In this article, we will take a look at the 5 tech stocks to buy according to billionaire Philippe Laffont. If you want to read our comprehensive analysis of Laffont’s history, investment philosophy, and hedge fund performance, go directly to the 10 Tech Stocks to Buy According to Billionaire Philippe Laffont.
5. Facebook, Inc. (NASDAQ:FB)
Coatue Management’s Stake Value: $994 million
Percentage of Coatue Management’s 13F Portfolio: 3.89%
Number of Hedge Fund Holders: 266
Facebook, Inc. (NASDAQ:FB) is a multinational social networking services company based in Menlo Park, California. The tech titan has a market capitalization of $945.47 billion and is ranked fifth on the list of the 10 tech stocks to buy according to billionaire Philippe Laffont.
Philippe Laffont’s Coatue Management currently holds over 2.85 million shares of Facebook, Inc. (NASDAQ:FB). These shares amount to $994 million and accounts for 3.89% of the fund’s portfolio value. At the end of the second quarter of 2021, 266 hedge funds in the database of Insider Monkey held stakes worth $42 billion in Facebook, Inc. (NASDAQ:FB), compared to 257 in the previous quarter’s worth $40 billion.
According to its earnings report for the second quarter of 2021, Facebook, Inc. (NASDAQ:FB) had an EPS of $3.61, beating the estimated EPS by $0.58. Facebook, Inc. (NASDAQ:FB) also reported revenues amounting to $29.08 billion, surpassing market predictions by $1.19 billion.
On September 30, RBC Capital analyst Brad Erickson initiated coverage of Facebook, Inc. (NASDAQ:FB) with an Outperform rating alongside a $425 price target on the company’s shares.
4. Snowflake, Inc. (NYSE:SNOW)
Coatue Management’s Stake Value: $1.05 billion
Percentage of Coatue Management’s 13F Portfolio: 4.14%
Number of Hedge Fund Holders: 70
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage and analytics services company headquartered in Montana. The company has a market capitalization of $101.67 billion, and is ranked fourth on our list of the 10 tech stocks to buy according to billionaire Philippe Laffont.
At the end of the second quarter of 2021, 70 hedge funds in the database of Insider Monkey held stakes worth $12.5 billion in Snowflake Inc. (NYSE:SNOW). This is compared to 71 hedge funds in the preceding quarter with stake worth $12.96 billion. According to the last 13F Filings, Philippe Laffont owns over 4.37 million shares of Snowflake, Inc. (NYSE:SNOW), worth more than 1.05 billion, representing 4.14% of his investment firms investment portfolio.
On September 30, BTIG analyst Gray Powell upgraded Snowflake Inc. (NYSE:SNOW) to a Buy rating from Neutral, with a $353 price target.
RiverPark Large Growth Fund, in their Q1 2021 investor letter, mentioned their new position in Snowflake Inc. (NYSE:SNOW). Here is what the fund said:
“We also established a position in Snowflake during the quarter. 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. The cloud data platform market—storing data off-premises on cloud servers—is a relatively new $70 billion+ market. Significantly, incremental warehouse data capacity and renewals are expected to be driven by and to the cloud, with more than 75% of databases in the cloud by 2022.
Snowflake requires absolutely no infrastructure management from its users, is fully scalable for each customer, runs on Amazon, Microsoft, or Google cloud platforms, and most critically, Snowflake helps companies analyze their data. The company also has a unique, customer-aligned billing model based on usage. All of which has led to Snowflake being among the leaders of this highly fragmented market, posting 124% revenue growth last year. SNOW’s growth comes from the combination of more customers—which grew 73% last year—and customers buying more services—the company boasts an amazing 150%+ net customer retention. The company’s growing scale has also led to increasing gross margin and operating leverage, up 1,100 basis points and 8,200 basis points, respectively, over the past two years. The company has guided to FCF break-even this year, and 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.”
3. PayPal Holdings Inc. (NASDAQ:PYPL)
Coatue Management’s Stake Value: $1.08 billion
Percentage of Coatue Management’s 13F Portfolio: 4.25%
Number of Hedge Fund Holders:
Multinational financial services company PayPal Holdings Inc. (NASDAQ:PYPL) ranks third on our list of the 10 tech stocks to buy according to billionaire Philippe Laffont. The company engages in the provision of online payment systems in a number of countries across the globe. The PYPL stock’s revenue is expected to grow by 20% annually in the next 5 years.
Philippe Laffont’s Coatue Management currently holds over 3.7 million shares of PayPal Holdings Inc. (NASDAQ:PYPL). These shares amount to more than $1.08 billion and account for 4.25% of the fund’s investment portfolio. At the end of the second quarter of 2021, 143 hedge funds in the database of Insider Monkey held stakes worth $16.3 billion in PayPal Holdings, Inc. (NASDAQ:PYPL). The number of hedge funds with stakes in the company remained unchanged for the first and second quarter.
On September 9, DA Davidson analyst Christopher Brendler maintained his Buy rating on PayPal Holdings Inc. (NASDAQ:PYPL), alongside a $325 price target on the company’s shares.
2. Amazon.com, Inc. (NASDAQ:AMZN)
Coatue Management’s Stake Value: $1.49 billion
Percentage of Coatue Management’s 13F Portfolio: 5.85%
Number of Hedge Fund Holders: 271
There were 271 hedge funds in the database of Insider Monkey that held stakes in Amazon.com, Inc. (NASDAQ:AMZN) worth $60.49 billion in the second quarter of 2021, compared to 243 funds in the first quarter with total stakes amounting to approximately $50.4 billion. Coatue Management, by the end of the second quarter, held 434,399 shares of Amazon.com, Inc. (NASDAQ:AMZN) worth more than $1.49 billion and representing 5.85% of Laffont’s 13F portfolio value.
On September 30, RBC Capital analyst Brad Erickson initiated coverage of Amazon.com, Inc. (NASDAQ:AMZN) with an Outperform rating and $4,150 price target.
In the Q2 2021 investor letter of L1 Capital, the fund announced Amazon.com, Inc. (NASDAQ:AMZN) as one of its leading contributors. Here is what the fund said:
“Amazon flipped from being the largest detractor from portfolio performance in the March 2021 quarter, to one of the leading contributors in the June 2021 quarter. We took advantage of negative near-term sentiment in the March 2021 quarter to add to our Amazon investment. We continue to view Amazon as one of the best positioned businesses globally, with its share price still not reflecting fair value.”
1. DoorDash, Inc. (NYSE:DASH)
Coatue Management’s Stake Value: $1.7 billion
Percentage of Coatue Management’s 13F Portfolio: 6.74%
Number of Hedge Fund Holders: 45
DoorDash, Inc. (NYSE:DASH) is an online food ordering and food delivery company based in San Francisco, U.S, and is considered the largest food delivery company in the United States. Ranked first on the list of the 10 tech stocks to buy according to billionaire Phillipe Laffont, DoorDash, Inc. (NYSE:DASH) has a market capitalization of $72.78 billion.
Philippe Laffont’s Coatue Management currently owns 9.65 million shares in DoorDash, Inc. (NYSE:DASH), amounting to $1.7 billion in worth and accounting for 6.47% of the fund’s portfolio. In Q2 2021, 45 hedge funds held stakes in DoorDash, Inc. (NYSE:DASH), compared with 38 in the previous quarter.
On October 13, BofA analyst Michael McGovern maintained his Buy rating on DoorDash, Inc. (NYSE:DASH), alongside a $255 price target on the company’s shares.
You can also take a peek at Michael Burry Is Selling These 15 Stocks and Warren Buffett Is Selling These 10 Stocks
