In this article, we discuss the top 5 tech stocks to invest in today according to John Armitage’s Egerton Capital. If you want a detailed analysis of the technology sector, go directly to the 10 Tech Stocks to Invest in Today According to John Armitage’s Egerton Capital.
5. Netflix, Inc. (NASDAQ:NFLX)
Egerton Capital’s Stake Value: $793,578,000
Percentage of Egerton Capital’s 13F Portfolio: 3.94%
Number of Hedge Fund Holders: 113
Armitage’s Egerton Capital owns 1.5 million shares in Netflix, Inc. (NASDAQ:NFLX) as of the end of the second quarter, amounting to $793.5 million, representing 3.94% of Armitage’s 13F portfolio.
At the end of June, 113 hedge funds tracked by Insider Monkey were bullish on Netflix, Inc. (NASDAQ:NFLX), up from 110 in the previous quarter.
On October 10, Netflix, Inc. (NASDAQ:NFLX) estimated that its latest blockbuster TV series, Squid Game, will create almost $900 million in value for the company according to Bloomberg analyst Lucas Shaw.
Polen Capital mentioned Netflix, Inc. (NASDAQ:NFLX) in its Q2 2021 investor letter. Here is what they said:
“For Netflix, we believe the underlying businesses for the company remain strong. With Netflix, we anticipate content spending to moderate as subscriber growth continues, which we believe should result in attractive double-digit earnings and cash flow growth over the next five years and beyond.”
4. Facebook, Inc. (NASDAQ:FB)
Egerton Capital’s Stake Value: $854,930,000
Percentage of Egerton Capital’s 13F Portfolio: 4.24%
Number of Hedge Fund Holders: 266
Armitage’s Egerton Capital owns 2.45 million shares in Facebook, Inc. (NASDAQ:FB) as of the end of the second quarter, valued at $854.9 million, representing 4.24% of Armitage’s 13F portfolio.
The stock is immensely popular with hedge funds. 266 funds in Insider Monkey’s database were long Facebook, Inc. (NASDAQ:FB) at the end of June, up from 257 in the previous quarter.
On October 15, Mark Mahaney from Evercore ISI kept an Outperform rating on the stock, setting a price target of $450. However, he added Facebook, Inc. (NASDAQ:FB) to the “Tactical Underperform List” at Evercore ISI, due to tougher comps and the challenging online retail environment.
Wedgewood Partners mentioned Facebook, Inc. (NASDAQ:FB) in its Q3 2021 investor letter. Here is what they said:
“Facebook detracted from performance despite posting a staggering +56% growth in advertising revenues. Much of the stock’s underperformance was driven by non operating concerns that we view as mostly political in nature. The Company’s digital properties command a massive audience of over 2.7 billion daily users, so any government or state actor would be able to wield tremendous power by controlling that audience and it should not be a surprise when those actors attempt to do that. However, Facebook has invested aggressively in its content curation capabilities that address many of the concerns raised by media and political critics. We continue to carry Facebook at our maximum weighting as the stock is trading in line with a market multiple despite unrivaled competitive positioning and rapid growth, representing one of the best risk-rewards available in the market.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
Egerton Capital’s Stake Value: $1,265,270,000
Percentage of Egerton Capital’s 13F Portfolio: 6.28%
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) is an immensely popular tech stock according to John Armitage’s Egerton Capital. The American tech company is a multinational focusing on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Five technology firms in the United States, and is the most valuable global brand. Amazon.com, Inc. (NASDAQ:AMZN) has had vast economic and cultural influence worldwide.
Armitage’s Egerton Capital, as of the end of the second quarter, owns 367,794 shares in Amazon.com, Inc. (NASDAQ:AMZN), valued at $1.26 billion, and making up 6.28% of Armitage’s 13F portfolio.
Amazon.com, Inc. (NASDAQ:AMZN) is the most popular tech stock amongst the smart money. Of the hedge funds tracked by Insider Monkey, 271 funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) at the end of June, up from 243 in the previous quarter.
Baird analyst Colin Sebastian kept an Outperform rating on the stock on October 13, with a price target of $4000.
Worm Capital LLC mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter. Here is what they said:
“Our core portfolio as of this writing—TSLA, SPOT, SHOP, ABNB, and AMZN—are all premier examples of companies that use the concept of aggregation of marginal gains to continuously improve their value proposition for customers. After all, what is innovation if not just a continuous search for fractional advantages in business?
Amazon, for instance, accumulates marginal gains by compressing their costs year after year for consumers, creating an infrastructure and logistics network unrivaled by its peers. In the short-term, the market can often misunderstand the intentions of the “marginal gain accumulators,” but over time, their value-creation becomes obvious in hindsight.”
2. Microsoft Corporation (NASDAQ:MSFT)
Egerton Capital’s Stake Value: $1,361,949,000
Percentage of Egerton Capital’s 13F Portfolio: 6.77%
Number of Hedge Fund Holders: 238
As of the end of June, Armitage’s Egerton Capital owns 5.02 million shares in Microsoft Corporation (NASDAQ:MSFT), amounting to $1.36 billion, representing 6.77% of Armitage’s 13F portfolio.
Out of the 873 hedge funds tracked by Insider Monkey, 238 funds were bullish on Microsoft Corporation (NASDAQ:MSFT) at the end of June, with stakes worth $62.46 billion, down from 251 in the previous quarter, with stakes valued at $58.9 billion.
Baron Opportunity Fund mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q2 2021 investor letter. 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 was a top contributor in the period because it trades at reasonable free cash flow and earnings valuations, has cloud and digital transformation tailwinds at its back, reported a solid March quarter, and beat Street expectations by a wide margin. Microsoft’s results continued to be strong across the board, with Azure cloud computing revenues up 46% in constantcurrency (“cc”) terms and commercial cloud bookings growth of 38% cc, the best in years. Microsoft also reported robust profitability growth, with operating income expanding 31% and GAAP earnings up 45%. We believe the company is well positioned for continued solid growth and profitability through market share gains as more companies look to transform and digitize their businesses as they move operations to the cloud.”
1. Alphabet Inc. (NASDAQ:GOOG)
Egerton Capital’s Stake Value: $2,210,331,000
Percentage of Egerton Capital’s 13F Portfolio: 10.98%
Number of Hedge Fund Holders: 155
Armitage’s Egerton Capital owns 881,903 shares in Alphabet Inc. (NASDAQ:GOOG) as of the end of June, valued at $2.21 billion, and making up 10.98% of Armitage’s 13F portfolio.
At the end of June, 155 hedge funds in Insider Monkey’s database were long Alphabet Inc. (NASDAQ:GOOG), down from 159 in the previous quarter.
On October 12, JP Morgan analyst Doug Anmuth kept an Overweight rating on Alphabet Inc. (NASDAQ:GOOG)’s shares, with a price target of $3250.
Wedgewood Partners mentioned Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 portfolio. Here is what they said:
“Alphabet’s core Google search business accelerated to multiyear highs, up nearly +70% driven in part by advertisers rushing to the Company’s Android platform. We estimate Android runs on nearly three-quarters of all smartphones; however, its share of ad spend is lower. Recent policy changes to Apple’s iOS operating system have made it more difficult for advertisers to get a return on its ad spend across the Apple ecosystem. These changes should help close the gap between Android and iOS advertising share and sustain Alphabet’s torrid growth.”
You can also take a look at Billionaire DE Shaw’s Top 10 Stock Picks and 10 High Yield Dividend Champions.
