In this article, we discuss the 5 technology stocks to buy according to Mario Gabelli. If you want to read our detailed analysis of these stocks, go directly to the 10 Technology Stocks to Buy According to Billionaire Mario Gabelli.
5. Apple Inc. (NASDAQ: AAPL)
Number of Hedge Fund Holders: 138
Apple Inc. (NASDAQ: AAPL) is ranked fifth on our list of 10 technology stocks to buy according to Mario Gabelli. The firm makes and sells electronics and computer software and is headquartered in California. Securities filings show that GAMCO Investors owned 220,213 shares in the company at the end of June 2021 worth $30 million, representing 0.25% of the portfolio.
On September 1, investment advisory Wolfe Research upgraded Apple Inc. (NASDAQ: AAPL) stock to Peer Perform from Underperform and raised the price target to $155 from $135, noting that the demand for the new iPhone was rising.
At the end of the second quarter of 2021, 138 hedge funds in the database of Insider Monkey held stakes worth $145 billion in Apple Inc. (NASDAQ: AAPL), up from 127 in the preceding quarter worth $131 billion.
In its Q1 2021 investor letter, Distillate Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ: AAPL) was one of them. Here is what the fund said:
“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”
4. PayPal Holdings, Inc. (NASDAQ: PYPL)
Number of Hedge Fund Holders: 143
PayPal Holdings, Inc. (NASDAQ: PYPL) is a California-based technology company with core interests in the digital payments industry. It is placed fourth on our list of 10 technology stocks to buy according to Mario Gabelli. 13F filings reveal that GAMCO Investors owned 114,063 shares in the company at the end of the second quarter of 2021 worth $33 million, representing 0.28% of the portfolio.
On July 29, investment advisory Morgan Stanley reiterated an Overweight rating on PayPal Holdings, Inc. (NASDAQ: PYPL) stock and raised the price target to $340 from $337, appreciating the earnings results posted by the firm for the second quarter.
At the end of the second quarter of 2021, 143 hedge funds in the database of Insider Monkey held stakes worth $16 billion in PayPal Holdings, Inc. (NASDAQ: PYPL), the same as in the preceding quarter worth $14 billion.
In its Q4 2020 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ: PYPL) was one of them. Here is what the fund said:
“For the full year 2020, one of the top performers was PayPal, which we purchased in 2019, the company continues to take market share in digital payments and has seen an acceleration in user adoption and engagement, especially within their “silver tech” or older user demographic. We expect many more years of ongoing double-digit growth from their various business segments and new initiatives.”
3. Resideo Technologies, Inc. (NYSE: REZI)
Number of Hedge Fund Holders: 28
Resideo Technologies, Inc. (NYSE: REZI) is a Texas-based firm that sells smart solutions to the residential and commercial markets. It is ranked third on our list of 10 technology stocks to buy according to Mario Gabelli. Regulatory filings reveal that GAMCO Investors owned 1.2 million shares in the company at the end of June 2021 worth $36 million, representing 0.31% of the portfolio.
In March, investment advisory Morgan Stanley initiated coverage of Resideo Technologies, Inc. (NYSE: REZI) stock with an Equal Weight rating and a price target of $33, noting that the firm was in the early stages of transforming the business into the technology domain.
Out of the hedge funds being tracked by Insider Monkey, New York-based firm Praesidium Investment Management Company is a leading shareholder in Resideo Technologies, Inc. (NYSE: REZI) with 7.4 million shares worth more than $224 million.
2. Microsoft Corporation (NASDAQ: MSFT)
Number of Hedge Fund Holders: 238
Microsoft Corporation (NASDAQ: MSFT) is placed second on our list of 10 technology stocks to buy according to Mario Gabelli. The company operates as a diversified technology firm and is headquartered in Washington. According to the latest data, GAMCO Investors owned 154,370 shares in the company at the end of the second quarter of 2021 worth $41 million, representing 0.35% of the portfolio.
On August 20, investment advisory UBS kept a Buy rating on Microsoft Corporation (NASDAQ: MSFT) stock and raised the price target to $350 from $325, noting that the advisory had improved confidence in the future of the firm as it expected a price raise in a key product.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ: MSFT) with 24.8 million shares worth more than $6.7 billion.
In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ: MSFT) was one of them. Here is what the fund said:
“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”
1. Alphabet Inc. (NASDAQ: GOOG)
Number of Hedge Fund Holders: 155
Alphabet Inc. (NASDAQ: GOOG) is ranked first on our list of 10 technology stocks to buy according to Mario Gabelli. The firm owns and runs several internet-related platforms and is headquartered in California. According to the latest filings, GAMCO Investors owned 24,270 shares in the company at the end of June 2021 worth $60 million, representing 0.51% of the portfolio.
On July 28, investment advisory Wedbush kept an Outperform rating on Alphabet Inc. (NASDAQ: GOOG) stock and raised the price target to $3,424 from $3,127, noting that the firm had delivered another “stellar quarter” in terms of earnings.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in the firm with 2.9 million shares worth more than $7.3 billion.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ: GOOG) was one of them. Here is what the fund said:
“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”
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