In this article, we discuss the 5 companies Bezos is investing in. If you want to read our detailed analysis of Jeff Bezos’ investment strategies, go directly and see Jeff Bezos Stock Portfolio: 10 Companies Bezos Is Investing In.
5. Nautilus Biotechnology, Inc. (NASDAQ:NAUT)
Number of Hedge Fund Holders: 20
Nautilus Biotechnology, Inc. (NASDAQ:NAUT) stands fifth on our list of the companies Bezos is investing in. It is an American biotechnology company that seeks to revolutionize the process of drug development.
In Q2 2021, Amazon announced a $15 million stake in Nautilus Biotechnology, Inc. (NASDAQ:NAUT). The investment was made through Bezos Expeditions. At the end of Q2, the company had $388 million in cash and cash equivalents. This July, Jefferies initiated its coverage on Nautilus Biotechnology, Inc. (NASDAQ:NAUT) with a ‘Buy’ rating and a $13 price target. The firm’s analyst appreciated the company’s effort in developing a single-molecule platform that would be able to analyze over 95% of the human proteome.
Perceptive Advisors is the company’s largest shareholder, with roughly 9 million shares. As of Q2 2021, 21 hedge funds tracked by Insider Monkey reported owning stakes in Nautilus Biotechnology, Inc. (NASDAQ:NAUT), valued at $185 million. The number of hedge funds having stakes in the company stood at 18 in the previous quarter.
4. Domo, Inc. (NASDAQ:DOMO)
Number of Hedge Fund Holders: 25
Bezos made a solid investment of $60 million in Domo, Inc. (NASDAQ:DOMO), an American cloud software company, in 2013. The company launched its IPO in 2018, raising $193 million. It ranks fourth on our list of the companies Bezos is investing in.
In Q2 2021, Domo, Inc. (NASDAQ:DOMO) posted an EPS of $0.30, beating the analysts’ estimates by $0.06. David Atterbury’s Whetstone Capital Advisors is the company’s largest shareholder at the end of Q2 2021, with shares valued at $61.8 million. Overall, 25 hedge funds reported owning stakes in Domo, Inc. (NASDAQ:DOMO) in the second quarter, down from 27 in the previous quarter. These stakes are valued at $345.1 million.
3. Airbnb, Inc. (NASDAQ:ABNB)
Number of Hedge Fund Holders: 58
Airbnb, Inc. (NASDAQ:ABNB) is an American vocational rental company, operating as an online marketplace for lodging, tourism activities, and vacation rentals. Bezos Expeditions invested $112 million in the company in 2011.
Worm Capital LLC mentioned Airbnb, Inc. (NASDAQ:ABNB) in its Q2 2021 investor letter. Here is what the firm has to say:
“Throughout the quarter, you may have noticed that we averaged into a significant position in Airbnb (ABNB). Though the stock has been a relative underperformer since its February highs, we are highly confident about the company’s prospects and its ability to generate meaningful compounded returns over time.
Some history: We have been following Airbnb’s journey for several years, long before the company went public earlier this year. (In fact, nine years ago, in November 2012, Eric profiled the company for Inc.: “Airbnb Is Changing Travel.”)
Whenever we underwrite a new investment, we look for a few key attributes that help us determine the potential long-term value of a business, as well as its risks. In particular, we focus on management (Are they founders? Do they have skin the game? Are they playing the long game?), addressable market size (How big is the opportunity?), its relative growth and creativity to expand (Are they constantly innovating to make the product better for their customers?), margin expansion (Where can we find operating leverage in the model?), its status in the industry (Are they the dominant player? Can they
take market share from incumbents?), business risks (What are we missing? Are customers dissatisfied? What do employees say?) and probably a dozen more elements that are critical to our process. It’s only then do we take out the pencils do the valuation work.
In short, ABNB fulfills pretty much every element of a business model we’re attracted to: First, it’s highly scalable marketplace-based business model that unites buyer and seller with observable flywheel effects. (This is an important observation, in that the platform creates significant economic value for millions of hosts who rely on Airbnb, which in turn attracts new hosts who identify the opportunity, which creates more inventory, which turn attracts more travelers, which attracts more hosts, and soon.) Second, it has a global focus with significant opportunities to expand its operating leverage; Third,
its management—which is still founder-led—stands out to us as long-term thinkers capable of handling crisis, which the team demonstrated throughout the pandemic by dropping operating costs and turning the business into a more efficient, lean organization. (Like Churchill said: “Never let a good crisis go to waste.”)..”
2. Twitter, Inc. (NYSE:TWTR)
Number of Hedge Fund Holders: 89
Twitter, Inc. (NYSE:TWTR), a microblogging and social networking service, ranks second on our list of the companies Bezos is investing in.
Bezos Expeditions made a $15 million worth of investment in Twitter, Inc. (NYSE:TWTR) in 2008 when the company was not publicly listed.
As of Q2 2021, 89 hedge funds tracked by Insider Monkey are reported to have positions in Twitter, Inc. (NYSE:TWTR), down from 108 in the previous quarter. These stakes are worth over $6.03 billion. The stock gained 30.7% in the past year.
ClearBridge Investments mentioned Twitter, Inc. (NYSE:TWTR) in its recently-published Q2 2021 investor letter. Here is what the firm has to say:
“Not every portfolio company will neatly fit into one of these four growth segments and some may move from one to another over time. Social media platform Twitter could be considered an improving growth story due to the initiatives put in place to grow and better monetize its user base. With the global return of live events and sports causing a rebound in advertising, combined with other new services beginning to thrive, this is a company with the fundamentals to be categorized as a disruptor.”
1. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 135
Bezos invested in Uber Technologies, Inc. (NYSE:UBER) back in 2011 when the company operated only about 7,000 cars and generated $1.8 million in net revenue.
This September, Doug Anmuth of JPMorgan raised the firm’s price target on Uber Technologies, Inc. (NYSE:UBER) to $72, with an ‘Overweight’ rating on the shares. Anmuth lauded the company for exhibiting a stronger execution and noted that it is well-positioned to benefit as the supply trends continue to improve.
Altimeter Capital Management is the company’s largest shareholder at the end of Q2 2021, with shares valued at over $1.2 billion. Overall, 135 hedge funds tracked by Insider Monkey were bullish on Uber Technologies, Inc. (NYSE:UBER) in Q2, valued at $10.4 billion. This shows that hedge fund sentiment is positive for the ride-hailing company as 130 hedge funds had stakes in the company in Q1.
ClearBridge Investments mentioned Uber Technologies, Inc. (NYSE:UBER) in its Q2 2021 investor letter. Here is what the firm has to say:
“The pandemic has also brought attention to the question of gig worker employment status for companies, including ClearBridge holdings Uber and Lyft. In the U.K., Uber proactively classified its drivers as “workers” ahead of final rulings from the British court system. The worker status in the U.K. is a designation between self-employed and employed status that entitles drivers to minimum wage, holiday pay and in some cases a pension.
ClearBridge has engaged with Uber on labor issues since its IPO, and we have given feedback over that time to the CEO, CFO, Chief Legal Officer and Investor Relations on labor relations as well as strategy and communications. Uber’s agreement on this designation is ahead of other competitors in the market and the legal mandate represents a step forward in the company’s thinking about labor. The agreement represents a short-term hit to earnings, yet in some ways it places Uber ahead of the market in its ability to balance labor and shareholder interests. Workers benefit from improved conditions, with new contributions amounting to roughly 3% of a driver’s earnings, while Uber establishes more certainty on costs and visibility into its regulatory environment and operation conditions in the future.”
You can also take a look at Top Stocks to Invest In According to Jeffrey Ubben’s ValueAct Capital and 11 Stocks to Buy Now According to Jeffrey Gendell’s Tontine Asset Management
