight” rating on the shares.
Chase Coleman and Feroz Dewan’s Tiger Global Management LLC is the company’s most significant stakeholder, with 3.94 million shares worth $1.14 billion.
In its second-quarter investor letter, Baron Opportunity Fund highlighted a few stocks, and RingCentral Inc. (NYSE:RNG) is one of them. Here is what the fund said:
“RingCentral, Inc. has been a three-year portfolio holding and remains a leader in the cloud unified communications-as-a-service (UCaaS) space, which includes voice, video, messaging, and call center services. But after posting its third quarter in a row of accelerating revenue growth in the first quarter, RingCentral’s shares began to sell off on fears around heightened competition with both Microsoft Teams, of which RingCentral is a partner, and with Zoom Communications, a former partner who has launched its own voice communications offering. Shares sold off further during the period with the rotation out of secular growth names into cyclicals. We used the pullback in the shares to add significantly to our position given RingCentral’s best-in-class UCaaS technology, including five 9’s contractual service commitments (fully operational 99.999% of the time) for voice, which is orders of magnitude above its competitors; presence in roughly 40 countries; data governance and security requirements; number portability with all the relevant domestic and international carriers; and positioning as the Gartner Magic Quadrant UCaaS Leader. The UCaaS market is still quite early in its adoption curve, with only about 3% penetration of the roughly 400 million existing business landline seats in operation today. We believe RingCentral is in a solid position to capture meaningful share of this market, with its exclusive partnerships with legacy landline players like Avaya, Atos, and Alcatel, which effectively gives it a “hunting license” for about half of those 400 million legacy seats, leveraging joint go-to-market efforts with each partner. We remain confident that RingCentral is well positioned to achieve at least 30% top-line growth for years to come, along with steadily improving operating margins and free cash flow generation.”
4. Wix.com Ltd. (NASDAQ:WIX)
Black-And-White Capital’s Stake Value: $51,989,000
Percentage of Black-And-White Capital’s 13F Portfolio: 5.37%
Number of Hedge Fund Holders: 35
Wix.com Ltd. (NASDAQ:WIX) is an Israeli software firm that specializes in cloud-based web development. Wix.com Ltd. (NASDAQ:WIX) beat market expectations on earnings per share by $0.13 in the second quarter. It is placed fourth on the list of 10 tech stock picks of Seth Wunder’s Black-And-White Capital.
In September, Piper Sandler analyst Clarke Jeffries initiated coverage of Wix.com Ltd. (NASDAQ:WIX), rating the stock as “Neutral” and gave a price target of $252.
Baron Funds, an investment management firm, in its fourth-quarter 2020 investor letter, mentioned Wix.com Ltd. (NASDAQ:WIX). Here is what the fund said:
“Weakness in IT was largely due to share price declines from web software firm Wix.com Ltd. After doubling during the first three quarters of 2020, Wix’s shares fell slightly on concerns that its business, which benefited from increased website creation during the pandemic, could eventually moderate.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
Black-And-White Capital’s Stake Value: $57,760,000
Percentage of Black-And-White Capital’s 13F Portfolio: 5.97%
Number of Hedge Fund Holders: 271
The hedge fund owns 16,790 shares in Amazon.com, Inc. (NASDAQ:AMZN) worth $57.76 million, representing close to 5.97% of its portfolio. Black-And-White Capital has trimmed its stake in the firm by 9% in the second quarter of 2021.
Hedge fund managers see more upside for Amazon.com, Inc. (NASDAQ:AMZN) in 2021, given they were adding to their net holdings in the second quarter. At the end of the second quarter, 271 hedge funds in our database held stakes in Amazon.com, Inc. (NASDAQ:AMZN), compared to 243 funds in the previous quarter.
In its third-quarter 2021 investor letter, Worm Capital LLC mentioned Amazon.com (NASDAQ:AMZN). Here is what the fund said:
“Our core portfolio as of this writing—TSLA, SPOT, SHOP, ABNB, and AMZN—are all premier examples of companies that use the concept of aggregation of marginal gains to continuously improve their value proposition for customers. After all, what is innovation if not just a continuous search for fractional advantages in business?
Amazon, for instance, accumulates marginal gains by compressing their costs year after year for consumers, creating an infrastructure and logistics network unrivaled by its peers. In the short-term, the market can often misunderstand the intentions of the “marginal gain accumulators,” but over time, their value-creation becomes obvious in hindsight.”
2. Booking Holdings Inc. (NASDAQ:BKNG)
Black-And-White Capital’s Stake Value: $61,201,000
Percentage of Black-And-White Capital’s 13F Portfolio: 6.32%
Number of Hedge Fund Holders: 100
Booking Holdings Inc. (NASDAQ:BKNG) is an online travel firm that offers hotels, bed and breakfasts, hostels, apartments, vacation rentals, and other types of lodgings.
Cowen analyst Kevin Kopelman increased his price target on Booking Holdings Inc. (NASDAQ:BKNG) to $2950 from $2700 and reiterated an “Outperform” rating on the shares.
Seth Wunder’s Black-And-White Capital decreased its hold in Booking Holdings Inc. (NASDAQ:BKNG) by 4% in the second quarter, ending the period with 27,970 shares of the company.
Ensemble Capital, an investment management firm, in its third-quarter 2021 investor letter (NASDAQ:BKNG). Here is what the fund said:
“Booking : On the March 20, 2020 conference call we referenced at the beginning of this letter, we discussed our assessment of online travel agent Booking Holdings during the initial phase of the pandemic. At that time, we explained why we continued to hold a position in the company. We highlighted that while we fully expected demand to collapse and be slow to recover, our analysis indicated that they were very well positioned to survive the pandemic even if it lasted much longer than expected. And we said that companies that survived the pandemic would be well positioned to thrive on the other side
The key for us to holding the stock was our belief that traveling is hardwired into human DNA. While we could not know how long the pandemic would last, we were certain that when it was once again safe to travel, business would boom once again.
Today, more than 18 months later, travel has come roaring back despite the pandemic still not having come to an end. There continues to be significant barriers to travel, such as severe restrictions on international travel and the general health concerns of travelers. But in areas where people are allowed to
travel, such as domestically within the United States, leisure travel has boomed…” (Click here to see the full text)
1. Match Group, Inc. (NASDAQ:MTCH)
Black-And-White Capital’s Stake Value: $67,693,000
Percentage of Black-And-White Capital’s 13F Portfolio: 6.99%
Number of Hedge Fund Holders: 63
Match Group, Inc. (NASDAQ:MTCH) tops the list of 10 tech stock picks of Seth Wunder’s Black-And-White Capital. It is a technology and internet firm based in the United States. It owns and manages the world’s biggest online dating portfolio, with over 45 brands including Tinder, Match.com, Meetic, OkCupid, Hinge, PlentyOfFish, Ship, and OurTime.
Truist analyst Youssef Squali raised his price target on Match Group, Inc. (NASDAQ:MTCH) to $190 from $160 and kept a “Buy” rating on the shares.
ClearBridge Investments, in its second-quarter 2021 investor letter, mentioned Match Group, Inc. (NASDAQ:MTCH). Here is what the fund said:
“We initiated a position in Match Group in the quarter, the leading provider of dating products globally with 50%+ share of global online dating users. While this increases our overweight to the communication services sector, it adds indirect exposure to the consumer and diversifies the portfolio at the subsector level with an interactive media and service company, versus our historical overweight within traditional media. We see Match as a disruptor in the large, relatively underpenetrated market for online dating (there are 620 million global singles between 18 and 65, excluding China, versus the company’s 10 million paying subscribers today), and believe the company is well-positioned to benefit from a post-COVID-19 return to normalcy. We are also attracted to Match’s strong profitability profile and high degree of visibility given a large portion of revenue is subscription based.”
You can also take a peek at 12 Best Big Tech Stocks to Buy Right Now and 10 Best Tech Stocks to Buy Now According to Orkun Kilic’s Berry Street Capital
