In this article, we discuss the top 3 stock picks of Michael Sidhom’s Immersion Capital. If you want our detailed analysis of Michael Sidhom’s history, investment philosophy, and hedge fund performance, go directly to the Top 8 Stock Picks of Michael Sidhom’s Immersion Capital.
3. salesforce.com, inc. (NYSE:CRM)
Immersion Capital’s Stake Value: $134,456,000
Percentage of Immersion Capital’s 13F Portfolio: 12.95%
Number of Hedge Fund Holders: 108
Sidhom’s Immersion Capital owns stakes worth $134.45 million in salesforce.com, inc. (NYSE:CRM), representing 12.95% of Sidhom’s Q2 portfolio.
Out of the 873 hedge funds monitored closely by Insider Monkey, 108 funds were bullish on salesforce.com, inc. (NYSE:CRM), with stakes valued at $11.76 billion at the end of June. This is compared to 91 hedge funds in the previous quarter, with stakes worth $8.83 billion.
Here is what Polen Capital has to say about salesforce.com, inc. (NYSE:CRM) in its Q3 2021 investor letter:
“Salesforce came under pressure earlier in the year after agreeing to purchase Slack for about $26 billion. Since then, management has articulated well the strategic rationale and integration of Slack into its other software offerings and has demonstrated continued double-digit organic revenue growth within its legacy product offerings. At its recent investor day, the company also outlined long-term growth plans in line with our estimates but probably above what others may have been expecting, especially on margin expansion.”
2. Alphabet Inc. (NASDAQ:GOOG)
Immersion Capital’s Stake Value: $218,396,000
Percentage of Immersion Capital’s 13F Portfolio: 21.04%
Number of Hedge Fund Holders: 155
Immersion Capital owns 89,441 shares in Alphabet Inc. (NASDAQ:GOOG), valued at $218.39 million, representing 21.04% of Sidhom’s 13F portfolio.
As of the end of June, 155 hedge funds in Insider Monkey’s database were bullish on Alphabet Inc. (NASDAQ:GOOG), down from 159 in the previous quarter.
On October 27, Monness Crespi analyst Brian White kept a Buy rating on Alphabet Inc. (NASDAQ:GOOG), stating a price target of $3660, up from $3500. He said that the company’s Q3 results were enviable, and Alphabet Inc. (NASDAQ:GOOG) is set to capitalize on the strong trend of digital advertising.
Here is what Alger has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 investor letter:
“Alphabet Inc. was among the top contributors to performance during the third quarter. Alphabet is a leading internet search provider and is a beneficiary in the share shift of advertising dollars from traditional mediums like television, radio and newspapers to digital platforms. The company is a leader in implementing Al, autonomous vehicles and cloud computing and owns the highly trafficked YouTube property. Alphabet contributed to performance due to a strong quarterly report highlighted by revenue growth that beat consensus expectations across segments. The company’s core search revenues have increased 10% over the past two years, with cloud computing increasing 8%. Results from YouTube also exceeded expectations. When discussing quarterly results, Alphabet management said retail, entertainment and travel were end markets that were particularly strong. The fixed cost structure of Alphabet’s search service resulted in profitability resulting from the increase in revenues being better than expected.”
1. Facebook, Inc. (NASDAQ:FB)
Immersion Capital’s Stake Value: $340,808,000
Percentage of Immersion Capital’s 13F Portfolio: 32.84%
Number of Hedge Fund Holders: 266
Facebook, Inc. (NASDAQ:FB) ranks first on our list of the top stock picks of Michael Sidhom’s Immersion Capital. The California-based multinational technology corporation operates as a social networking service, with over 2.9 billion active monthly users as of 2021. Facebook, Inc. (NASDAQ:FB) is one of the most valuable global companies, and is recognized as one of the Big Five companies in the US tech sector. Facebook, Inc. (NASDAQ:FB) acquired competing social media platforms, namely Instagram, WhatsApp, and Oculus in 2014.
Sidhom owns 980,150 shares in Facebook, Inc. (NASDAQ:FB), worth $340.8 million, accounting for 32.84% of Sidhom’s Q2 portfolio.
The stock is extremely sought-after by the smart money. 266 hedge funds in Insider Monkey’s database were bullish on Facebook, Inc. (NASDAQ:FB) at the end of June, up from 257 in the previous quarter.
Facebook, Inc. (NASDAQ:FB) reported earnings for the third quarter on October 25. The EPS for Facebook, Inc. (NASDAQ:FB) was $3.22, surpassing estimates by $0.04. The actual revenue for the company was $29.01 billion, missing estimated revenue by -$513.23 million.
On October 26, Truist analyst Youssef Squali kept a Buy rating on Facebook, Inc. (NASDAQ:FB), but lowered the price target from $425 to $400, after the Q3 results.
Here is what Polen Capital has to say about Facebook, Inc. (NASDAQ:FB) in its Q3 2021 investor letter:
“Facebook’s stock was pressured on concerns about regulation in the quarter. We are constantly monitoring the potential regulatory risks to Facebook (and all of our holdings). At this point, we see very little chance that regulation changes Facebook’s business model in a meaningful and adverse way. Regarding the recent data shared by a former Facebook employee and the company itself on some of the unfortunate negative consequences of social media, we recognize these types of issues will inevitably linger in different forms and fashions well into the future. We have been focused on the ability of Facebook to identify and mitigate these negative consequences while amplifying the value users typically cite for its apps across a long list of use cases. We continuously monitor the vibrance of the user base on Facebook’s apps to confirm that value.”
You can also take a look at 11 Best Dividend Aristocrats with over 3% Yield and Growth Stock Portfolio: 10 Stock Picks By Hedge Funds.
