Below is the list of 5 tech stocks to buy according to billionaire Chase Coleman. For a detailed discussion about Chase Coleman’s performance and investment philosophy please 10 Tech Stocks to Buy According to Billionaire Chase Coleman.
5. Meta Platforms, Inc. (NASDAQ:FB)
Tiger Global Management’s Stake Value: $1.69 billion
Percentage of Tiger Global Management’s Portfolio: 3.69%
Number of Hedge Fund Holders: 229
Meta Platforms, Inc. (NASDAQ:FB) is one of the oldest members of billionaire Chase Coleman’s portfolio. Shares of the company are down significantly since the beginning of this year due to regulatory challenges. Besides that, the company appears in a strong position to back its share price.
In the fourth quarter investor letter, Polen Capital, an investment management firm, mentioned a few stocks including Meta Platforms. Here is what Polen Capital stated:
“We trimmed our position in Meta Platforms (formerly Facebook), balancing the short-term growth headwinds with the long-term opportunity and relocating the proceeds to Amazon. In our view, Meta’s core family of apps (Facebook, Instagram, and WhatsApp) remain strong and well-positioned for future growth from social media advertising and increasingly e-commerce within Meta’s respective apps. That said, we believe Meta’s heavy investment and major push in strategy, capital deployment, and innovation are likely to keep Meta’s earnings growth below what we would have otherwise expected in the medium term.”
4. Snowflake Inc. (NYSE:SNOW)
Tiger Global Management’s Stake Value: $2 billion
Percentage of Tiger Global Management’s Portfolio: 4.43%
Number of Hedge Fund Holders: 87
Chase Coleman of Tiger Global Management is significantly bullish over the long-term fundamentals of Snowflake Inc. (NYSE:SNOW), a high-growth cloud-based data management company whose stock has stumbled as rising inflation and higher interest rates drove investors toward more conservative investments.
Snowflake helps organizations simplify tasks with their cloud-based subscription services. The company’s stock price is down around 32% year to date. Of the 924 hedge funds tracked by Insider Monkey, Snowflake was in 87 portfolios as of December.
3. Nu Holdings Ltd. (NYSE:NU)
Tiger Global Management’s Stake Value: $2.4 billion
Percentage of Tiger Global Management’s Portfolio: 5.43%
Number of Hedge Fund Holders: 28
Billionaire Chase Coleman bought a huge $2.49 billion worth of stake in Nu Holdings Ltd. (NYSE:NU) during the fourth quarter of 2021. It is a fintech and technology company operating in Brazil, Mexico, and Colombia. As of December, Nu was the third-largest tech stock holding of the New York-based fund, accounting for 5.43% of the overall portfolio. Warren Buffett-backed Brazil-based financial services platform debuted on NASDAQ at the end of 2021. Since IPO its stock price has been making price swings in line with the broader market trends.
The company’s strategy of expanding its loan portfolio in high-yielding products is a key catalyst for a significant increase in profitability in the years ahead. The company’s continued expansion of its client base and introduction of new products will further bolster its financial numbers. UBS analyst Thiago Batista expects the company’s client base to reach 100M by 2026, with the majority based in Brazil.
2. Sea Limited (NYSE:SE)
Tiger Global Management’s Stake Value: $2.5 billion
Percentage of Tiger Global Management’s Portfolio: 5.45%
Number of Hedge Fund Holders: 111
Billionaire Chase Coleman lifted its stake in Sea Limited (NYSE:SE) by 10% during the December quarter. Shares of the company are down close to 45% in the last twelve months due to investors’ move towards values stocks. On a positive side, the company revenues are growing at a sharp pace. Sea generated nearly $10 billion in revenue last year, more than double the figure it reported for 2020.
Sea was in 111 hedge funds portfolios as of December, according to data tracked by Insider Monkey. Tiger Global Management LLC was the leading stakeholder in the company.
1. Microsoft Corporation (NASDAQ:MSFT)
Tiger Global Management’s Stake Value: $2.8 billion
Percentage of Tiger Global Management’s Portfolio: 6.21%
Number of Hedge Fund Holders: 266
Tiger Global Management sold 36% of its stake in Microsoft Corporation (NASDAQ:MSFT) during the December quarter. Despite that, Microsoft Corporation (NASDAQ:MSFT) was the largest tech stock holding of Chase Coleman’s portfolio. In addition to prospects for steady share price appreciation, Microsoft is a good stock hold for the long term due to a dividend factor.
Saturna Capital, an investment management firm, mentioned a few stocks including Microsoft. Here is what Saturna Capital stated:
“Only two companies remain from 2010’s top 10 list: Apple and Microsoft. Going back to 2000, only Microsoft remains. We expect that Microsoft will maintain its position as the dominant global provider of personal and business software, while growing its cloud business and potentially being a key provider of augmented and mixed hardware and software.
US Technology companies have been the equity market’s biggest winners in recent years. Because of the Amana Income Fund’s objective of current income, many of these zero- or low-dividend companies do not suit the Fund’s mandate. One that does — Microsoft, which returned 46.03% for 2021 — was the Fund’s second biggest contributor to returns during the year. While Technology no doubt underpins much of the current economy and its future potential, Tech stocks have also benefited from low inflation, globalization, and valuations that are near historic highs. With globalization backsliding and inflation worries escalating, we believe companies in other industries with strong financial positions, competitive advantages, strong management, attractive dividend yields, and reasonable valuations can offer investors diversification in the context of equity markets increasingly concentrated in a handful of very large Technology firms.”
You can also take a look at 10 Best Semiconductor Stocks to Invest in According to Ken Griffin’s Citadel Investment Group and Consumer Staples Stocks To Buy According To Billionaire Ray Dalio.
