In this article, we discuss Ken Fisher’s 5 top tech stock picks. If you want to read our detailed analysis of Ken Fisher’s hedge fund and his investment philosophy, go directly to read the Ken Fisher Stock Portfolio: 10 Biggest Tech Stocks.
5. salesforce.com, inc. (NYSE:CRM)
Fisher Asset Management’s Stake Value: $3,278,299,000
Percent of Fisher Asset Management’s 13F Portfolio: 2.05%
Number of Hedge Fund Holders: 108
salesforce.com, inc. (NYSE:CRM) is an American technology and software company that focuses on a customer relationship management (CRM) platform, along with offering cloud-based solutions to its consumers. The company stands fifth on our list of Ken Fisher’s top tech stock picks.
In Q2 2021, Fisher Asset Management increased its positions in salesforce.com, inc. (NYSE:CRM) by 4%. The hedge fund now owns over 13.4 million shares in the company, valued at $3.2 billion. The company represents 2.05% of the fund’s 13F portfolio. In September, RBC Capital raised its price target on salesforce.com, inc. (NYSE:CRM) to $325, while maintaining an ‘Outperform’ rating on the shares.
As of Q2 2021, the number of hedge funds tracked by Insider Monkey having stakes in salesforce.com, inc. (NYSE:CRM) grew to 108, from 91 in the previous quarter. The total value of these stakes is over $11.7 billion.
RV Capital Management mentioned salesforce.com, inc. (NYSE:CRM) in its Q2 2021 investor letter. Here is what the firm has to say:
“Part 5: A New Investment in Salesforce.com
The assertion that mega caps can also be mispriced is a good segue to our second new investment in Salesforce.com. Salesforce is one of the largest software companies in the world with a market value of around US$ 250 bn. It is best known for its customer relationship management or “CRM” solution, known as its Sales Cloud. It has three additional clouds (“Service,” “Marketing” and “Commerce”) as well as a thriving platform business with both owned and 3rd party software solutions.
I first came across Salesforce in 2013. I was invested in Bechtle, a German company that provides companies with their in-house IT. I kept hearing about a strange new concept called “the Cloud” and wanted to get up to speed on the topic in case it was a risk to Bechtle. As a result, I picked up a copy of “Behind the Cloud”. It documents how Salesforce.com pioneered cloud-based software and revolutionised the software industry.
Since then, I have followed Salesforce from a distance and visited it several times in San Francisco. I did not consider it seriously as an investment though as for much of the period, I had not yet overcome my aversion to loss-making companies.
This changed in December last year when Salesforce announced the acquisition of Slack (a former investment of the Business Owner Fund, described in my 2020 half-year letter) for US$ 27 bn. On the date of announcement, Salesforce’s market value fell by around US$ 20 bn. Effectively, the market was saying that Slack was almost worthless, which, as an enthusiastic owner of Slack, I disagreed with. Initially, I decided to keep our Slack stock and roll it into Salesforce (as part of the consideration was in Salesforce’s own stock). As Salesforce’s price fell further in the subsequent months, I bought its stock directly to make it a full-size position post the closing of the Slack acquisition…”
4. Adobe Inc. (NASDAQ:ADBE)
Fisher Asset Management’s Stake Value: $3,634,676,000
Percent of Fisher Asset Management’s 13F Portfolio: 2.28%
Number of Hedge Fund Holders: 89
Adobe Inc. (NASDAQ:ADBE) stands fourth on our list of Ken Fisher’s top tech stock picks. It is an American technology and computer software company whose software is used in multiple fields, such as graphic designing, video editing, photography, and web development.
This September, JPMorgan lifted its price target on Adobe Inc. (NASDAQ:ADBE) to $680, while keeping an ‘Overweight’ rating on the shares. The firm’s analyst Sterling Auty appreciated the company’s Q3 earnings beat and sees a positive fundamental outlook. In 2021, Adobe Inc. (NASDAQ:ADBE) delivered an 18.7% return to shareholders.
As of Q2 2021, 89 hedge funds tracked by Insider Monkey have positions in Adobe Inc. (NASDAQ:ADBE), down from 107 in the previous quarter. The total value of these stakes is over $13 billion. Aubrey Capital Management is the company’s leading shareholder, with shares worth $9.07 billion.
Richie Capital Group mentioned Adobe Inc. (NASDAQ:ADBE) in its second-quarter 2021 investor letter. Here is what the firm has to say:
“Adobe Systems (ADBE – up 24.8%) – In the last 15 years, Adobe has transformed itself into a software behemoth, more than tripling its revenue since 2010. The company is famous for its namesake PDF-reader and photo-editing software Photoshop. However, ADBE sells a full suite of software products through a recurring subscription model. The company transitioned from selling boxed software to recurring subscriptions in 2013 and revenues have grown consistently since. The company achieved $13B in revenue in 2020 with 88% Gross Margins.”
3. Alphabet Inc. (NASDAQ:GOOG)
Fisher Asset Management’s Stake Value: $4,346,132,000
Percent of Fisher Asset Management’s 13F Portfolio: 2.72%
Number of Hedge Fund Holders: 155
In Q2 2021, Fisher Asset Management increased its stake in Alphabet Inc. (NASDAQ:GOOG) by 4% and holds over 1.7 million shares in the company, worth $4.3 billion. The company represents 2.72% of the hedge fund’s 13F portfolio. In Q2 2021, Alphabet Inc. (NASDAQ:GOOG) reported revenue of $61.8 billion, showcasing a 61.6% growth from the prior-year quarter. In September, Jefferies lifted its price target on Alphabet Inc. (NASDAQ:GOOG) to $3,325, while maintaining a ‘Buy’ rating on the shares.
Of the 873 hedge funds tracked by Insider Monkey, 155 hedge funds have positions in Alphabet Inc. (NASDAQ:GOOG) in Q2, compared with 159 in the previous quarter. These stakes are valued at over $33.7 billion. With shares worth $76.1 billion, Crake Asset Management is the company’s leading shareholder.
Mawer Investment Management mentioned Alphabet Inc. (NASDAQ:GOOG) in its second-quarter 2021 investor letter. Here is what the firm has to say:
“Many higher growth companies reported strong results amid the pick-up in broad economic activity including Alphabet. These higher growth companies tend to have increased sensitivity to a change in discount rates and were supported as long-term interest rates stabilized over the period.”
2. Microsoft Corporation (NASDAQ:MSFT)
Fisher Asset Management’s Stake Value: $6,721,915,000
Percent of Fisher Asset Management’s 13F Portfolio: 4.22%
Number of Hedge Fund Holders: 238
As of Q2 2021, Fisher Asset Management holds 24.8 million shares in Microsoft Corporation (NASDAQ:MSFT), valued at $6.7 billion. The company accounts for 4.22% of the hedge fund’s 13F portfolio. Recently, Morgan Stanley lifted its price target on Microsoft Corporation (NASDAQ:MSFT) to $331, while keeping an ‘Overweight’ rating on the shares.
Of the 873 hedge funds tracked by Insider Monkey, 238 hedge funds have positions in Microsoft Corporation (NASDAQ:MSFT) in Q2, valued at over $62.4 billion. The number of hedge funds having stakes in the company stood at 251 in the previous quarter.
Baron Opportunity Fund released its second-quarter 2021 investor letter and mentioned Microsoft Corporation (NASDAQ:MSFT) in it. Here is what the firm has to say:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft was a top contributor in the period because it trades at reasonable free cash flow and earnings valuations, has cloud and digital transformation tailwinds at its back, reported a solid March quarter, and beat Street expectations by a wide margin. Microsoft’s results continued to be strong across the board, with Azure cloud computing revenues up 46% in constantcurrency (“cc”) terms and commercial cloud bookings growth of 38% cc, the best in years. Microsoft also reported robust profitability growth, with operating income expanding 31% and GAAP earnings up 45%. We believe the company is well positioned for continued solid growth and profitability through market share gains as more companies look to transform and digitize their businesses as they move operations to the cloud.”
1. Apple Inc. (NASDAQ:AAPL)
Fisher Asset Management’s Stake Value: $8,883,179,000
Percent of Fisher Asset Management’s 13F Portfolio: 5.57%
Number of Hedge Fund Holders: 138
Apple Inc. (NASDAQ:AAPL) tops our list of Ken Fisher’s top tech stock picks. It is an American multinational technology company that manufactures consumer electronics, smart devices, and computer software.
As of Q2 2021, Fisher Asset Management holds approximately 64.9 million shares in Apple Inc. (NASDAQ:AAPL), valued at $8.9 billion. The company represents 5.57% of the hedge fund’s 13F portfolio. In Q2 2021, Apple Inc. (NASDAQ:AAPL) reported revenue of $81.4 billion, up 36.4% from the prior-year quarter. The company’s iPhone sales accounted for $39.57 billion of the gross revenue, versus the estimates of $34.5 billion. In October, Morgan Stanley lifted its price target on Apple Inc. (NASDAQ:AAPL) to $168, while keeping an ‘Overweight’ rating on the shares. In the past year, the stock gained 15.43%.
As of Q2 2021, 138 hedge funds tracked by Insider Monkey have positions in Apple Inc. (NASDAQ:AAPL), up from 127 in the previous quarter. These stakes are valued at $145.5 billion. With over 887 million shares, worth $121.5 billion, Berkshire Hathaway is the company’s leading shareholder.
ClearBridge Investments mentioned Apple Inc. (NASDAQ:AAPL) in its first-quarter 2021 investor letter. Here is what the firm has to say:
“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”
You can also take a look at 10 Best Stocks to Buy According to Billionaire Ken Fisher and 10 Best Defensive Stocks to Buy Today According to Billionaire Ken Fisher
