In this article, we discuss the 5 stocks Cathie Wood is dumping. If you want to read our detailed analysis of these stocks, go directly to Cathie Wood is Dumping These 15 Stocks.
5. HubSpot, Inc. (NYSE: HUBS)
Number of Hedge Fund Holders: 54
HubSpot, Inc. (NYSE: HUBS) is placed fifth on our list of 15 stocks that Cathie Wood is dumping. The company is headquartered in Cambridge and provides a cloud-based customer relationship management platform for businesses.
On August 5, investment advisory Truist maintained a Buy rating on HubSpot, Inc. (NYSE: HUBS) stock and raised the price target to $700 from $600, highlighting that the earnings beat of the firm in the second quarter was “impressive”.
Out of the hedge funds being tracked by Insider Monkey, California-based investment firm SCGE Management is a leading shareholder in HubSpot, Inc. (NYSE: HUBS) with 1.4 million shares worth more than $820 million.
In its Q2 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and HubSpot, Inc. (NYSE: HUBS) was one of them. Here is what the fund said:
“HubSpot has its roots in marketing automation software for small and medium-sized businesses, but during our ownership period has steadily expanded its offering to become a broad front-office solution suite across marketing, sales, service, website content management and customer data analytics (and has simultaneously enriched these tools to attract larger customers). The pandemic has prompted companies across the globe to modernize their customer-facing software at a record pace as they increasingly rely on their digital capabilities. HubSpot’s ability to meet this need was on full display in its recent earnings results. New customer additions hit a record pace (+45% YoY), and the company demonstrated both high retention of existing customers and strong progress in driving higher adoption of additional software modules. Furthermore, the company’s sales and marketing spend is getting more efficient, which is driving a steady increase in margins. Given the positive profit cycle momentum, we added to our position at a valuation we consider attractive.”
4. Atlassian Corporation Plc (NASDAQ: TEAM)
Number of Hedge Fund Holders: 64
Atlassian Corporation Plc (NASDAQ: TEAM) is an Australia-based company that markets various kinds of software products. It is ranked fourth on our list of 15 stocks that Cathie Wood is dumping.
On August 30, investment advisory Wolfe Research initiated coverage of Atlassian Corporation Plc (NASDAQ: TEAM) stock with an Outperform rating and a price target of $400. Alex Zukin, an analyst at the firm, issued the ratings update.
At the end of the second quarter of 2021, 64 hedge funds in the database of Insider Monkey held stakes worth $4.1 billion in Atlassian Corporation Plc (NASDAQ: TEAM), down from 67 the preceding quarter worth $3.9 billion.
Here is what Baron Opportunity Fund has to say about Atlassian Corporation Plc (NASDAQ: TEAM) in its Q2 2021 investor letter:
“Atlassian Corporation Plc is a software leader that makes tools that are used by thousands of teams worldwide, thus its ticker TEAM. Atlassian’s tools “help teams collaborate, build, and create together” (quote from Atlassian’s website), with an emphasis on designing, developing, and maintaining software, including JIRA for team planning and project management, Confluence for team content creation and sharing, HipChat for team messaging and communications, Bitbucket for team software code sharing and management, and JIRA Service Desk for team services and support use cases. Atlassian is the recognized market leader for information technology team planning and project management software, and has extended its product offering into tangential areas, such as those listed above. The company is in the midst of transitioning its business model to the cloud, which will help it drive faster product innovation, more seamlessly integrate its product families, and raise the effective price realization for its suite of products. Atlassian is run by its two visionary founders, has strong competitive advantages, and we think it should be able to grow revenue over 25% for many years with best-in-class free cash flow margins.”
3. CrowdStrike Holdings, Inc. (NASDAQ: CRWD)
Number of Hedge Fund Holders: 66
CrowdStrike Holdings, Inc. (NASDAQ: CRWD) is a California-based company that provides endpoint and cloud workload security solutions. It is placed third on our list of 15 stocks that Cathie Wood is dumping.
On September 1, investment advisory BTIG maintained a Buy rating on CrowdStrike Holdings, Inc. (NASDAQ: CRWD) stock and raised the price target to $313 from $302, noting the second quarter results of the firm “cleared every hurdle”.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in CrowdStrike Holdings, Inc. (NASDAQ: CRWD) with 7.5 million shares worth more than $1.8 billion.
In its Q1 2021 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and CrowdStrike Holdings, Inc. (NASDAQ: CRWD) was one of them. Here is what the fund said:
“CrowdStrike provides cloud-based software used in the security of computers, servers, and mobile phones. The stock pulled back a bit during the quarter as investor sentiment shifted away from stocks with higher valuation multiples. We remain shareholders, as the protection of enterprise assets and cloud workloads from various forms of cyberattacks remains more important than ever for many enterprises, and we believe this will continue to result in a strong demand environment for CrowdStrike’s innovative products and services.”
2. Adobe Inc. (NASDAQ: ADBE)
Number of Hedge Fund Holders: 89
Adobe Inc. (NASDAQ: ADBE) is ranked second on our list of 15 stocks that Cathie Wood is dumping. The firm operates as a diversified software company and is headquartered in California.
On September 3, investment advisory Argus maintained a Buy rating on Adobe Inc. (NASDAQ: ADBE) stock and raised the price target to $764 from $650, noting that the stock had “blown through” previous price target.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Adobe Inc. (NASDAQ: ADBE) with 6.2 million shares worth more than $3.6 billion.
Here is what Polen Capital has to say about Adobe Inc. (NASDAQ: ADBE) in its Q1 2021 investor letter:
“Adobe and Autodesk are both prime examples of the rotation that occurred during the quarter. Both are dominant businesses in their respective markets, which are experiencing structural tailwinds. Despite each business’s position of strength, the stocks of cyclicals and businesses with higher leverage and lower profitability were more favored this past quarter. In stark contrast, Adobe and Autodesk both have low leverage, high levels of profitability, high recurring revenues that mitigate cyclicality, and are both capital-light business models—all attributes we appreciate as investors. Adobe and Autodesk were also two of the top three performers within the Portfolio during 2020.”
1. Apple Inc. (NASDAQ: AAPL)
Number of Hedge Fund Holders: 138
Apple Inc. (NASDAQ: AAPL) is placed first on our list of 15 stocks that Cathie Wood is dumping. The firm operates from California as a diversified technology company.
On September 1, investment advisory Bank of America reiterated a Neutral rating on Apple Inc. (NASDAQ: AAPL) stock with a price target of $160. Wamsi Mohan, an analyst at the firm, issued the ratings update.
At the end of the second quarter of 2021, 138 hedge funds in the database of Insider Monkey held stakes worth $145 billion in Apple Inc. (NASDAQ: AAPL), up from 127 in the preceding quarter worth $131 billion.
In its Q1 2021 investor letter, Distillate Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ: AAPL) was one of them. Here is what the fund said:
“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”
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