In this article, we discuss 5 tech stocks to buy now according to Robert Pitts’ Steadfast Capital. If you want to read our detailed analysis of Pitts’ history and hedge fund performance, go directly to 10 Tech Stocks to Buy Now According to Robert Pitts’ Steadfast Capital.
5. Block, Inc. (NYSE:SQ)
Steadfast Capital’s Stake Value: $121,472,000
Percentage of Steadfast Capital’s 13F Portfolio: 2.02%
Number of Hedge Fund Holders: 96
Block, Inc. (NYSE:SQ), previously Square, Inc., is a San Francisco, California-based financial services and digital payments startup. Block also owns the following businesses: Cash App, Afterpay, Weebly, and TIDAL. Block, Inc. (NYSE:SQ) and Blockstream began construction on a solar- and battery-powered bitcoin (BTC-USD) mining plant in Texas on April 8, using Tesla, Inc. (NASDAQ:TSLA) solar and storage technologies.
Overall, 96 hedge funds in Insider Monkey’s database were bullish on Block, Inc. (NYSE:SQ) in Q3, down from 98 in the previous quarter. These stakes are valued at over $5.96 billion.
RiverPark Funds, in its Q1 2021 investor letter, mentioned Block, Inc. (NYSE:SQ). Here is what the fund said:
“We established a position in leading Financial Technology provider Block, Inc. (NYSE:SQ) during the quarter. Through one integrated system, Block, Inc. (NYSE:SQ) is a hybrid of two businesses: its Seller Business (charging small and medium-sized businesses about 3% for transaction payment processing, plus other services such as instant funds access, and software for everything from customer engagement to payroll), and its Cash App (originally for person-to-person cash transfers and now a growing digital financial services provider for consumers). …” (Click here to see the full text)
4. Okta, Inc. (NASDAQ:OKTA)
Steadfast Capital’s Stake Value: $235,283,000
Percentage of Steadfast Capital’s 13F Portfolio: 3.92%
Number of Hedge Fund Holders: 52
Okta, Inc. (NASDAQ:OKTA) is a company that provides businesses with an identity management platform. Single sign-on, multi-factor authentication, API access management, authentication, user management, and lifecycle management are some of the products offered by Okta, Inc. (NASDAQ:OKTA).
On April 5, KeyBanc analyst Michael Turits trimmed Okta, Inc. (NASDAQ:OKTA)’s price estimate from $225 to $190, citing lower peer multiples and more performance risk following the company’s recent partner breach. The analyst, however, maintained an Overweight recommendation on the stock. On March 22, Okta, Inc. (NASDAQ:OKTA) revealed a security compromise perpetrated by the Lapsus$ hacker gang.
Steadfast Capital also strengthened its position in Okta, Inc. (NASDAQ:OKTA) by buying 118,128 additional shares in the fourth quarter of 2021. This makes their stake in Okta, Inc. (NASDAQ:OKTA) 1.05 million shares worth $235.28 million.
By the end of the fourth quarter of 2021, Insider Monkey identified 52 hedge funds that had stakes in Okta, Inc. (NASDAQ:OKTA). These stakes were worth a total of $2.11 billion. As of April 11, 2022, Christopher Lyle of SCGE Management was the lead stakeholder of Okta, Inc. (NASDAQ:OKTA). The fund owned more than 1.79 million shares of the stock, worth $400.59 million.
3. Wix.com Ltd. (NASDAQ:WIX)
Steadfast Capital’s Stake Value: $265,661,000
Percentage of Steadfast Capital’s 13F Portfolio: 4.43%
Number of Hedge Fund Holders: 29
Wix.com Ltd. (NASDAQ:WIX) is a cloud-based website design and development platform. Wix.com Ltd. (NASDAQ:WIX) provides web templates, web hosting, a web editor, SEO tools, a site builder, a logo creator, and e-mail marketing services.
After Wix.com Ltd. (NASDAQ:WIX)’s Q4 results, JMP Securities analyst Andrew Boone cut his price target to $140 from $250, citing that collections and revenue were 4% and 1% below estimate, respectively, but maintained an Outperform rating on the stock.
The hedge fund of Robert Pitts entered the fourth quarter of 2021 with 1.68 million shares of Wix.com Ltd. (NASDAQ:WIX) in the portfolio worth around $265.66 million. The company has featured on the Pitts’ portfolio since the fourth quarter of 2014. Steadfast Capital is the leading shareholder of Wix.com Ltd. (NASDAQ:WIX).
According to Insider Monkey’s database, 29 hedge funds had a stake in Wix.com Ltd. (NASDAQ:WIX) as of Q4 2021. The total value of their holdings was $821.01 million.
In its fourth quarter 2021 investor letter, ClearBridge Investments, mentioned Wix.com Ltd. (NASDAQ:WIX). Here is what the fund said:
“Strength in companies like New Relic offset weakness in highermultiple growth names that were dragged down by negative sentiment or short-term execution issues. Shares of Wix.com, for example, continued to lose momentum after a surge in demand for its web-based tools to create and manage desktop and mobile websites during the height of pandemic lockdowns. A leading beneficiary of a shift to a digital work and home environment, Wix sold off as it faced tough comparisons to the year ago period and was hurt by a rise in yields that impacted most long duration growth companies.”
2. Microsoft Corporation (NASDAQ:MSFT)
Steadfast Capital’s Stake Value: $372,845,000
Percentage of Steadfast Capital’s 13F Portfolio: 6.21%
Number of Hedge Fund Holders: 262
Microsoft Corporation (NASDAQ:MSFT) is a multinational corporation that creates, licenses, and maintains the software, services, devices, and solutions. On February 8, Morgan Stanley analyst Keith Weiss maintained an Overweight rating and $372 price target on Microsoft Corporation (NASDAQ:MSFT).
With 26.84 million shares worth more than $9.03 billion, Washington-based investment company Fisher Asset Management is the largest shareholder of Microsoft Corporation (NASDAQ:MSFT) among hedge funds tracked by Insider Monkey.
In the fourth quarter, Steadfast Capital sold 737,708 shares of Microsoft Corporation (NASDAQ:MSFT), reducing its remaining stake by about 40%. At of the end of the fourth quarter, the hedge fund held more than 1.11 million shares of Microsoft Corporation (NASDAQ:MSFT), worth about $372.85 million.
According to Insider Monkey, the number of hedge funds following Microsoft Corporation (NASDAQ:MSFT) grew to 262 in Q4 from 250 the previous quarter. These stakes hold a consolidated value of $75.67 billion, up from $65.88 billion.
In its Q4 2021 investor letter, Baron Opportunity Fund mentioned Microsoft Corporation (NASDAQ:MSFT). Here is what the fund said:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter, following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft’s results continued to be strong across the board, with total revenue growing 20% in constant currency, beating Street estimates by 3%; an acceleration in Commercial Cloud revenue to 34% constant-currency growth; operating margins expanding to just under 45%; earnings growth of 23%; and free cash flow growth of 30%. We believe the company is positioned to deliver 13% to 15% organic growth over the next three years, underpinned by total addressable market expansion and continued market share gains across its disruptive cloud product portfolio.”
1. Fidelity National Information Services, Inc. (NYSE:FIS)
Steadfast Capital’s Stake Value: $374,872,000
Percentage of Steadfast Capital’s 13F Portfolio: 6.25%
Number of Hedge Fund Holders: 75
Fidelity National Information Services, Inc. (NYSE:FIS) is a technology, solutions, and services company that works with merchants, banks, and capital markets firms. Merchant, Banking, Capital Markets, and Corporate and Others are the segments through which Fidelity National Information Services, Inc. (NYSE:FIS) operates.
Fidelity National Information Services, Inc. (NYSE:FIS) shares have returned 14.62% to investors over the course of the past month as of April 12. According to the 13F filings for the fourth quarter of 2021, Steadfast Capital held over 3.43 million shares of Fidelity National Information Services, Inc. (NYSE:FIS), amounting to more than $374.87 million in worth and representing 6.25% of the fund’s portfolio value.
At the end of the fourth quarter of 2021, Fidelity National Information Services, Inc. (NYSE:FIS) was in 75 hedge funds’ portfolios. There were 69 hedge funds in our database with Fidelity National Information Services, Inc. (NYSE:FIS) holdings at the end of the previous quarter. According to Insider Monkey’s fourth quarter database, Select Equity Group is the largest shareholder in Fidelity National Information Services, Inc. (NYSE:FIS), with 8.17 million shares valued at $891.53 million.
Baron Funds, in its Q3 2021 investor letter, mentioned Fidelity National Information Services, Inc. (NYSE:FIS) and discussed its stance on the firm. Here is what the fund said:
“Fidelity National Information Services, Inc. provides software to financial institutions and enables merchants to accept electronic payments. The company reported solid quarterly financial results that exceeded expectations and raised annual guidance for revenue and earnings. However, the stock fell due to concerns that Fidelity National’s legacy technology is losing market share to newer competitors with more modern technology. We believe these concerns are overblown and that Fidelity National remains well positioned to grow revenues organically at a high single-digit rate and earnings at a double-digit rate over time.”
You can also take a peek at 8 Best Energy Stocks to Buy According to Stuart Zimmer’s Hedge Fund and 10 Stocks to Buy According to Canyon Capital Advisors.
