In this article, we discuss the top 5 stocks of Edmond Safra’s EMS Capital. If you want our detailed analysis of these stocks, go directly to Edmond Safra’s EMS Capital’s Top 10 Stocks.
5. Mastercard Incorporated (NYSE:MA)
EMS Capital’s Stake Value: $83,371,000
Percentage of EMS Capital’s 13F Portfolio: 6.53%
Number of Hedge Fund Holders: 156
Mastercard Incorporated (NYSE:MA) is a multinational financial services mega corporation, which allows transactions via its debit, credit, and prepaid cards. Several banks came together to create Mastercard Incorporated (NYSE:MA) in 1966, to compete with Bank of America Corporation (NYSE:BAC)’s BankAmericard, which is now rebranded as the Visa card owned by Visa Inc. (NYSE:V).
Mastercard Incorporated (NYSE:MA) is a top stock pick of EMS Capital, with the investment firm owning stakes worth $83.3 million in Mastercard Incorporated (NYSE:MA) as of June this year. This represents 6.53% of EMS Capital’s stock portfolio.
The Q3 EPS for Mastercard Incorporated (NYSE:MA) came in at $2.37 on October 28, beating estimates by $0.18. Mastercard Incorporated (NYSE:MA)’s revenue for the third quarter was $4.99 billion, exceeding the estimated revenue by $35.79 million.
Raymond James analyst John Davis on October 29 kept an Outperform rating on Mastercard Incorporated (NYSE:MA), but lowered the price target from $453 to $430. He stated that the Q3 earnings suggested a modest revenue beat, and the outlook for Q4 also suggests moderate growth.
Here is what Polen Capital has to say about Mastercard Incorporated (NYSE:MA) in its Q3 2021 investor letter:
“Mastercard faced pressure as some believe these “old payment infrastructure” businesses will be disrupted by newer fintech companies using blockchain, buy now, pay later (BNPL), or other innovations to provide better/cheaper payment services. However, we believe that some of these technologies have meaningful limitations which could benefit existing payment networks. For example, BNPL transactions are often funded with cards and turn a one-time transaction into many smaller ones with more transaction fees for Mastercard. Just like with regulation, we continually monitor for competition and technological disruption. As of now, we do not see a significant risk in the foreseeable future to this company.”
4. salesforce.com, inc. (NYSE:CRM)
EMS Capital’s Stake Value: $83,760,000
Percentage of EMS Capital’s 13F Portfolio: 6.56%
Number of Hedge Fund Holders: 108
salesforce.com, inc. (NYSE:CRM) is a cloud-based software that enables customer relationship management, application development, data analytics, and marketing automation. salesforce.com, inc. (NYSE:CRM) is a top stock pick of Edmond Safra, who owns 342,900 shares in salesforce.com, inc. (NYSE:CRM) via EMS Capital, worth $83.76 million, representing 6.56% of the firm’s 13F portfolio as of the second quarter.
At the end of June, 108 hedge funds were bullish on salesforce.com, inc. (NYSE:CRM), up from 91 in the preceding quarter.
Deutsche Bank analyst Brad Zelnick on November 1 set a $360 price target on salesforce.com, inc. (NYSE:CRM), and kept a Buy rating on the stock. He believes that salesforce.com, inc. (NYSE:CRM) is underestimated by buyers, and investors seem to neglect its growth potential and the speed at which salesforce.com, inc. (NYSE:CRM) is succeeding currently.
Here is what Polen Capital has to say about salesforce.com, inc. (NYSE:CRM) in its Q3 2021 investor letter:
“Salesforce came under pressure earlier in the year after agreeing to purchase Slack for about $26 billion. Since then, management has articulated well the strategic rationale and integration of Slack into its other software offerings and has demonstrated continued double-digit organic revenue growth within its legacy product offerings. At its recent investor day, the company also outlined long-term growth plans in line with our estimates but probably above what others may have been expecting, especially on margin expansion.”
3. Sea Limited (NYSE:SE)
EMS Capital’s Stake Value: $109,854,000
Percentage of EMS Capital’s 13F Portfolio: 8.60%
Number of Hedge Fund Holders: 104
Sea Limited (NYSE:SE) is a well-known company from Singapore, operating three digital businesses, offering entertainment, financial services, and e-commerce via its platforms, namely Garena, SeaMoney, and Shopee. EMS Capital owns 400,050 shares in Sea Limited (NYSE:SE), amounting to $109.85 million, representing 8.60% of the firm’s Q2 portfolio. Sea Limited (NYSE:SE) is a top stock pick of Edmond Safra’s EMS Capital.
As of the second quarter of 2021, 104 hedge funds tracked by Insider Monkey were long Sea Limited (NYSE:SE), up from 98 in the first quarter.
Jiong Shao from Barclays, on November 2, kept an Overweight rating and a $427 price target on Sea Limited (NYSE:SE). Shao argues that China has a dominant technology sector that is fully backed by the government, and as the second largest economy in the world, Chinese companies cannot be overlooked when it comes to investment decisions. Sea Limited (NYSE:SE) is also the leading e-commerce platform and online game developer in Southeast Asia.
Here is what Tao Value has to say about Sea Limited (NYSE:SE) in its Q2 2021 investor letter:
“Sea continued to execute above expectation. The gaming business continued strong momentum, recording bookings of $1.1 billion, growing 117% y-o-y. The major franchise Free Fire showed no sign of slowing down in the established ASEAN & LatAm market and received positive reception from new markets like the US. On the e-commerce side, Shopee demonstrated early success in expanding to Brazil, by adopting a low-price category & gamification strategy. For 2021, Shopee is now the top downloaded e-commerce app in Brazil, almost 2x of the second-place local leader Mercado Libre (MELI). I also see the most promising development is in its FinTech business – SeaMoney, which more than doubled its revenue in Q1 2021 from the previous quarter! With online lending products rolling out, SeaMoney is poised to grow rapidly, becoming the 3rd growth curve for Sea.”
2. Adecoagro S.A. (NYSE:AGRO)
EMS Capital’s Stake Value: $117,396,000
Percentage of EMS Capital’s 13F Portfolio: 9.20%
Number of Hedge Fund Holders: 14
Adecoagro S.A. (NYSE:AGRO) is an agro industrial company, focusing on manufacturing food and also specializing in renewable energy. The main food products at Adecoagro S.A. (NYSE:AGRO) are sugar, dairy, rice, and crops. The company uses byproducts of sugar to produce bioelectricity and renewable fuel. Adecoagro S.A. (NYSE:AGRO) is a top stock pick of Edmond Safra as of June this year.
EMS Capital owns 11.69 million shares in Adecoagro S.A. (NYSE:AGRO), worth $117.3 million, representing 9.20% of the firm’s investment portfolio for the second quarter.
As of Q2, 14 head funds tracked by Insider Monkey reported owning stakes in Adecoagro S.A. (NYSE:AGRO), worth $338.4 million.
1. Meta Platforms, Inc. (NASDAQ:FB)
EMS Capital’s Stake Value: $198,716,000
Percentage of EMS Capital’s 13F Portfolio: 15.57%
Number of Hedge Fund Holders: 266
Meta Platforms, Inc. (NASDAQ:FB) is the top stock pick of Edmond Safra’s EMS Capital, with the investment firm owning 571,500 shares in Meta Platforms, Inc. (NASDAQ:FB), worth $198.71 million, representing 15.57% of EMS Capital’s Q2 portfolio.
Jerome Pesenti, the vice president of AI at Meta Platforms, Inc. (NASDAQ:FB), on November 2 reported that Meta Platforms, Inc. (NASDAQ:FB) would stop using facial recognition to alert people if they have been tagged in photos.
Meta Platforms, Inc. (NASDAQ:FB) on October 25 reported Q3 earnings. EPS for the quarter came in at $3.22, beating estimates by $0.04. As of 2021, Meta Platforms, Inc. (NASDAQ:FB) has 2.9 billion active monthly users, which represents a 7.18% year-over-year increase.
As of the second quarter, 266 hedge funds monitored by Insider Monkey were long Meta Platforms, Inc. (NASDAQ:FB), up from 257 in the preceding quarter.
Here is what Polen Capital has to say about Meta Platforms, Inc. (NASDAQ:FB) in its Q3 2021 investor letter:
“Facebook’s stock was pressured on concerns about regulation in the quarter. We are constantly monitoring the potential regulatory risks to Facebook (and all of our holdings). At this point, we see very little chance that regulation changes Facebook’s business model in a meaningful and adverse way. Regarding the recent data shared by a former Facebook employee and the company itself on some of the unfortunate negative consequences of social media, we recognize these types of issues will inevitably linger in different forms and fashions well into the future. We have been focused on the ability of Facebook to identify and mitigate these negative consequences while amplifying the value users typically cite for its apps across a long list of use cases. We continuously monitor the vibrance of the user base on Facebook’s apps to confirm that value.”
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