Below we look into why Brazilian Billionaire Jorge Paulo Lemann Has Lost Faith in These 5 Tech Stocks. For further background on the Brazilian investor as well as insight into the tech stocks he’s currently bullish on, check out Brazilian Billionaire Jorge Paulo Lemann Loves These 5 Tech Stocks.
5. ZoomInfo Technologies Inc. (NASDAQ:ZI)
Former Value of 3G Capital‘s 13F Position: $6.42 million
Number of Hedge Fund Shareholders (as of March 31): 51
Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Snowflake Inc. (NYSE:SNOW) are some of the favorite tech stocks owned by Brazilian billionaire investor Jorge Paulo Lemann.
On the other hand, ZoomInfo Technologies Inc. (NASDAQ:ZI) kicks off the list of 5 tech stocks that Jorge Paulo Lemann has lost faith in. While the position was by far his smallest as of the end of 2021, he had held it since the second quarter of 2020, so there was ongoing conviction in the stock throughout the pandemic. That now appears to have waned, as he sold off all 100,000 of his fund’s ZI shares. Mizuho cut its price target on ZoomInfo to $60 from $85 back in late January.
ZoomInfo Technologies Inc. (NASDAQ:ZI) recently came under fire in a short report released by Wolfpack Research, which claimed the company’s so-called “proprietary insights” that fuel its contacts database are actually being culled from OxyLeads (now Coresignal) through a pass-through entity that is owned by the ZoomInfo CEO’s college roommate. OxyLeads came under fire for its connection to a data breach involving hundreds of millions of profiles in 2019, which appeared to reveal that the company illegitimately scraped its profile data from LinkedIn.
ZoomInfo disputes the accuracy of the WolfPack Research report. In comments made to Insider Monkey, a company spokesperson stated that less than .01% of the data ZoomInfo collects is obtained through Coresignal, all of which is publicly available employment data that does not include any contact information. The spokesperson added that the vast majority of the company’s data collection efforts are done in-house.
A fund that hasn’t lost faith in ZoomInfo Technologies Inc. (NASDAQ:ZI) is the Baron Global Advantage Fund, which believes the company can become much larger over time. It had this to say about the AI business insights company in its Q1 2022 investor letter:
“ZoomInfo Technologies Inc. operates a cloud-based B2B platform that provides sales, marketing, and HR teams with comprehensive business intelligence, enabling shorter sales cycles and higher win rates. While the stock was down 7% over the course of the first quarter, well-timed purchases turned it into a contributor that added 18bps to absolute returns. The company continues to execute well with another positive quarterly earnings surprise and strong forward bookings, with 2021 revenues growing 57% year-over-year, and with 46% free-cash-flow margins. New products are starting to build momentum, and we believe ZoomInfo can become a much larger company over time as it penetrates its $70 billion total addressable market.”
