In this article, we discuss the 5 stocks Stanley Druckenmiller is loading up on. If you want to read our detailed analysis of these stocks, go directly to Stanley Druckenmiller is Loading Up on These 15 Stocks.
5. General Motors Company (NYSE: GM)
Number of Hedge Fund Holders: 86
General Motors Company (NYSE: GM) is placed fifth on our list of 15 stocks Stanley Druckenmiller is loading up on. The company makes and sells automotives and is headquartered in Michigan. According to the latest filings, Duquesne Capital owned 566,125 shares in General Motors Company (NYSE: GM) at the end of June 2021 worth $33.4 million, representing 0.96% of the portfolio.
On August 4, investment advisory Citi reiterated a Buy rating on General Motors Company (NYSE: GM) stock with a price target of $90, noting that the second quarter ended up being “noisier than expected” for the carmaker.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in General Motors Company (NYSE: GM) with 34 million shares worth more than $2 billion.
Junto Investments, in its Q4 2020 investor letter, mentioned General Motors Company (NYSE: GM). Here is what the fund has to say about General Motors Company in its letter:
“General Motors was the biggest gainer. We managed to buy it at a screamingly cheap price in the middle of March. A lot of interesting news has emerged about GM recently, including the new electric product delivery system BrightDrop and GM Cruise’s team-up with Microsoft Azure to commercialize self-driving cars in 2021. GM’s intrinsic value is crystallizing and the company is worth a whole lot more than is still reflected in the market.”
4. Smartsheet Inc. (NYSE: SMAR)
Number of Hedge Fund Holders: 49
Smartsheet Inc. (NYSE: SMAR) is a Washington-based firm that markets a cloud work execution platform. It is ranked fourth on our list of 15 stocks Stanley Druckenmiller is loading up on. The fund last owned a stake in the company in the second quarter of 2019. Securities filings reveal that Duquesne Capital owned 495,085 shares in Smartsheet Inc. (NYSE: SMAR) at the end of June 2021 worth $35.8 million, representing 1.02% of the portfolio.
On August 19, investment advisory Jefferies upgraded Smartsheet Inc. (NYSE: SMAR) stock to Buy from Hold and raised the price target to $85 from $65, noting that the firm operated in the low cost, high value pick work collaboration solution space.
At the end of the second quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $1.48 billion in Smartsheet Inc. (NYSE: SMAR), up from 39 in the preceding quarter worth $1.49 billion.
3. Moderna, Inc. (NASDAQ: MRNA)
Number of Hedge Fund Holders: 37
Moderna, Inc. (NASDAQ: MRNA) is a Cambridge-based biotechnology company. It is placed third on our list of 15 stocks Stanley Druckenmiller is loading up on. Latest data shows that Duquesne Capital owned 222,400 shares in Moderna, Inc. (NASDAQ: MRNA) at the end of the second quarter of 2021 worth $52.2 million, representing 1.5% of the portfolio.
On July 15, investment advisory Jefferies kept a Hold rating on Moderna, Inc. (NASDAQ: MRNA) stock but raised the price target to $250 from $170, noting that the advisory expected the revenue guidance for the company to increase for the year.
At the end of the second quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth $5.7 billion in Moderna, Inc. (NASDAQ: MRNA), down from 39 in the preceding quarter worth $1.6 billion.
In its Q2 2021 investor letter, Baillie Gifford, an asset management firm, highlighted a few stocks and Moderna, Inc. (NASDAQ: MRNA) was one of them. Here is what the fund said:
“Among the top contributors to Fund performance in the second quarter was Moderna. Moderna has just reported its first profitable quarter in the company’s history – net income for the most recent quarter was $1.2 billion. It reported revenue of $1.9 billion, an impressive increase compared to $8 million a year ago, driven by the sales of its Covid-19 vaccine. Moderna is expecting to deliver up to 1 billion vaccine doses in 2021 and is in discussions to increase global supply to governments around the world. Our long-term focus remains on the transformational potential of Moderna’s technology and its ability to address different diseases.”
2. Airbnb, Inc. (NASDAQ: ABNB)
Number of Hedge Fund Holders: 58
Airbnb, Inc. (NASDAQ: ABNB) is ranked second on our list of 15 stocks Stanley Druckenmiller is loading up on. The firm owns and runs an online platform for travel and operates from California. According to 13F filings, Duquesne Capital owned 561,831 shares in Airbnb, Inc. (NASDAQ: ABNB) at the end of June 2021 worth $86 million, representing 2.47% of the portfolio.
On August 17, investment advisory Citi maintained a Neutral rating on Airbnb, Inc. (NASDAQ: ABNB) stock and raised the price target to $152 from $149. Jason Bazinet, an analyst at the firm, issued the ratings update.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Airbnb, Inc. (NASDAQ: ABNB) with 3.4 million shares worth more than $526 million.
In its Q2 2021 investor letter, Worm Capital LLC, an asset management firm, highlighted a few stocks and Airbnb, Inc. (NASDAQ: ABNB) was one of them. Here is what the fund said:
“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.”)..”
1. Netflix, Inc. (NASDAQ: NFLX)
Number of Hedge Fund Holders: 113
Netflix, Inc. (NASDAQ: NFLX) is placed first on our list of 15 stocks Stanley Druckenmiller is loading up on. The company provides entertainment services and is headquartered in California. Regulatory filings show that Duquesne Capital owned 172,215 shares in Netflix, Inc. (NASDAQ: NFLX) at the end of June 2021 worth $90 million, representing 2.61% of the portfolio.
On July 21, investment advisory UBS maintained a Buy rating on Netflix, Inc. (NASDAQ: NFLX) stock with a price target of $620, noting the quarterly results of the firm showed resilience amid tough competition.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Netflix, Inc. (NASDAQ: NFLX) with 4.6 million shares worth more than $2.4 billion.
In its Q1 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Netflix, Inc. (NASDAQ: NFLX) was one of them. Here is what the fund said:
“We purchased Netflix in March, initiating a 3% position in the Portfolio. We believe Netflix is a highly competitively advantaged company. It has recently met all our investment guardrails, and we anticipate it will remain sustainably above our guardrails over the next five years and beyond. We know Netflix for its ubiquitous streaming service and deep library of owned content. The company has made investments in this content (currently running at nearly $20 billion/year), generally keeping subscribers highly engaged and loyal to their service. The company has number one market share in 99% of markets globally, but it is our view that video streaming on-demand is still an underpenetrated space with many years of attractive growth likely ahead. The service is also relatively affordable at roughly $11/month on average globally.
We believe Netflix’s growth in content spend is beginning to moderate, which could allow margin expansion to continue for many years when paired with ongoing subscriber growth and price increases. While there is competition from the likes of Apple (Apple TV+), Amazon (Prime Video), Disney (Disney+ and Hulu), and others, we believe there can be a handful of winners in this industry. Already, we see many people subscribe to multiple streaming video services, with Netflix being their “anchor” service. That said, the barriers to entry are high, and we believe they are getting higher given the substantial amount of capital and size of the subscriber base required to maintain a competitive service for both viewers and content producers. Over the next five years, we expect Netflix’s earnings growth to be approximately 30% annualized and free cash flow to grow at an even higher rate.”
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