In this article, we discuss the 5 tech stocks to buy according to Billionaire David Tepper. If you want to see our detailed analysis of Tepper’s history, investment philosophy, and hedge fund performance, go directly to the 10Tech Stocks to Buy According to Billionaire David Tepper.
5. Alibaba Group Holding Limited (NYSE:BABA)
Tepper’s Stake Value: $132.6 million
Percentage of David Tepper’s 13F Portfolio: 2.74%
Number of Hedge Fund Holders: 146
Alibaba Group Holding Limited (NYSE:BABA) is a multinational technology company that specializes in e-commerce, retail and cloud computing. Ranked fifth on the list of the 10 tech stocks to buy according to billionaire David Tepper, Alibaba Group Holding Limited (NYSE:BABA) has a market capitalization of $391.96 billion.
David Tepper’s Appaloosa Management currently owns 585,000 shares of Alibaba Group Holding Limited (NYSE:BABA), amounting to $132.6 million in worth and representing 2.74% of the fund’s portfolio. At the end of the second quarter of 2021, 146 hedge funds in the database of Insider Monkey held stakes worth $16.79billion in Alibaba Group Holding Limited (NYS:BABA), down from 135 in the previous quarter with stakes worth $15.4 billion.
On September 6, KGI Securities initiated coverage of Alibaba Group Holding Limited (NYSE: BABA) with a “Neutral” rating and HK$205 price target.
In the Q2 2021 investor letter of RV Capital Management, the fund named Alibaba Group Holding Limited (NYSE:BABA) as its most consequential capital allocation decision. Here is what they had to say:
“The most consequential capital allocation decision in the first half-year was to increase our investment China by purchasing a new position in Alibaba.
I wrote about China in my 2019 half-year letter but given the heightened pessimism in the West today around China, I thought it was worth updating you on my thinking before getting to the discussion of our new investment in Alibaba.
I am conscious that the segue from a discussion on humility to one on China may be jarring. There are, for sure, many people better placed than me to discuss China. I hope, though, that there is value in the perspective of an informed outsider who has invested through several market panics in the past.
What Just Happened?
Over recent months, there has been a growing sense of pessimism bordering on panic about China and its internet companies. From peak in February to trough, aggregate paper losses of the largest Chinese Internet stocks have exceeded US$ 1 trillion.
The roots of the panic can be traced back to last November. Jack Ma, Alibaba’s iconic founder and major shareholder in Ant Group, gave a speech which was critical of financial regulation in China. Shortly afterwards, Ant Group withdrew its IPO plan, giving rise to fears that the Chinese government was turning its back on the market economy. Since then, regulation has spread to other sectors and increased in both frequency and intensity, heightening these fears…” (Click here to see the full text)
