In this article, we discuss the 5 tech stocks that billionaire Ray Dalio is selling. If you want to read about some more stocks in the Ray Dalio portfolio, go directly to Billionaire Ray Dalio Is Selling These 10 Tech Stocks.
5. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 61
Analog Devices, Inc. (NASDAQ:ADI) makes and sells semiconductors and is headquartered in Massachusetts. Even though the stock has climbed since the US government approved the CHIPS Act last month, promising billions in government spending on the semiconductor sector, recent reports suggest that Washington has also asked chipmakers in the US to halt the sales of select products to the Chinese and Russians, hurting firms which trade with manufacturing hubs in both countries.
On August 18,Deutsche Bank analyst Ross Seymore maintained a Hold rating on Analog Devices, Inc. (NASDAQ:ADI) stock and raised the price target to $170 from $165, appreciating the earnings beat of the firm in the second quarter.
At the end of the second quarter of 2022, 61 hedge funds in the database of Insider Monkey held stakes worth $4.2 billion in Analog Devices, Inc. (NASDAQ:ADI), compared to 67 the preceding quarter worth $4.8 billion.
4. JD.com, Inc. (NASDAQ:JD)
Number of Hedge Fund Holders: 62
JD.com, Inc. (NASDAQ:JD) owns and operates an ecommerce platform. On August 23, the firm posted earnings for the second fiscal quarter, reporting earnings per share of $0.61, beating market estimates by $0.20. The revenue over the period was $40 billion, up close to 5.4% compared to the revenue over the same period last year and beating estimates by $1.4 billion. The firm also revealed that annual active customer accounts increased by 9.2% to 580 million in the twelve months ended June 30, compared to 531 million in the previous year.
On August 24, Benchmark analyst Fawne Jiang maintained a Buy rating on JD.com, Inc. (NASDAQ:JD) stock and raised the price target to $109 from $106, noting that the drivers for the margin improvement of the firm looked sustainable.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management is a leading shareholder in JD.com, Inc. (NASDAQ:JD), with 30 million shares worth more than $1.9 billion.
In its Q3 2021 investor letter, Argosy Investors, an asset management firm, highlighted a few stocks and JD.com, Inc. (NASDAQ:JD) was one of them. Here is what the fund said:
“We sold JD.com, Inc. (NASDAQ:JD) as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 66
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software solutions. The company has an impressive dividend history stretching back close to a decade. It has paid a consistent dividend to shareholders for the last ten years. Over the past decade, this payout has registered consistent growth as well, in a sector where the median in this regard is just two years. In early September, the firm declared a quarterly dividend of $4.10 per share, in line with previous. The forward yield was 3.34%.
On September 2, Truist analyst William Stein maintained a Buy rating on Broadcom Inc. (NASDAQ:AVGO) stock and lowered the price target to $630 from $658, appreciating the earnings beat and guidance numbers of the firm in the second quarter.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Cantillon Capital Management is a leading shareholder in Broadcom Inc. (NASDAQ:AVGO), with 1 million shares worth more than $500 million.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Broadcom Inc. (NASDAQ:AVGO) was one of them. Here is what the fund said:
“However, ClearBridge portfolio companies are responding by supporting their workforces and showing resilience in adapting and thriving. Semiconductor companies ClearBridge owns and engages with have been successful in advancing vaccinations in their global supply chains. In Malaysia, for example, Broadcom Inc. (NASDAQ:AVGO) has taken part in PIKAS, a public-private partnership vaccination program focusing on the workforce in critical manufacturing sectors. By the summer of 2021 Broadcom Inc. (NASDAQ:AVGO) was able to get over 90% of workers in its Penang factory at least one dose of vaccine, and roughly 73% fully vaccinated. Companies in the program also pay the administration cost for vaccinations including cases where the employee is no longer employed by the company before full immunization of the employee.”
2. Intuit Inc. (NASDAQ:INTU)
Number of Hedge Fund Holders: 75
Intuit Inc. (NASDAQ:INTU) provides financial management and compliance products. On August 23, the firm posted earnings for the fourth fiscal quarter, reporting earnings per share of $1.10, beating market estimates by $0.12. The revenue over the period was $2.4 billion, down close to 5.9% compared to the revenue over the same period last year and beating estimates by $80 million. The firm also revealed that it expected revenue growth of approximately 23% to 25% in the first quarter of 2023.
On September 1, Citi analyst Steven Enders initiated coverage of Intuit Inc. (NASDAQ:INTU) stock with a Buy rating and a price target of $538, noting that the firm remains one of the best execution stories in large-cap software.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in Intuit Inc. (NASDAQ:INTU), with 2.3 million shares worth more than $914 million.
In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Intuit Inc. (NASDAQ:INTU) was one of them. Here is what the fund said:
“At the company-specific level, with 59% of our holdings posting double-digit declines during the quarter, we had no chance to hold up against the Index that was down less than 5%. The good news is that for the most part, this draw-down did not result in a permanent loss of capital and in many cases, we believe fundamentals have remained robust or improved even though stock prices declined. One example is Intuit (NASDAQ:INTU), the leading provider of accounting software, and our second largest detractor in the quarter. The stock lost 25% of its value (or over $45 billion) due to a miss in quarterly revenues, which was driven by a slower start to the tax season, leading the company to miss consensus estimates for consumer revenues by about $190 million. The slower start to the tax season is of course insignificant to the intrinsic value of the business, as everyone knows there are only two certainties in life and one of them is – TAXES! And so, naturally, Intuit reaffirmed its annual projections. Moreover, results in other segments were ahead of expectations. CEO Sasan Goodarzi explained the outperformance during its quarterly conference call by saying:
‘We have a nearly $300 billion addressable market driven by tailwinds that include a shift to virtual solutions, an acceleration to online and omni-channel capabilities, and digital money offerings. This, combined with the team’s excellence and execution is contributing to the strength of our performance.’
More specifically, Intuit is gaining market share in tax filings (“we are on track to gain share overall again this season”), continues expanding its QuickBooks online offering, which was up 35% year-over-year, and is seeing strong synergies from its Credit Karma acquisition, driven by Intuit’s Lightbox technology, which allows better personalization of offerings to customers (for example, it “doubles the average approval rate for members who apply for credit cards on Credit Karma versus outside of Credit Karma”). The bottom line is that our estimates of Intuit’s intrinsic value were up while the stock price was down and therefore our future expected return has increased.”
1. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 106
Alibaba Group Holding Limited (NYSE:BABA) is a diversified technology company. On August 30, news agency Reuters reported that Alibaba was among a host of Chinese firms that would receive audit inspections in the coming months. The reports emerged merely days after US and Chinese authorities agreed upon a preliminary deal that would see a third party gain access to the books of Chinese firms listed on US exchanges. The body in question is the Public Company Accounting Oversight Board.
On August 8, Deutsche Bank analyst Leo Chiang maintained a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) stock and raised the price target to $160 from $155, noting that the present valuation of the firm was defensive.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Alibaba Group Holding Limited (NYSE:BABA), with 14.4 million shares worth more than $1.6 billion.
In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Alibaba Group Holding Limited (NYSE:BABA) was one of them. Here is what the fund said:
“We have eliminated 6 holdings during the first quarter (including) Alibaba Group Holding Limited (NYSE:BABA). We have sold our Alibaba Group Holding Limited (NYSE:BABA) position as the company continues to face competitive challenges and regulatory pressures remain, making it difficult (if not impossible) to appropriately assess the range of outcomes and associated probabilities for the future profitability of the business.”
You can also take a peek at 10 Cheap Dividend Kings with Over 2% Yield and 12 Best Semiconductor Stocks To Invest In Right Now.
