Mark Cuban Stock Portfolio: 12 Stocks To Consider

Published on December 29, 2023 at 7:57 am by Usman Kabir in Hedge Funds, News

In this article, we discuss the 12 stocks to consider in the stock portfolio of Mark Cuban. If you want to read about some more stocks in the Mark Cuban portfolio, go directly to Mark Cuban Stock Portfolio: 5 Stocks To Consider.

Mark Cuban is known for many things. He is a famous television personality for appearances on a startup funding show called Shark Tank. He is also an angel investor, entrepreneur, and philanthropist. Up until a few weeks ago, Cuban was also the majority owner of basketball team Dallas Mavericks. Over the past few decades, Cuban has earned the respect of the finance world by turning his investments into a multi-billion dollar empire. His first claim to fame was selling video portal Broadcast to Yahoo for $5.7 billion in 1999.

Cuban recently pulled off a similar coup with his basketball team. In the year 2000, just after his first big sale, Cuban bought the Dallas Mavericks for $285 million. Earlier this week, the NBA approved the sale of the company to a Las Vegas casino family for $3.5 billion. Cuban, after selling his majority stake in the team, has pocketed more than $3 billion from the trade. Despite the sale, Cuban maintains a minor ownership stake in the team and also retains the control over basketball operations. He has said the deal will bring in more revenue for the team.

Even though Mark Cuban is more than sixty years old, his investment philosophy closely mirrors that of a new generation of stock traders at the market who are bullish on high growth themes such as artificial intelligence, cryptocurrencies, and technology in general. Cuban is worth more than $6 billion and some of the top stocks to consider in his investment portfolio include e-commerce giant Amazon.com, Inc. (NASDAQ:AMZN), streaming leader Netflix, Inc. (NASDAQ:NFLX), and tech behemoth Alphabet Inc. (NASDAQ:GOOG).

Cuban has been bullish on Amazon.com, Inc. (NASDAQ:AMZN) for many years, backing the shares to go higher on multiple occasions during interviews. In 2019, he disclosed that he owned close to $1 billion worth of Amazon.com, Inc. (NASDAQ:AMZN) stock that he had purchased for a split-adjusted price of $25 to $35 per share. As of December 29, the multinational tech firm trades at over $153 per share. Cuban noted how ecommerce was changing how retailers did business because of Amazon.com, Inc. (NASDAQ:AMZN).

“Obviously, online matters. Ecommerce has had the impact that everybody expected it to. I think traditional retailers, brick-and-mortar retailers, had hoped there would be ways to work around it, and some have found some solutions. But it’s not business as usual anymore, and if you opened up a store 10 years ago when rents were significantly higher and your rents escalate, you’re in trouble. And it is hard to regenerate traffic. Yeah you have an online component but if you have a thousand locations [stores] that is going to dominate your business.”

Cramer also picked up on the artificial intelligence trend at the stock long before other investors, identifying Alphabet Inc. (NASDAQ:GOOG) as one his top picks in the space. In a LinkedIn interview last year, he identified AI as one of the sectors that young investors should target for future growth. In early 2021, via a post on social networking platform X, Cuban said the foundation of his investing strategy was how good a company was at AI, noting Alphabet Inc. (NASDAQ:GOOG) was part of an AI Squad that was the best at it.

The “AI Squad”. The companies that have harnessed AI the best are the companies dominating. To paraphrase a great movie line, “They keep getting smarter while everyone else stays the same “ It’s the foundation of how I invest in stocks these days. “How good is the company at AI”

Our Methodology

It is important to clarify that the stocks listed below were picked from the public comments that Cuban has made on his investments. He has explicitly mentioned some of his private holdings during these public appearances while only alluding to others. However, based on a careful assessment of the comments, the stocks listed below largely align with his investment philosophy. The list is compiled according to the number of hedge funds having stakes in each firm. The hedge fund sentiment around each stock was calculated using the data of 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2023. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

Mark Cuban Stock Portfolio: 12 Stocks To Consider

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Mark Cuban Stock Portfolio: Stocks To Consider

12. GameStop Corp. (NYSE:GME)

Number of Hedge Fund Holders: 9

GameStop Corp. (NYSE:GME) is a specialty retailer that provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe. In February 2021, Mark Cuban answered questions about GameStop Corp. (NYSE:GME) on a Reddit forum, advising users to hold onto GameStop despite a drop in prices, saying that is what he would have done if he owned the stock.

In February last year, Cuban said that WallStreetBets, one of the most influential platforms on Reddit, was changing how the market functioned, advising users on the platform to hold onto GameStop Corp. (NYSE:GME) shares to benefit the firm in the long term.

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in GameStop Corp. (NYSE:GME) with 1.3 million shares worth more than $22 million.

Just like Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX), and Alphabet Inc. (NASDAQ:GOOG), GameStop Corp. (NYSE:GME) is one of the stocks to consider in the portfolio of Mark Cuban.

11. AMC Entertainment Holdings, Inc. (NYSE:AMC)

Number of Hedge Fund Holders: 18

AMC Entertainment Holdings, Inc. (NYSE:AMC) engages in the theatrical exhibition business. In late January 2021, Mark Cuban addressed the short squeeze saga sweeping the finance world, telling news platform CNBC that his son made trades in AMC Entertainment Holdings, Inc. (NYSE:AMC) using information from TikTok, saying he loved how speed and density of information was giving the little guy an edge in trading.

At the end of the third quarter of 2023, 18 hedge funds in the database of Insider Monkey held stakes worth $54 million in AMC Entertainment Holdings, Inc. (NYSE:AMC), compared to 16 in the preceding quarter worth $39 million.

10. BlackBerry Limited (NYSE:BB)

Number of Hedge Fund Holders: 19

BlackBerry Limited (NYSE:BB) provides intelligent security software and services to enterprises and governments worldwide. Mark Cuban admitted in early 2021 that his son was trading in BlackBerry Limited (NYSE:BB) stock after gathering information about the stock market from social media platforms like Reddit, adding that he loved the WallStreetBets forum on Reddit.

Among the hedge funds being tracked by Insider Monkey, Toronto-based firm Fairfax Financial Holdings is a leading shareholder in BlackBerry Limited (NYSE:BB) with 46 million shares worth more than $220 million.

9. Fidelity National Financial, Inc. (NYSE:FNF)

Number of Hedge Fund Holders: 26

Fidelity National Financial, Inc. (NYSE:FNF) provides technology solutions for merchants, banks, and capital markets firms worldwide. During a question answer session with retail traders on WallStreetBets forum in early 2021, Cuban advised large banks to mainstream crypto, like Fidelity Financial had done, noting this would help smoothen crypto prices in the long term.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Brave Warrior Capital is a leading shareholder in Fidelity National Financial, Inc. (NYSE:FNF) with 9.4 million shares worth more than $392 million.

In its Q3 2023 investor letter, Silver Beech Capital, an asset management firm, highlighted a few stocks and Fidelity National Financial, Inc. (NYSE:FNF) was one of them. Here is what the fund said:

“Fidelity National Financial (“FNF”) is the largest title insurance agency in the United States and a leading provider of title-related real estate transaction services. FNF also owns 85% of F&G Annuities, a life insurance and annuity business. Real estate transaction volume is tied to the interest rate cycle; therefore, title insurers are cyclical and often dismissed as bad businesses. FNF’s title profits will likely decline by over 50% in 2023, a cyclical trough, versus profits in 2021, a cyclical peak. Lumpiness in FNF’s title profits is to be expected, yet investors over-extrapolate FNF’s earnings power to the upside and downside. Since 2021, FNF’s stock peaked at ~$50 per share and troughed at ~$32 per share, a greater than 60% dispersion in equity valuation (including share repurchase accounting but excluding spin-offs).

Though volume is cyclical, real estate transactions are a constant feature of the American economy and FNF’s title profits will normalize. FNF earns the highest title margins in the industry and remained profitable this year despite the challenging operating environment. This is important because title fees are regulated at the state and local level, restricting excessive take rates, so effective expense management is essential. Fee regulation entrenches the title market’s status quo because returns on capital are good but not high enough to justify new competition. Regulators and customers are most comfortable with existing providers because they are compliant with the regulatory landscape, reliable, possess the most data, have the deepest customer relationships, and constitute a tiny fraction of spend in the value chain…” (Click here to see the full text)

8. Coinbase Global, Inc. (NASDAQ:COIN)

Number of Hedge Fund Holders: 27

Coinbase Global, Inc. (NASDAQ:COIN) provides financial infrastructure and technology for the crypto economy. Mark Cuban has been a long-term admirer of cryptocurrencies. In April 2021, he noted that despite his large portfolio of altcoins and crypto firms, nearly 60% of his holdings remained concentrated in Bitcoin, the most-traded currency on Coinbase Global, Inc. (NASDAQ:COIN), one of the largest crypto firms in the world.

At the end of the third quarter of 2023, 27 hedge funds in the database of Insider Monkey held stakes worth $1.23 billion in Coinbase Global, Inc. (NASDAQ:COIN), the same as in the preceding quarter worth $1.28 billion.

7. Robinhood Markets, Inc. (NASDAQ:HOOD)

Number of Hedge Fund Holders: 28

Robinhood Markets, Inc. (NASDAQ:HOOD) operates a financial services platform in the United States. Mark Cuban used to own Dallas Mavericks, a sports team that accepted Dogecoin as payment for merchandise. Cuban has also publicly said that he owned nearly $500 worth of Dogecoin. Dogecoin is a cryptocurrency that can be traded using Robinhood Markets, Inc. (NASDAQ:HOOD).

At the end of the third quarter of 2023, 28 hedge funds in the database of Insider Monkey held stakes worth $777 million in Robinhood Markets, Inc. (NASDAQ:HOOD), the same as in the previous quarter worth $754 billion.

6. Live Nation Entertainment, Inc. (NYSE:LYV)

Number of Hedge Fund Holders: 40

Live Nation Entertainment, Inc. (NYSE:LYV) operates as a live entertainment company. In March 2020, Mark Cuban told news platform CNBC that he bought Live Nation Entertainment, Inc. (NYSE:LYV) stock as coronavirus fears rolled the market and led to a dramatic decrease in the prices of some equities.

At the end of the third quarter of 2023, 40 hedge funds in the database of Insider Monkey held stakes worth $2 billion in Live Nation Entertainment, Inc. (NYSE:LYV), compared to 41 in the preceding quarter worth $2.2 billion.

In addition to Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX), and Alphabet Inc. (NASDAQ:GOOG), Live Nation Entertainment, Inc. (NYSE:LYV) is one of the stocks to consider in the portfolio of Mark Cuban.

In its Q3 2023 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Live Nation Entertainment, Inc. (NYSE:LYV) was one of them. Here is what the fund said:

“Liberty Media Corporation-Liberty Live is a tracking stock created on 8/4/2023 representing Liberty Media Corporation’s holdings in Live Nation Entertainment, Inc. (NYSE:LYV) shares. Those holdings were previously attributed to Liberty SiriusXM and reattributed to a the newly created Liberty Live Group vehicle to reduce the complexity of the Liberty SiriusXM structure and make way for its potential combination with the underlying SiriusXM business. We believe the separation created some selling pressure on Liberty Live, creating an attractive discount of over 40% to the underlying value of its Live Nation holdings, and we took advantage of that discount to build a position. The Liberty Live Group is a small-cap vehicle through which we can own the underlying Live Nation business, which we have tracked and liked for years. Live Nation has significant competitive advantages in the live entertainment industry due to its unique combination of concert promotion, ticketing, venue management, and sponsorship businesses, which create a market share flywheel and margin structure that is difficult for competitors in any one of these underlying sub-segments to replicate independently. In addition to the upside we see in Live Nation, we think Liberty Live Group could eventually transition from a tracking stock to an asset-backed vehicle, which would pave the way for a structure consolidation with Live Nation and allow us to capture the current wide NAV discount.”

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