In this article, we will take a detailed look at Billionaire David Tepper’s Top 10 Stock Picks.
David Alan Tepper, born on September 11, 1957, is an American billionaire hedge fund manager, businessman, and sports team owner. He is the founder and president of Appaloosa Management, a global hedge fund based in Miami Beach, Florida. Beyond finance, Tepper owns the Carolina Panthers of the National Football League (NFL) and Charlotte FC of Major League Soccer (MLS). Tepper grew up in Pittsburgh, Pennsylvania, earning a bachelor’s degree in economics from the University of Pittsburgh in 1978. He later pursued a Master of Science in Industrial Administration (MSIA) from Carnegie Mellon University in 1982. His connection to the university remained strong, culminating in a $67 million donation in 2013, after which the Tepper School of Business was named in his honor.
Over his career, Tepper has accumulated numerous accolades, cementing his status as one of the most successful hedge fund managers in the world. In 2018, he secured third place on Forbes’ list of the highest-earning hedge fund managers with $1.5 billion in annual earnings. He was repeatedly listed among Forbes’ top 25 highest-earning hedge fund managers in 2013 and 2016. A 2010 New York magazine profile described Tepper as the object of “hero worship” within the financial industry, where one investor famously referred to him as “a golden god.” His aggressive and unfiltered approach earned him a unique reputation, with plans to eventually convert his hedge fund into a family office.
Outside of finance and sports ownership, Tepper’s career includes a series of formative positions that shaped his reputation and investment philosophy. After earning his economics degree, he worked as a credit analyst at Equibank in Pittsburgh before enrolling at Carnegie Mellon. Post-MBA, he joined Republic Steel’s treasury department in Ohio and then moved to Keystone Mutual Funds in Boston. In 1985, Goldman Sachs recruited him for its newly formed high-yield credit group in New York City. Tepper quickly rose to head trader within six months, playing a crucial role in the firm’s recovery after the 1987 stock market crash by purchasing bonds from weakened financial institutions. Known for his blunt market commentary, he advised against fear-driven investment decisions during economic turbulence, famously dismissing extreme market predictions and championing the adaptability of markets and people alike.
Appaloosa Management, founded by Tepper in early 1993 after leaving Goldman Sachs, has become synonymous with high-stakes investing in distressed companies and volatile markets. Based initially in Chatham, New Jersey, the firm was established as an employee-owned investment management company with a sharp focus on distressed debt. From its inception, Appaloosa Management has specialized in investing across public equity and fixed income markets on a global scale. The firm built a reputation for its bold, contrarian investment strategy, particularly in volatile and high-risk sectors.
Appaloosa Management quickly gained recognition, generating a 61% return in 2001 through distressed bond investments, and in 2005, pivoted to lucrative opportunities in S&P stocks. Tepper’s hedge fund became known for profiting from “dicier” companies, with notable gains from MCI, Mirant, Conseco, and Marconi. In 2009, Appaloosa made about $7 billion by purchasing distressed financial stocks like Bank of America at just $3 per share during the market crash, with $4 billion going directly to Tepper’s personal wealth, making him the top-earning hedge fund manager that year.
Throughout the 1990s, Appaloosa Management earned recognition as a niche junk bond investment boutique, distinguishing itself by targeting undervalued, distressed corporate debt that other investors tended to avoid. As the hedge fund industry evolved in the 2000s, so did Appaloosa’s role and reputation, becoming widely regarded as one of the premier hedge funds in the world, known for its aggressive, high-reward investment tactics. Its core strategy continued to focus on distressed securities, but it also expanded its portfolio to include opportunities in equities and other financial instruments, consistently generating strong returns through bold market bets.
As of its most recent 13F filing for the fourth quarter of 2024, Appaloosa Management’s top ten holdings account for 66.75% of this portfolio, which reflects the firm’s high-conviction, opportunistic investment strategy, a hallmark of David Tepper’s approach.
Our Methodology
We searched through Appaloosa Management’s Q4 2024 13F filings to identify the top stocks in its portfolio. The resultant stocks are then compiled in the ascending order of the fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Billionaire David Tepper’s Top 10 Stock Picks
10. Lyft, Inc. (NASDAQ:LYFT)
Number of Hedge Fund Holders as of Q4: 55
Appaloosa Management’s Equity Stake: $174.15 Million
Lyft, Inc. (NASDAQ:LYFT) is an American transportation company providing ride-hailing services, motorized scooters, and bicycle-sharing systems, with operations across the United States and select Canadian cities.
On February 11, 2025, Lyft, Inc. (NASDAQ:LYFT) announced its financial results for the fourth quarter and full year ending December 31, 2024, marking a significant milestone in its operational and financial history. CEO David Risher hailed 2024 as a “record-smashing” year for the company, highlighting its achievement of helping 44 million people connect to transportation options. CFO Erin Brewer echoed this optimism, celebrating a year of record Gross Bookings, significant margin expansion, Lyft’s first full year of GAAP profitability, and record cash flow generation.
Financially, Lyft, Inc. (NASDAQ:LYFT) delivered outstanding results for the fourth quarter. In Q4, Gross Bookings rose 15% year-over-year to $4.3 billion, while revenue increased by 27% to $1.6 billion. The company turned a profit with net income of $61.7 million, a sharp turnaround from a net loss of $(26.3) million in Q4 2023. Net income as a percentage of Gross Bookings improved to 1.4%, compared to a loss margin of (0.7)% in the prior year’s quarter. Adjusted EBITDA grew to $112.8 million from $66.6 million in Q4 2023.
Operationally, Lyft, Inc. (NASDAQ:LYFT) saw record-breaking ride volumes, with Q4 rides up 15% year-over-year to 219 million and full-year rides increasing 17% to 828 million. Lyft provided guidance for Q1 2025, projecting rides growth in the mid-teens year-over-year. Gross Bookings for the quarter are expected to increase approximately 10% to 14%, ranging from $4.05 billion to $4.20 billion, while Adjusted EBITDA is forecasted to land between $90 million and $95 million.
Lyft, Inc. (NASDAQ:LYFT) is one of Billionaire David Tepper’s top stock picks. During the December quarter in 2024, Appaloosa Management held 13.5 million shares in the company, with a total value of over $174 million. Hedge fund sentiment also increased; according to Insider Monkey’s database, 55 hedge funds held shares in the company by the end of Q4 with a combined stake of $1.08 billion, up from 51 funds in Q3.
9. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders as of Q4: 105
Appaloosa Management’s Equity Stake: $233.30 Million
Oracle Corporation (NYSE:ORCL) is a prominent American multinational computer technology company recognized for its leadership in database software, cloud computing infrastructure, and enterprise applications. Founded in 1977, the company has grown into a global technology powerhouse, now headquartered in Austin, Texas. Oracle’s products and services are integral to organizations around the world, providing the digital foundation to manage data, support business operations, and develop applications across a wide range of industries. Oracle is ninth in the list of David Tepper’s top stock picks, with Appaloosa Management holding 1.4 million shares in the company.
On March 10, 2025, Oracle Corporation (NYSE:ORCL) announced its financial results for the third quarter of fiscal year 2025, reporting sound growth across key business areas. The company posted a 20% year-over-year increase in earnings per share, reaching $1.02. Total revenue for the quarter rose to $14.1 billion, representing a 6% increase in U.S. dollars and 8% in constant currency. Over the past twelve months, Oracle generated an impressive $20.7 billion in operating cash flow and $5.8 billion in free cash flow, indicating the company’s robust financial health and operational efficiency.
CEO Safra Catz emphasized the company’s record-breaking sales achievements during the quarter, announcing that Oracle Corporation (NYSE:ORCL) signed over $48 billion in sales contracts. The company has secured cloud agreements with major global technology leaders, including OpenAI, xAI, Meta, NVIDIA, and AMD, which significantly strengthen Oracle’s positioning in the AI and cloud markets.
Oracle Corporation (NYSE:ORCL) also announced an increase in its quarterly cash dividend. The Board of Directors declared a dividend of $0.50 per share of outstanding common stock, a 25% rise from the previous quarterly dividend of $0.40. This increased dividend will be distributed to stockholders of record as of April 10, 2025, with the payment scheduled for April 23, 2025. This decision reflects Oracle’s confidence in its financial stability and long-term growth strategy, while delivering increased returns to its shareholders.
ClearBridge Value Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q1 2025 investor letter:
“We also exited enterprise software and cloud services company Oracle Corporation (NYSE:ORCL) as its strong performance in 2024 had rerated its stock higher and narrowed the gap between our assessment of share price and intrinsic business value. This, combined with the company’s relatively high correlation to other AI holdings that we have high conviction in led us to seize the opportunity to capture gains in the stock reinvest in other areas we feel have superior risk/return profiles.”
8. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders as of Q4: 262
Appaloosa Management’s Equity Stake: $286.90 Million
Meta Platforms, Inc. (NASDAQ:META) delivered a standout financial performance in 2024. The company reported total revenue of $164.5 billion, marking a 22% increase compared to the previous year. The fourth quarter of 2024 played a particularly significant role in Meta’s annual performance, accounting for 29.4% of the year’s total revenue. In Q4 alone, Meta generated $48.4 billion in revenue and over $20.8 billion in profit, representing a 21% year-over-year revenue increase and beating market expectations. Earnings per share surged by 50% to $8.02, surpassing the forecasted $6.76.
Investor confidence in Meta Platforms, Inc. (NASDAQ:META) remained strong, with hedge fund interest surging by the end of the fourth quarter of 2024. According to Insider Monkey’s database, 262 hedge funds held stakes in the company, up from 235 in the previous quarter. Hedge fund holdings in Meta climbed to approximately $59.4 billion, reflecting investor belief in the company’s long-term strategy, dominant presence in digital advertising, and ability to drive shareholder value through sustained earnings growth and technological leadership.
With 490,000 shares reported in its 13F holding, David Tepper holds a stake of approximately $287 million in Meta Platforms, Inc. (NASDAQ:META), making it one of his top 10 stock picks.
Amid Meta’s financial successes, the company faced public controversy and scrutiny following testimony from former executive Sarah Wynn-Williams before the Senate Judiciary Committee. Wynn-Williams, who served as Facebook’s Director of Global Public Policy from 2011 to 2017, accused the company of compromising U.S. national security by allegedly briefing the Chinese government on American artificial intelligence initiatives to advance its business interests in China. She claimed that Meta Platforms, Inc. (NASDAQ:META) executives misled employees, shareholders, Congress, and the public regarding their dealings with China. Her book, Careless People, detailing these experiences, sold 60,000 copies in its first week and reached the top 10 on Amazon’s bestseller list. In response, Meta strongly denied the allegations, calling her testimony “divorced from reality and riddled with false claims,”.
Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on an investment, accounting for the timing and magnitude of cash flows over the holding period.
For META, our 22% IRR aligns closely with the company’s compounded growth in earnings per share (EPS) and free cash flow per share during the 6 years holding period.
Looking ahead, Meta is expected to grow its revenues, earnings, and free cash flow per share at mid-teens rates over the next two years. There’s a good possibility that it could exceed these estimates, considering the breadth of growth initiatives currently in place, such as advancements in Al, monetization of Reels, expansion into business messaging, and the ongoing development of the metaverse…” (Click here to read the full text)
7. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders as of Q4: 234
Appaloosa Management’s Equity Stake: $358.40 Million
While Alphabet Inc. (NASDAQ:GOOGL)’s primary revenue driver continues to be through advertising on its platforms, such as Google Search, the rapid growth of Google Cloud has positioned it as a critical contributor to Alphabet’s overall performance. In the fourth quarter of 2024, Google Cloud posted a 30% year-over-year increase in revenue, reaching $12 billion. This strong performance contributed to Alphabet’s overall fourth-quarter earnings, with total revenue climbing 12% year-over-year to $96.5 billion, and earnings per share (EPS) surging by 31% to $2.15, surpassing Wall Street expectations.
Financial projections for Alphabet remain robust; for the upcoming quarter, analysts project earnings per share of $2.04, a 7.94% increase from the same period last year, and revenue of $75.67 billion, representing an 11.94% year-over-year growth. For the full fiscal year, Alphabet Inc. (NASDAQ:GOOGL) is expected to generate $334.55 billion in revenue and $8.89 billion in earnings per share, reflecting steady, AI-driven growth coupled with ongoing infrastructure investments.
Despite these promising developments, Alphabet Inc. (NASDAQ:GOOGL) faced a setback in April 2025, when its stock fell more than 2% in early trading on April 16, following news of a major class action lawsuit filed in the United Kingdom. The approximately $6.6 billion claim, brought on behalf of British businesses, alleged that Google exploited its near-total control over the search advertising market to inflate ad prices by restricting competition. The legal action claimed that Google paid Apple to maintain its position as the default search engine on Safari and secured agreements with Android phone manufacturers to pre-install Google Search and Chrome, effectively shutting out rivals.
As a result, U.K. businesses were left with “almost no choice” but to depend on Google’s services, asserting that the company “overcharged” advertisers through anti-competitive practices. This legal challenge adds to the mounting global regulatory scrutiny that Alphabet Inc. (NASDAQ:GOOGL) faces, following similar antitrust investigations and lawsuits in both the United States and the European Union.
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q4 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) (parent company Alphabet) generated strong double-digit returns during the quarter, as the company’s tremendous innovation in AI, along with strength in its core business of search and advertising and a healthy focus on profit growth and shareholder friendly capital allocation, shifted investor focus away from ongoing litigation with the Department of Justice related to market dominance. In the month of December alone, Google released to the public Gemini 2.0, its most capable AI model yet, as well as new generative image and vision models. And if that was not enough, Google also announced progress in quantum computing. Once considered an AI laggard, the flurry of product announcements and AI development did not go unnoticed by the market and the stock reacted accordingly.”
6. JD.com, Inc. (NASDAQ:JD)
Number of Hedge Fund Holders as of Q4: 78
Appaloosa Management’s Equity Stake: $362.85 Million
JD.com, Inc. (NASDAQ:JD) is a Beijing-based Chinese e-commerce giant and the country’s largest retailer by revenue. Renowned for its technology-driven business model, JD.com has built a diverse portfolio extending beyond traditional e-commerce into sectors such as logistics, healthcare, and property development. The company has consistently reinforced its market position through innovation and expansion into high-growth areas that complement its core retail operations.
On March 6, 2025, JD.com, Inc. (NASDAQ:JD) announced its financial results for the fourth quarter and the full year ended December 31, 2024, showcasing notable year-over-year growth. Net revenues for the fourth quarter of 2024 reached RMB347.0 billion (US$147.5 billion), marking a 13.4% increase from the same period in 2023. For the full year, net revenues totaled RMB1,158.8 billion (US$158.8 billion), reflecting a 6.8% rise compared to the prior year. The company’s profitability also saw significant improvements. Income from operations surged to RMB8.5 billion (US$1.2 billion) in the fourth quarter, a substantial increase from RMB2.0 billion in Q4 2023, with the operating margin improving from 0.7% to 2.4% over the same period. On a non-GAAP basis, income from operations rose to RMB10.5 billion (US$1.4 billion), with a corresponding non-GAAP operating margin of 3.0%, up from 2.5% in the previous year.
For the entire year of 2024, JD.com, Inc. (NASDAQ:JD) reported income from operations of RMB38.7 billion (US$5.3 billion), a marked improvement from RMB26.0 billion in 2023, with its operating margin climbing to 3.3% from 2.4%. Additionally, the company’s net income attributable to ordinary shareholders was RMB9.9 billion (US$1.4 billion) for the fourth quarter, almost tripling from RMB3.4 billion in the same period of the prior year.
As a further demonstration of its strong financial performance and commitment to returning value to shareholders JD.com, Inc. (NASDAQ:JD)’s board of directors approved an annual cash dividend of US$0.5 per ordinary share, or US$1.0 per American Depositary Share (ADS), for the fiscal year ended December 31, 2024, which is scheduled to be paid on or around April 23, 2025, for ordinary shares and April 29, 2025, for ADS holders, with all payments made in U.S. dollars.
Ariel Global Fund stated the following regarding JD.com, Inc. (NASDAQ:JD) in its Q4 2024 investor letter:
“China-based E-commerce company, JD.com, Inc. (NASDAQ:JD) also detracted from performance over the quarter. The stock came under pressure as some investors took profits on solid earnings performance, while others became concerned with the implications tariffs could have on the Chinese economy. In our view, this share price action runs counter to the company’s solid business fundamentals. The home appliance trade-in program and popular shopping event, Singles’ Day, generated significant consumer spending across various product categories. Additionally, the company’s strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams continues to aid the top- and bottom-lines. Despite the near-term noise, we continue to view the company’s strategic positioning favorably and like JD.com’s long-term growth prospects.”
5. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders as of Q4: 120
Appaloosa Management’s Equity Stake: $372.25 Million
Vistra Corp. (NYSE:VST), a leading integrated retail electricity and power generation company, delivered a strong financial and operational performance for 2024, driven by its diverse portfolio that spans natural gas, nuclear, coal, solar, and battery storage facilities. Following its series of acquisitions in 2024, Vistra now stands as the second-largest competitive nuclear operator in the United States. For the quarter ending December 2024, the company reported a net income of $490 million. Over the full year, the company generated $4.56 billion in cash flow from operations, with net income from ongoing operations reaching $2.93 billion. Its ongoing operations adjusted EBITDA totaled $5.66 billion, surpassing the midpoint of its initial guidance by $856 million.
Reaffirming its financial strength and growth outlook, Vistra Corp. (NYSE:VST) provided 2025 guidance projecting ongoing operations adjusted EBITDA between $5.5 billion and $6.1 billion, with adjusted free cash flow before growth expected to range from $3.0 billion to $3.6 billion. The company reported securing hedging coverage for nearly all of its anticipated generation volumes for 2025 and about 80% for 2026, demonstrating a disciplined risk management approach.
Meanwhile, Vistra Corp. (NYSE:VST) made headlines earlier this month by officially withdrawing a 2020 proposal to redevelop part of the retired Morro Bay Power Plant at 1290 Embarcadero into a large-scale battery energy storage system. The initial proposal, which would have transformed a 22-acre portion of the site into a battery storage facility capable of powering about 450,000 homes, was expected to generate an estimated $4.8 million in annual property tax payments for San Luis Obispo County if fully funded. However, in March 2025, the City of Morro Bay formally requested a transfer of the property into city ownership. In response, Vistra declined the request in its April letter and withdrew its development application, asking the city to halt further processing of the proposal. While the future of the Morro Bay site remains uncertain, Vistra reaffirmed its commitment to exploring opportunities that align with its corporate objective.
Carillon Eagle Mid Cap Growth Fund stated the following regarding Vistra Corp. (NYSE:VST) in its Q3 2024 investor letter:
“Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company. As an independent power producer (IPP), Vistra primarily generates revenue from selling its generated power at the prevailing market price. As a result of recent growth in future power demand, the company’s shares have soared on investors’ expectations for future power prices. The potential for Vistra to announce future power purchase agreements (PPAs) with large technology companies in order to satisfy the extraordinary power requirements of these companies’ artificial intelligence (AI) endeavors, in a similar manner to some of Vistra’s closest IPP peers, has also provided a tailwind for the stock.”
4. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders as of Q4: 317
Appaloosa Management’s Equity Stake: $408.86 Million
Microsoft Corporation (NASDAQ:MSFT) continues to demonstrate strategic leadership in cloud computing, artificial intelligence, and next-generation technologies, underscoring its resilience and adaptability within an evolving tech landscape. In its most recent quarterly results, the company reported a 12.27% year-over-year increase in revenue, reaching $69.63 billion, with earnings per share exceeding market expectations at $3.23. This performance was largely driven by the strength of its cloud segment, which accounted for approximately 43% of total revenue in fiscal year 2024.
Microsoft Corporation (NASDAQ:MSFT) announced the upcoming shutdown of Skype, its pioneering video-and-voice calling service, scheduled for May 5. Though apps like WhatsApp and FaceTime have overtaken Skype in popularity for free audio and video calls, Skype has continued to serve as a valuable and affordable tool for international mobile and landline communication. Users have been able to prepay for calling minutes stored in their accounts, while chat messages and Skype-to-Skype video calls remained free. In preparation for the shutdown, Microsoft clarified that it would not refund the remaining Skype account balances, which has given users cause for concern.
Amit Fulay, Vice President of Product for Skype and Teams, noted that transferring funds from Skype accounts to other Microsoft services, such as Office subscriptions, would not be possible. Fulay reasoned that since basic call services would remain available for Skype customers transitioning to Teams, refunds were unnecessary. Microsoft Corporation (NASDAQ:MSFT) has not disclosed how much unspent credit remains across Skype accounts globally, leaving some users uncertain about how they might fully utilize their balances before the shutdown. This transition marks another step in Microsoft’s broader effort to streamline its communication platforms and align them with its enterprise-focused Teams service.
As of Q4 2024, Appaloosa Management held 970,000 shares of Microsoft Corporation (NASDAQ:MSFT) in its portfolio, valued at over $408 million and making it one of Billionaire David Tepper’s top 10 stock picks.
3. PDD Holdings Inc. (NASDAQ:PDD)
Number of Hedge Fund Holders as of Q4: 85
Appaloosa Management’s Equity Stake: $519.49 Million
PDD Holdings Inc. (NASDAQ:PDD), the parent company of Pinduoduo and Temu, delivered a mixed yet robust set of results for the fourth quarter of 2024. The company reported earnings per share of RMB 20.15, topping the consensus estimate of RMB 19.84, but revenue of RMB 110.6 billion fell short of the expected RMB 115.15 billion, prompting a 3.44% decline in premarket trading. Management emphasized that this shortfall reflects its deliberate prioritization of long‑term growth over short‑term financial targets. To that end, PDD continues to deepen its merchant ecosystem by expanding logistics support in remote regions, investing in supply‑chain infrastructure, and raising product quality standards to bolster customer satisfaction and retention.
For the full year 2024, PDD Holdings Inc. (NASDAQ:PDD) posted remarkable top‑line growth, with revenue climbing 59% year‑over‑year to RMB 393.8 billion. The company achieved a 24.06% gross profit margin and ended the year with cash and equivalents of RMB 331.6 billion, underscoring its strong balance sheet. Fourth‐quarter operating profit reached RMB 28 billion, maintaining a 24% margin, and full‐year non‑GAAP net income was RMB 122.3 billion. These results reflect PDD’s ability to leverage scale, technology, and an increasingly diversified merchant base to drive sustainable profitability even as it invests aggressively in future growth initiatives.
As Appaloosa Management held a stake of over $519 million in PDD Holdings Inc. (NASDAQ:PDD), it stands third in Billionaire David Tepper’s top 10 stock picks.
Looking ahead, PDD Holdings Inc. (NASDAQ:PDD) aims to capitalize on its financial strength and expansive user base to accelerate international expansion, particularly through its Temu platform, while continuing to enhance service quality and logistics efficiency at home. The company plans to deploy advanced data analytics and AI tools to optimize inventory management and personalize the shopping experience, further differentiating its offerings in competitive markets. With a clear strategic focus on ecosystem development, merchant empowerment, and technological innovation, PDD Holdings is well-positioned to navigate the evolving global e‑commerce landscape and sustain its leadership in the years to come.
GreenWood Investors stated the following regarding PDD Holdings Inc. (NASDAQ:PDD) in its Q4 2024 investor letter:
“Aside from transitory foreign exchange translation losses (as opposed to trading losses), the two other notable detractors from our portfolio were MEI Pharma and PDD Holdings Inc. (NASDAQ:PDD) in 2024.
PDD Holdings founder Colin Huang is who inspired us to “run 3x faster,” as the relentless corporate culture of PDD has built an e-commerce company with roughly the same GMV (gross merchandise value) of Amazon in one-third the time it took Amazon to build itself. Shares reacted negatively when the company decided to reinvest its record margins into even faster growth and creating a healthier supplier ecosystem. As it looks set to create a second Amazon with its international site Temu, we are highly attracted to the opportunity. Sales are growing 4x faster than Amazon’s, yet shares are priced at less than a quarter of the Amazon earnings multiple.
PDD is a perfect example of why we want to look outside of the “Big Ten” companies that are nearly a third of global market indices. We would not want to compete with the demanding corporate culture of PDD and Temu. Its operating model is relentless at identifying efficiency throughout the manufacturing and selling supply chain. Not only is it a mor formidable competitor than Amazon, and growing much faster, but the valuation is 4x more attractive than Amazon’s…” (Click here to read the full text)
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders as of Q4: 339
Appaloosa Management’s Equity Stake: $570.41 Million
Amazon.com, Inc. (NASDAQ:AMZN) reported robust financial performance for the fourth quarter of 2024, with total revenue increasing by 11% year-over-year, bringing the company’s annual revenue to an impressive $638 billion. Net income experienced particularly significant growth, surging 90% to $5.53 per diluted share compared to the previous year.
Investor confidence in Amazon.com, Inc. (NASDAQ:AMZN) remains strong; by the end of Q4 2024, Appaloosa Management held 2.6 million shares of Amazon, valued at over $570 million. Hedge fund positions in the company grew notably too, with 339 of the 1,009 funds tracked by Insider Monkey reporting stakes in the company, up from 286 in the previous quarter. The collective value of these holdings reached nearly $69.04 billion, signaling a firm belief in Amazon’s long-term growth potential, particularly in AI-powered innovation and its expansive logistics operations.
Amid these operational and financial developments, Amazon.com, Inc. (NASDAQ:AMZN) has also had to navigate the effects of shifting global trade policies. CEO Andy Jassy addressed the ongoing impact of tariffs imposed by President Donald Trump’s administration, acknowledging that many of Amazon’s third-party sellers, who now account for around 60% of all products sold on the platform, are particularly vulnerable to rising costs, especially as a significant portion of them either operate from or source products in China. Jassy noted in a CNBC interview that sellers would likely attempt to pass additional tariff-related costs onto consumers, as most businesses lack the margin flexibility to absorb such increases themselves.
In response to the tariffs, Amazon.com, Inc. (NASDAQ:AMZN) took proactive measures, including “strategic forward inventory buys” and renegotiating terms on certain purchase orders to help stabilize pricing. Nonetheless, the company began canceling some direct import orders from Chinese vendors, particularly in categories like home goods and kitchen accessories, following the tariff announcement. Consultants revealed that several suppliers had products ready for pickup at shipping ports, only to have their orders abruptly canceled through Amazon’s internal Vendor Central system, underscoring the immediate operational consequences of these geopolitical shifts on Amazon’s global supply chain.
1. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders as of Q4: 107
Appaloosa Management’s Equity Stake: $1 Billion
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology conglomerate whose operations span e‑commerce, cloud computing, logistics, and digital services. Its core marketplaces, Taobao and Tmall, connect merchants, brands, and consumers across China and abroad. At the same time, Alibaba Cloud underpins its infrastructure offerings, Cainiao Network handles logistics and supply‑chain solutions, and Ele.me delivers food services, all of which together form a comprehensive ecosystem that supports the company’s merchants and end users.
For the quarter ended December 31, 2024, Alibaba Group Holding Limited (NYSE:BABA) delivered an 8% year‑over‑year revenue increase to RMB 280.15 billion ($38.38 billion). Operating income soared 83% to RMB 41.2 billion ($5.65 billion), due in part to reduced impairment of intangible assets and a 4% rise in adjusted EBITA to RMB 54.85 billion ($7.52 billion). Net income attributable to shareholders climbed an impressive 333% to RMB 48.95 billion ($6.71 billion), buoyed by strong operational performance and mark‑to‑market gains on equity investments. Earnings per ADS reached RMB 20.39 ($2.79), and non‑GAAP diluted EPS grew 13% to RMB 21.39 ($2.93). Alibaba Cloud also returned to double‑digit growth, with revenue up 13% year‑over‑year, driven by rapid expansion in AI‑related services.
Looking forward, Alibaba Group Holding Limited (NYSE:BABA) has committed at least RMB 380 billion ($52.4 billion) over the next three years to build out its AI and cloud infrastructure. Eddie Wu, CEO of Alibaba Group, outlined plans to invest heavily in foundational model platforms, AI‑native applications, and the AI transformation of existing businesses.
Founder Jack Ma, speaking at Alibaba Cloud’s fiscal‑year kickoff earlier in April, emphasized that AI should empower rather than replace humanity: “We are not trying to make machines like humans, but rather to enable machines to understand humans, think like humans, and do things that humans cannot do.” Reflecting on Alibaba Group Holding Limited (NYSE:BABA)’s 25‑year history, Ma reiterated the company’s mission to fill technological gaps—building payment services when none existed, investing in logistics, creating cloud infrastructure, and establishing credit systems—all to ensure that technology serves every ordinary person and drives sustainable, human‑centered innovation.
Overall, BABA ranks first among Billionaire David Tepper’s top 10 stock picks. While we acknowledge the potential of these stock picks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BABA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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