In this article, we discuss 5 tech to buy according to billionaire Philippe Laffont. If you want our detailed analysis of these stocks, go directly to 10 Tech Stocks to Buy According to Billionaire Philippe Laffont.
5. PayPal Holdings, Inc. (NASDAQ:PYPL)
Coatue Management’s Stake Value: $755,429,000
Percentage of Coatue Management’s 13F Portfolio: 3.07%
Number of Hedge Fund Holders: 123
PayPal Holdings, Inc. (NASDAQ:PYPL), a financial technology company supporting online money transfers, is one of the best tech stocks to buy according to billionaire Philippe Laffont. As of September this year, Coatue Management holds 2.90 million shares worth $755.4 million, representing 3.07% of the firm’s Q3 securities.
In the third quarter earnings, published on November 8, PayPal Holdings, Inc. (NASDAQ:PYPL) posted an EPS of $1.11, beating estimates by $0.03. The revenue increased 13.24% year-over-year to $6.18 billion, but missed estimates by $51.87 million.
Wedbush analyst Moshe Katri lowered the price target on PayPal Holdings, Inc. (NASDAQ:PYPL) to $220 from $240 and kept an Outperform rating on the shares on December 20, citing reduced consumer spending due to inflationary pressures.
As of Q3, 123 hedge funds tracked by Insider Monkey were bullish on PayPal Holdings, Inc. (NASDAQ:PYPL), down from 143 funds in the preceding quarter. Terry Smith’s Fundsmith LLP is the biggest PayPal Holdings, Inc. (NASDAQ:PYPL) stakeholder, with 12.28 million shares worth $3.19 billion.
Here is what Baron Opportunity Fund has to say about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q3 2021 investor letter:
“PayPal Holdings, Inc. – PayPal first caught consumers’ attention as a peer-to-peer digital payment application, particularly as a convenient and trustworthy way for eBay buyers to pay eBay sellers in the early days of online shopping. Over the years it expanded to become a near ubiquitous online retail payments platform, while also offering other shopping tools and digital services, such as digital wallet, bill pay, Buy Now-Pay Later, crypto-currency, in-store retail, and more. According to PayPal’s CEO, these new acts enabled the company to increase the TAM it “play[s] in” by “over six times in the last three years.” PayPal has 403 million active accounts today and is on its way towards its 750 million target by 2025 and 1 billion longer term, for a total TAM sized at over $1 trillion.”
4. Kanzhun Limited (NASDAQ:BZ)
Coatue Management’s Stake Value: $814,190,000
Percentage of Coatue Management’s 13F Portfolio: 3.31%
Number of Hedge Fund Holders: 18
Kanzhun Limited (NASDAQ:BZ) is a Chinese holding company offering online recruitment services, connecting job seekers and enterprise users through its interactive mobile application. Kanzhun Limited (NASDAQ:BZ), on November 23, posted its Q3 results. EPS in the period totaled $0.13, beating estimates by $0.02. The $189.58 million revenue also outperformed estimates by $3.87 million.
Coatue Management, as of the third quarter of 2021, holds more than 23 million shares worth $814.1 million, representing 3.31% of the firm’s total 13F portfolio. The hedge fund increased its stake in Kanzhun Limited (NASDAQ:BZ) by 2143% in Q3.
A total of 18 hedge funds reported owning stakes in Kanzhun Limited (NASDAQ:BZ) at the end of September, worth $1.17 billion. This is compared to 26 funds being bullish on the stock in the prior quarter, with stakes valued at $447.7 million.
One of the largest Kanzhun Limited (NASDAQ:BZ) stakeholders from Q3 was Josh Resnick’s Jericho Capital Asset Management, with 2.26 million shares worth $81.4 million.
3. Meta Platforms, Inc. (NASDAQ:FB)
Coatue Management’s Stake Value: $829,930,000
Percentage of Coatue Management’s 13F Portfolio: 3.37%
Number of Hedge Fund Holders: 248
Philippe Laffont, via Coatue Management, owns 2.44 million shares of Meta Platforms, Inc. (NASDAQ:FB), worth $829.93 million, representing 3.37% of the firm’s total investments.
Loop Capital analyst Alan Gould on December 20 lowered the price target on Meta Platforms, Inc. (NASDAQ:FB) to $380 from $420 and kept a Buy rating on the shares. Gould added, however, that the negative reputational issues of Meta Platforms, Inc. (NASDAQ:FB) are already discounted in the stock at current levels, and he believes that the shares already trade at an “undemanding valuation”.
A total of 248 hedge funds reported owning stakes in Meta Platforms, Inc. (NASDAQ:FB) in Q3 2021, worth $38.5 billion. Fisher Asset Management, one of the leading Meta Platforms, Inc. (NASDAQ:FB) stakeholders, increased its stake in the company by 54% in the third quarter. Billionaire Ken Fisher’s fund holds 7.59 million shares worth $2.57 billion.
Here is what Canterbury Tollgate has to say about Meta Platforms, Inc. (NASDAQ:FB) in its Q3 2021 investor letter:
“To say traditional media is anti-Facebook would not be an overstatement. An already intense and multi-year critique of (or attack on) Facebook has ratcheted up in recent weeks. Facebook’s research efforts have been reported on, if often derided, for nearly a decade. Going back to 2014, Slate.com called their research practices “unethical” when FB tried to study the impact social posts had on users. Now those efforts have been turned against them for the kill shot.
My job is to observe, assess, and allocate. Not to commentate on all the whims and wishes of media narrative. However, in the case of Facebook I cannot avoid going into some detail re: the onslaught against them, which I find to be most unwarranted and insincere.
Last month the Wall Street Journal ran a five-piece series titled “The Facebook Files” which allegedly shows how toxic Instagram is for teens. The foundation of their argument was a single slide from an internal presentation claiming, based on FB’s own research, that of teens who had a negative self-image, one-third said Instagram “made them feel worse.”iii Somehow the implication here is that this is not an inescapable aspect of either the human psyche and/or society-at large, but that it is of Facebook’s doing…” (Click here to see the full text)
2. Snowflake Inc. (NYSE:SNOW)
Coatue Management’s Stake Value: $1,182,826,000
Percentage of Coatue Management’s 13F Portfolio: 4.81%
Number of Hedge Fund Holders: 73
Coatue Management owns 3.91 million shares of Snowflake Inc. (NYSE:SNOW) as of September this year, worth $1.18 billion, representing 4.81% of the fund’s total 13F securities. Snowflake Inc. (NYSE:SNOW) is an on-demand data warehousing company from Montana.
Snowflake Inc. (NYSE:SNOW), on December 1, reported its Q3 earnings. EPS in the quarter totaled $0.04, beating estimates by $0.09. The quarterly revenue jumped 109.52%, reaching $334.44 million, outperforming estimates by $28.32 million.
On December 6, Credit Suisse analyst Phil Winslow raised the price target on Snowflake Inc. (NYSE:SNOW) to $465 from $455 and kept an Outperform rating on the shares. The analyst observed that Snowflake Inc. (NYSE:SNOW) reported “strong” Q3 results with both revenue and operating margins well ahead of consensus.
Brad Gerstner’s Altimeter Capital Management is the largest Snowflake Inc. (NYSE:SNOW) stakeholder from the third quarter, with more than 21 million shares worth $6.36 billion. Overall, 73 hedge funds in the Q3 database of Insider Monkey were long Snowflake Inc. (NYSE:SNOW), up from 70 funds in the previous quarter.
Here is what RiverPark Large Growth Fund has to say about Snowflake Inc. (NYSE:SNOW) in its Q3 2021 investor letter:
“Following torrid second quarter results, Snowflake, a position we initiated in March, was also a top contributor for 3Q. The company reported 103% year-over-year product revenue growth, 169% net revenue retention and a 74% non-GAAP gross margin, up 700 basis points year over year. Management also raised guidance to 92% product revenue growth for the full year.
Snowflake offers cloud-based data storage and analytics, generally termed “data warehouse-as-a service.” The data warehousing market—created by the massive, growing amount of user, customer and account data and the need to search and analyze it—has historically stored its data on physical servers located on-premises. Incremental warehouse data capacity and renewals are expected to be stored off-premises on cloud servers, with more than 75% of databases projected to move to the cloud by 2022, resulting in a nearly $100 billion market.
Snowflake provides complex data management and analytical tools for its customers, eliminates the need for users to manage infrastructure, is fully scalable for each customer, and can be run on any of the Amazon, Microsoft, or Google cloud platforms. The company also has a unique, customer-aligned billing model based on usage. With the company’s capital expenditure-light model—Snowflake uses the public cloud for hosting—we expect FCF to grow much faster than revenue growth, which we forecast to grow comfortably more than 50% per year for the next several years. Additionally, we have great confidence in the SNOW management team, which previously had an enormously successful run guiding one of our other core Cloud software holdings, ServiceNow.”
1. DoorDash, Inc. (NYSE:DASH)
Coatue Management’s Stake Value: $1,947,585,000
Percentage of Coatue Management’s 13F Portfolio: 7.92%
Number of Hedge Fund Holders: 42
DoorDash, Inc. (NYSE:DASH) is a California-based company that operates an online food ordering and food delivery platform. Being the largest tech stock holding in the Q3 portfolio of Philippe Laffont, DoorDash, Inc. (NYSE:DASH) stock represents 7.92% of the billionaire’s total investments. Laffont, via Coatue Management, holds a $1.94 billion position in the company.
On December 15, JPMorgan analyst Doug Anmuth lowered the price target on DoorDash, Inc. (NYSE:DASH) to $175 from $220 and kept a Neutral rating on the shares. Heading into 2022, the analyst believes the internet sector is in a stronger position than pre-pandemic levels amid increased digitization of the economy. However, he expects “more varied stock performance to continue,” with company-specific operations a bigger factor into post-pandemic normalization. The analyst sees lower levels of growth as many companies face tough comps and move toward normalization.
In Q3 2021, 42 hedge funds were bullish on DoorDash, Inc. (NYSE:DASH), down from 45 funds in the preceding quarter. The leading DoorDash, Inc. (NYSE:DASH) stakeholder from Q3 is Tiger Global Management, with over 11 million shares worth $2.27 billion.
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