In this article, we will discuss the 5 stocks being bought by billionaire Tom Sandell. If you want to read our detailed analysis of these stocks, you can go directly to Billionaire Tom Sandell is Buying These 10 Stocks.
5. Meta Platforms, Inc. (NASDAQ:FB)
Sandell Asset Management’s Stake Value: $8,541,000
Percentage of Sandell Asset Management’s 13F Portfolio: 4.78%
Tom Sandell held 32,610 shares in Meta Platforms, Inc. (NASDAQ:FB) at the end of Q3 2021. The total value of the stake is $8.54 million.
Jefferies Group mentioned Meta Platforms, Inc. (NASDAQ:FB) in its Q3 2021 investor letter. Here’s what the investment management firm said:
“While still early, FB is in the process of building the platforms that will ultimately support the development the Metaverse. We look at FB’s position through the lens of 4 current investment initiatives: 1) Oculus VR hardware, 2) Smart glasses, 3) Augmented Reality lenses, and 4) “Horizon Workrooms”
Oculus Virtual Reality hardware: Since acquiring Oculus in 2014 ($2B deal), FB has been focused on developing best-in-class hardware and complementary software & services to support VR experiences. The Oculus Quest 2 is FB’s newest VR headset; it retails at $299 and allows users to play games, try fitness classes, play sports, and watch concerts in virtual environments. Most importantly, Quest 2 is linked to users’ Facebook accounts, which means users can seamlessly connect with friends in virtual environments to play games or spend time together. We believe one of FB’s biggest differentiators in VR is its large array of non-gaming experiences that were designed for Oculus. For instance, users can explore extreme terrain in National Geographic Explore VR, join virtual fitness classes, or simulate being a chef. As FB’s hardware continues to improve and becomes less cumbersome, we would expect a flywheel of greater developer and user adoption of VR…” (Click here to see the full text)
4. Microsoft Corporation (NASDAQ:MSFT)
Sandell Asset Management’s Stake Value: $13,102,000
Percentage of Sandell Asset Management’s 13F Portfolio: 7.33%
Microsoft Corporation (NASDAQ:MSFT) is a Richmond, Washington-based tech giant that designs, produces, and sells computer software, consumer electronics like smartphones and gaming consoles, personal computers, and related services. Microsoft Corporation (NASDAQ:MSFT) is also home to professional networking site LinkedIn and video and instant messaging software Skype.
In a note issued to investors on November 16, Phil Winslow at Credit Suisse issued an Outperform rating with a $400 target price on Microsoft Corporation (NASDAQ:MSFT) stock. The analyst anticipates Microsoft Corporation’s (NASDAQ:MSFT) top line to expand by mid-to-high teens for at least the next five years. The top-line growth is expected to translate into more than high-teens to 20% EPS and cash flow per share growth during the same period on the back of margin expansion and fewer outstanding shares.
In its Q3 2021 investor letter, Polen Capital discussed its stance on Microsoft Corporation (NASDAQ:MSFT). Here’s what the fund said:
“After modest Portfolio activity during the second quarter of 2021, activity increased during the third quarter. We would broadly characterize the various trades into two objectives: 1) managing risk, and 2) managing valuation. In both cases, we aimed to maintain the Portfolio’s growth profile. In aggregate, we believe we were able to increase expected earnings growth while reducing risk and the overall portfolio valuation… We also trimmed Microsoft, which had grown to nearly 10% of the Portfolio. At an 8% weighting, it still represents one of our largest positions.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
Sandell Asset Management’s Stake Value: 15,001,000
Percentage of Sandell Asset Management’s 13F Portfolio: 8.39%
Doug Anmuth at JPMorgan has made the bold claim that Amazon.com, Inc. (NASDAQ:AMZN) will take over Walmart Inc. (NYSE:WMT) to become the largest retailer in the US in 2022 in a note he issued to investors on November 24. The analyst highlights that Amazon.com, Inc. (NASDAQ:AMZN) has doubled its fulfillment centers since the COVID-19 pandemic began in early 2020, and now the company does not have constraints related to space. The analyst anticipates the holiday sales in the US to increase by more than 14.5% from 2020. In 2020, holiday sales grew by 32% on a YoY basis as the COVID-19 pandemic eased and the US government reinvigorated the economy by giving out stimulus cheques to its citizens.
Of the 867 hedge funds in Insider Monkey’s database, 242 held a stake in Amazon.com, Inc. (NASDAQ:AMZN) at the end of Q3 2021. Davis Funds shared its stance on Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter. Here’s what the investment management firm said:
“E-commerce, online search and advertising, social media and software are another component of the portfolio that have proven, attractive businesses. The online portion of the Fund is currently dominated by such market leaders as Amazon.com. We are attracted to these names based on the size and rapid expansion of their market opportunities globally, their ability to generate and grow new revenue sources through constant innovation, ample operating leverage as they continue to scale and capable, focused, highly competitive leadership teams. If purchased at sensible prices, these types of businesses in our experience can contribute meaningfully to long-term results.”
2. Apple Inc. (NASDAQ:AAPL)
Sandell Asset Management’s Stake Value: $15,420,000
Percentage of Sandell Asset Management’s 13F Portfolio: 15.42%
Apple Inc. (NASDAQ:AAPL) is one of the world’s leading publicly listed companies. The Cupertino, California-based company is the designer, manufacturer of various consumer electronics devices like smartphones (iPhone), personal computers (Mac and iMac), tablets (iPad), wearables (AirPods and Apple Watch), accessories (Beats product), and related services (Apple TV) across the world. The corporation is planning to launch its virtual and augmented reality headset and introduce a self-driving car by 2025.
In a research note issued on November 28, Daniel Ives at Wedbush anticipates Apple Inc. (NASDAQ:AAPL) to sell more than 10 million iPhones over Black Friday and nearly 40 million iPhones during the festive period of Black Friday, Christmas, and New Year. If Apple Inc. (NASDAQ:AAPL) meets this forecast, it will break records for all previous holiday sales for the company. The analyst kept an Outperform rating with a target price of $185 on Apple Inc. (NASDAQ:AAPL).
At the end of Q3 2021, Sandell Asset Management held 133,148 shares in Apple Inc. (NASDAQ:AAPL), worth $15.42 million.
1. Danaher Corporation (NYSE:DHR)
Sandell Asset Management’s Stake Value: $39,836,000
Percentage of Sandell Asset Management’s 13F Portfolio: 22.29%
Danaher Corporation (NYSE:DHR) is a developer, manufacturer, and seller of commercial, industrial, and medical products and services through its three business segments, namely Diagnostics, Environmental and Applied Sciences, and Life Sciences.
Danaher Corporation (NYSE:DHR) reported its Q3 2021 results before the opening bell on October 21. The Washington-based company reported strong results beating top-line and bottom-line estimates for the quarter. The company reported revenues of $7.23 billion, increasing by 23% from the same quarter last year and outperforming the analysts’ estimate of $7 billion. Meanwhile, the adjusted EPS came in at $2.39, beating the consensus estimate of $2.15. For Q4 2021, Danaher Corporation (NYSE:DHR) anticipates core revenue growth of the low-to-mid-teens percent range.
Danaher Corporation (NYSE:DHR) was mentioned in the Q2 2021 investor letter of investment management firm ClearBridge Investments. Here’s what the firm said:
“Our differentiated positions in the health care sector also made strong contributions as the market began to reward the heavily discounted sector. Danaher, for example, is seeing customer activity approach pre-pandemic levels and is executing well. In addition to improving health through its life sciences (research tools for biopharmaceutical, food and beverage, medical, aerospace and microelectronics industries) and diagnostics (tools for use in labs and critical care settings) businesses, Danaher offers environmental and applied solutions that keep global food and water supplies safe.”
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