5 Technology Stocks to Buy Now According to Dan Loeb

1. Amazon.com, Inc. (NASDAQ:AMZN)

Third Point’s Stake Value: $783,570,000

Percentage of Third Point’s 13F Portfolio: 5.46%

Number of Hedge Fund Holders: 279

Jeff Bezos’ Amazon.com, Inc. (NASDAQ:AMZN) is a multinational tech giant that specializes in e-commerce, cloud computing, digital streaming, and artificial intelligence. Amazon.com, Inc. (NASDAQ:AMZN) is one of the top technology stocks to buy according to Dan Loeb’s Third Point, and the fund owns a $783.5 million stake in the company, representing 5.46% of the total 13F portfolio. 

Amazon.com, Inc. (NASDAQ:AMZN)’s revenue for 2021 stood at $469.8 billion, a growth of 21.70% as compared to 2020, when revenue for the year came in at $386 billion. Amazon.com, Inc. (NASDAQ:AMZN)’s 2021 net income was $33.3 billion, an increase from the 2020 net income of $21.3 billion. 

On March 25, Evercore ISI analyst Mark Mahaney kept an Outperform rating and a $4,300 price target on Amazon.com, Inc. (NASDAQ:AMZN) shares and he also “modestly” lifted his FY23 and FY24 estimates above the Street view for Amazon.com, Inc. (NASDAQ:AMZN), calling it his number one mega cap internet long idea. 

Elite hedge funds are piling into Amazon.com, Inc. (NASDAQ:AMZN). Among the hedge funds tracked by Insider Monkey, 279 funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) in Q4 2021, up from 242 funds in the earlier quarter. Boykin Curry’s Eagle Capital Management is a significant stakeholder of the company, with 677,828 shares worth $2.26 billion. 

Here is what Mercator International Opportunity Fund has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2021 investor letter:

“Transformative technologies often generate euphoria. People are excited by the big new thing that is changing the world. We saw this pattern with the boom of westward canal transportation at the dawn of the nineteenth century. Railway stocks similarly attracted large numbers of eager investors a few decades later. Then came the electrification of America, the telephone, and the automobile industry, to name just a few transformative technologies.

The initial euphoric phase always ends with a reality check. Valuations come back to earth. At the end of the cycle, only a few companies remain standing. A shakeout has a way of clarifying the field of opportunities.

For example, readers may recall that when the internet bubble burst two decades ago, Amazon.com, Inc. (NASDAQ:AMZN) stock suffered greatly but pet.com was gone. For those investors who had stayed on the sidelines, this was an excellent time to buy Amazon. The company’s business model had shown its merits and competition was rapidly shrinking. The stock price was now also much more attractive.”

You can also take a look at 10 Software Stocks to Buy Now According to Jim Davidson’s Silver Lake Partners and 10 Consumer Technology Stocks to Invest In According to Ken Fisher’s Fisher Asset Management. 

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