In this article, we discuss 5 tech stocks that Tiger Cub Chase Coleman is selling. If you want to see more tech stocks discarded by the billionaire in Q1, check out Tiger Cub Chase Coleman is Selling These 10 Tech Stocks.
5. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 113
Netflix, Inc. (NASDAQ:NFLX) is an American entertainment company that offers TV series, documentaries, feature films, and mobile games to customers worldwide. Chase Coleman owned 1.08 million Netflix, Inc. (NASDAQ:NFLX) shares in the fourth quarter of 2021, which he sold off completely in the first quarter of 2022.
Wedbush analyst Michael Pachter on May 16 upgraded Netflix, Inc. (NASDAQ:NFLX) to Outperform from Neutral with a $280 price target as he sees the shares as a promising investment. The analyst thinks Netflix, Inc. (NASDAQ:NFLX) is positioned to outperform its guidance for Q2, mostly because of the staggered release of the TV series, Ozark. While it is possible that Netflix, Inc. (NASDAQ:NFLX) will once again issue a low guidance for Q3, the analyst believes the staggered release date for Stranger Things will reduce churn, and once again thinks that the company is positioned to grow. If the company sticks to its commitment to lowering churn by providing new content over the next weeks, investors will see a growth in subscribers and their confidence in Netflix, Inc. (NASDAQ:NFLX)’s business model will be reinstated.
In Q1 2022, Ken Fisher’s Fisher Asset Management was a significant shareholder of Netflix, Inc. (NASDAQ:NFLX), with 6.35 million shares worth $2.38 billion. Overall, in the fourth quarter of 2021, 113 hedge funds were long Netflix, Inc. (NASDAQ:NFLX), up from 106 funds in the earlier quarter.
Here is what ClearBridge Investments has to say about Netflix, Inc. (NASDAQ:NFLX) in its Q1 2022 investor letter:
“After being a prime beneficiary of increased viewing patterns during the stay-at-home period of COVID-19, Netflix is recalibrating what a normal growth trajectory will look like as global economies fully reopen. The stock fell sharply after the company modestly reduced its net subscriber additions for the current quarter, calling into question its ability to continue to deliver double-digit subscriber growth.
We believe one of our edges as active managers is our long-term orientation and willingness to be both early and patient with additions to the portfolio. With Netflix, we remain convinced that our thesis for owning the stock is intact. While some fear the U.S. streaming market is becoming saturated, Netflix’s penetration of global broadband homes is still less than 50%, a figure that doesn’t even include the opportunity to attract more mobile-only smartphone users.”
4. Coupa Software Incorporated (NASDAQ:COUP)
Number of Hedge Fund Holders: 59
Coupa Software Incorporated (NASDAQ:COUP) offers a cloud-based business spend management platform, connecting customers with suppliers worldwide. Tiger Global’s 13F filings for Q1 2022 reveal that the fund sold out of its $320.5 million stake in Coupa Software Incorporated (NASDAQ:COUP).
On May 19, DA Davidson analyst Robert Simmons initiated coverage of Coupa Software Incorporated (NASDAQ:COUP) with a Neutral rating and a $75 price target. According to the analyst, Coupa Software Incorporated (NASDAQ:COUP) is the most significant provider in the business spend management sector and its well on its way to becoming the industry leader. He added that Coupa Software Incorporated (NASDAQ:COUP)’s new sales are somewhat slower in the near-term and warns that its short-term performance will be muted. However, he believes that the company is well positioned for 20% organic growth in the next few quarters.
According to Insider Monkey’s database, Coupa Software Incorporated (NASDAQ:COUP) was part of 59 public hedge fund portfolios in Q4 2021, up from 52 funds in the prior quarter. Mick Hellman’s HMI Capital held a leading stake in Coupa Software Incorporated (NASDAQ:COUP) in the first fiscal quarter of 2022, with more than 2 million shares worth $212.3 million.
Here is what ClearBridge Investments has to say about Coupa Software Incorporated (NASDAQ:COUP) in its Q2 2021 investor letter:
“Within IT, we added positions in Coupa Software, a leader in the fast growing Business Spend Management market with opportunity to double its total addressable market by harnessing B2B payments with its Coupa Pay product; and AppLovin, a leading mobile gaming advertising network in a unique position to utilize its ad expertise to grow its own mobile game business at low user acquisition costs.”
3. Coupang, Inc. (NYSE:CPNG)
Number of Hedge Fund Holders: 29
Coupang, Inc. (NYSE:CPNG) was incorporated in 2010 and is headquartered in Seoul, South Korea. The company runs an e-commerce platform in South Korea, operating via Product Commerce and Growth Initiatives segments. Chase Coleman owned 3.5 million shares of Coupang, Inc. (NYSE:CPNG) in Q4 2021, and he discarded the position entirely in the first quarter of 2022.
Mizuho analyst James Lee on May 16 lowered the price target on Coupang, Inc. (NYSE:CPNG) to $18 from $28 and kept a Neutral rating on the shares. As per the analyst, Coupang, Inc. (NYSE:CPNG) reported notably lower than projected EBITDA losses owing to its disciplined investment approach in the last quarter. However, the fiscal 2022 EBITDA guidance remained unchanged, given supply chain challenges and inflationary pressure.
The Q4 database of Insider Monkey suggests that 29 hedge funds were bullish on Coupang, Inc. (NYSE:CPNG), down from 45 funds in the preceding quarter. Lee Ainslie’s Maverick Capital is a notable shareholder of the company as of Q1 2022, with 86.3 million shares worth $1.5 billion.
2. Bumble Inc. (NASDAQ:BMBL)
Number of Hedge Fund Holders: 25
Bumble Inc. (NASDAQ:BMBL) is an American company that provides online dating and social networking platforms in North America, Europe, and internationally. Tiger Global added Bumble Inc. (NASDAQ:BMBL) to its portfolio in Q1 2021. In the fourth quarter of 2021, the stake was valued at $33.8 million, which was sold off entirely in Q1 2022.
Morgan Stanley analyst Lauren Schenk lowered the price target on Bumble Inc. (NASDAQ:BMBL) to $28 from $30 and kept an Equal Weight rating on the shares on May 16, following an in-line Q1 report that she noted reflected “no big surprises”. Bumble Inc. (NASDAQ:BMBL)’s full-year revenue is projected to lie at the low end of the guidance because of foreign exchange impact and its full year EBITDA view is slashed due to Google fees, observed the analyst. Though its recent product pipeline “appears interesting” and she sees “more upside than downside from here”, the analyst’s Equal Weight rating on Bumble Inc. (NASDAQ:BMBL) is because of a relative preference for industry peers.
According to the fourth quarter database of Insider Monkey, 25 hedge funds were bullish on Bumble Inc. (NASDAQ:BMBL), down from 35 funds in the prior quarter. In Q1 2022, John Smith Clark’s Southpoint Capital Advisors reported a prominent stake in the company, consisting of 2.6 million shares worth $77.6 million.
Here is what Baron Funds has to say about Bumble Inc. (NASDAQ:BMBL) in its Q2 2021 investor letter:
“Bumble Inc. is an online dating platform geared toward females with more than 40 million users. Shares declined on its 2021 revenue outlook. Although this exceeded Street estimates, it was likely not as high as investors may have expected. Some uncertainty around the timing of the recovery in in-person dating also pressured shares. We exited our position during the period.”
1. Airbnb, Inc. (NASDAQ:ABNB)
Number of Hedge Fund Holders: 63
Airbnb, Inc. (NASDAQ:ABNB) is a California-based travel technology firm that offers lodging and vacation rentals to users around the world. Chase Coleman acquired a position in Airbnb, Inc. (NASDAQ:ABNB) in the fourth quarter of 2020, buying 650,000 shares worth $95.4 million. The stake was valued at $108.2 million in Q4 2021, and it was disposed of completely in Q1 2022.
Truist analyst Naved Khan informed investors on May 11 that Airbnb, Inc. (NASDAQ:ABNB)’s new customer-focused features are likely to contribute towards greater conversion, guest retention, and repeat bookings. The analyst maintained a Hold rating and a $190 price target on the shares, adding that the features enhance guest flexibility and efficiently increase the inventory available for longer stays, and are likely to result in higher listings on the platform.
Among the hedge funds tracked by Insider Monkey, 63 funds were long Airbnb, Inc. (NASDAQ:ABNB) at the end of the fourth quarter of 2021, up from 58 funds in the earlier quarter. In Q1 2022, Jim Simons’ Renaissance Technologies reported a prominent stake in the company, comprising 3.40 million shares worth $584.6 million.
Here is what Tollymore Investment Partners has to say about Airbnb, Inc. (NASDAQ:ABNB) in its Q3 2021 investor letter:
“Today disruptors are not typically seeking to replace incumbents entirely. Rather, they break the links in the customer journey, in doing so better aligning monetisation with value creation and minimizing externalities. For example, Airbnb broke the link between staying in residential property and owning it. Airbnb is a specific example of a business model innovation which separated asset use from ownership. This is hardly a novel idea; it’s called renting. Rental models lend themselves to assets which are expensive and durable, and where usage is infrequent.”
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