In this article, we discuss the top 5 stock picks of billionaire Daniel Sundheim. If you want our detailed analysis of Sundheim’s history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stock Picks of Billionaire Daniel Sundheim.
5. Amazon.com, Inc. (NASDAQ:AMZN)
D1 Capital Partners’ Stake Value: $720,915,000
Percentage of D1 Capital Partners’ 13F Portfolio: 4.03%
Number of Hedge Fund Holders: 242
Amazon.com, Inc. (NASDAQ:AMZN), an ecommerce and tech giant, posted its Q3 results on October 28. EPS in the period equaled $6.12, missing analysts’ estimates by -$2.78. The $110.81 billion revenue also failed to meet analysts’ forecasted revenue by -$784.89 million.
Daniel Sundheim holds a $720.9 million stake in Amazon.com, Inc. (NASDAQ:AMZN) as of September 2021, which accounts for 4.03% of his total 13 securities. One of the leading stakeholders in the company is Ken Fisher’s Fisher Asset Management, with 1.93 million shares valued at $6.34 billion.
Of the 867 hedge funds tracked by Insider Monkey, 242 funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), with a total stake value of $42.55 billion. This is compared to 271 hedge funds owning a position in Amazon.com, Inc. (NASDAQ:AMZN) in the preceding quarter, with stakes worth $60.4 billion.
On November 24, JPMorgan analyst Doug Anmuth kept an Overweight rating on Amazon.com, Inc. (NASDAQ:AMZN) with a $4,350 price target, stating that he expects Amazon.com, Inc. (NASDAQ:AMZN) to surpass Walmart Inc. (NYSE:WMT) as the largest U.S. retailer in 2022, with holiday sales growing 14.5% year-over-year.
Here is what Polen Capital has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter:
“Amazon has also lagged as its revenue growth is slowing on the very difficult comparisons from last year when this behemoth was growing revenue by over 40%. We still expect exceptional long-term growth and significant margin expansion as the fastest growing (and now large) segments of Amazon are also generating the highest margins.”
4. Microsoft Corporation (NASDAQ:MSFT)
D1 Capital Partners’ Stake Value: $771,861,000
Percentage of D1 Capital Partners’ 13F Portfolio: 4.31%
Number of Hedge Fund Holders: 250
It was revealed in a November 26 story that Microsoft Corporation (NASDAQ:MSFT) CEO Satya Nadella sold about 50% of his common stock in the company on November 22, which amounted to 838,600 shares valued at $285.3 million.
Daniel Sundheim owns 2.72 million Microsoft Corporation (NASDAQ:MSFT) shares, worth $771.8 million, representing 4.31% of his portfolio as of September this year.
Microsoft Corporation (NASDAQ:MSFT) on October 26 posted its Q3 results. The Q3 EPS totaled $2.27, beating estimates by $0.19. Revenue for the quarter amounted to $45.32 billion, outperforming estimates by $1.33 billion, up 21.97% from the previous-year quarter.
Wells Fargo analyst Michael Turrin on November 22 initiated coverage of Microsoft Corporation (NASDAQ:MSFT) with an Overweight rating and a $400 price target, stating that the company had impressive room for growth and a bright future ahead, despite its already massive operations.
One of the leading Microsoft Corporation (NASDAQ:MSFT) stakeholders as of September 2021 is Arrowstreet Capital, holding a position worth over $5 billion in the company. Microsoft Corporation (NASDAQ:MSFT) is a highly coveted stock among the smart money, with 250 hedge funds holding stakes worth $65.8 billion in the tech giant. This is an increase as compared to the preceding quarter, when 238 funds were bullish on Microsoft Corporation (NASDAQ:MSFT) with total stakes amounting to $62.4 billion.
Here is what Alger has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2021 investor letter:
“Microsoft Corporation was among the top contributors to performance during the third quarter. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Microsoft reported that Azure grew 51% in the second quarter. This high unit volume growth is a primary driver of the company’s higher share price, but the company’s strong operating execution has enabled margin expansion that has also helped to increase forward earnings estimates. We believe Microsoft’s subscription-based software offerings and cloud computing services have a durable growth profile because they enhance customers’ growth initiatives and help them to diminish costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases.”
3. Robinhood Markets, Inc. (NASDAQ:HOOD)
D1 Capital Partners’ Stake Value: $776,614,000
Percentage of D1 Capital Partners’ 13F Portfolio: 4.34%
Number of Hedge Fund Holders: 20
Robinhood Markets, Inc. (NASDAQ:HOOD) is a California-based financial services company that acts as a stock broker and offers customers an electronic trading platform where stocks, exchange-traded funds, and cryptocurrencies can be exchanged without a commission being charged by the company. Daniel Sundheim, via D1 Capital Partners, holds a $776.6 million stake in Robinhood Markets, Inc. (NASDAQ:HOOD), which accounts for 4.34% of his Q3 portfolio.
On October 26, Robinhood Markets, Inc. (NASDAQ:HOOD) reported Q3 earnings. EPS in the quarter amounted to -$0.07, missing estimates by -$0.17. The revenue equaled $364.92 million, missing estimated revenue by -$72.63 million.
Deutsche Bank analyst Brian Bedell on November 24 opened a “Sell Catalyst Call” on Robinhood Markets, Inc. (NASDAQ:HOOD) stock as a short-term investment idea, stating that the company is likely to face extenuating near-term pressure. He kept a Hold rating on the stock, with a $32 price target.
Insider Monkey’s Q3 database suggests that 20 hedge funds were bullish on Robinhood Markets, Inc. (NASDAQ:HOOD), with stakes amounting to $4.68 billion.
2. JD.com, Inc. (NASDAQ:JD)
D1 Capital Partners’ Stake Value: $1,285,125,000
Percentage of D1 Capital Partners’ 13F Portfolio: 7.18%
Number of Hedge Fund Holders: 66
JD.com, Inc. (NASDAQ:JD), a Chinese e-commerce retailer, is one of billionaire Daniel Sundheim’s top stock picks from the third quarter. Sundheim’s D1 Capital Partners owns 17.78 million shares in JD.com, Inc. (NASDAQ:JD), worth $1.28 billion, representing 7.18% of the firm’s Q3 stock portfolio.
JD.com, Inc. (NASDAQ:JD), on November 18, posted Q3 earnings. The EPS totaled $0.49, beating estimates by $0.18. JD.com, Inc. (NASDAQ:JD) amassed a $34.25 billion revenue during the third quarter, which was up 29.44% from the prior-year quarter, outperforming estimates by $709.63 million.
Following the solid Q3 results, Benchmark analyst Fawne Jiang raised the price target on JD.com, Inc. (NASDAQ:JD) on November 19 to $117 from $102, and kept a Buy rating on the shares. The analyst stated that JD.com, Inc. (NASDAQ:JD) outperformed expectations in the third quarter despite supply chain bottlenecks and macro headwinds.
As of Q3 2021, 66 hedge funds were long JD.com, Inc. (NASDAQ:JD), down from 76 funds in the preceding quarter, as per Insider Monkey’s records. Tiger Global Management LLC is the leading JD.com, Inc. (NASDAQ:JD) stakeholder, with over 51 million shares in the company, valued at $3.6 billion.
Here is what Argosy Investors has to say about JD.com, Inc. (NASDAQ:JD) in its Q3 2021 investor letter:
“We sold JD as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”
1. Expedia Group, Inc. (NASDAQ:EXPE)
D1 Capital Partners’ Stake Value: $1,882,005,000
Percentage of D1 Capital Partners’ 13F Portfolio: 10.52%
Number of Hedge Fund Holders: 78
Expedia Group, Inc. (NASDAQ:EXPE), an online travel company, is the largest holding in Daniel Sundheim’s Q3 portfolio. D1 Capital Partners holds a $1.88 billion position in the company, representing 10.52% of the firm’s Q3 portfolio.
As of Q3 2021, 78 hedge funds tracked by Insider Monkey reported owning stakes in Expedia Group, Inc. (NASDAQ:EXPE), down from 87 funds in the previous quarter. The total value of the stakes in Q3 amounted to $6.47 billion. D1 Capital Partners is the leading Expedia Group, Inc. (NASDAQ:EXPE) stakeholder.
Expedia Group, Inc. (NASDAQ:EXPE) announced its Q3 earnings on November 4. The EPS totaled $3.53, beating estimates by $1.77. Revenue for the third quarter equaled $2.96 billion, up 96.94% year-over-year, topping estimates by $243.16 million.
Following the Q3 performance, Citi analyst Jason Bazinet raised the price target on Expedia Group, Inc. (NASDAQ:EXPE) to $190 from $166 and kept a Neutral rating on the stock on November 9.
Here is what ClearBridge Investments has to say about Expedia Inc. (NASDAQ:EXPE) in its Q1 2021 investor letter:
“Several of our better performers in the first quarter were purchased while their business models were under stress from COVID restrictions or the macro environment the pandemic created. What gave us confidence in purchasing Expedia were the actions the company took to extend out their balance sheets until travel resumed. It should benefit as a broader vaccination rollout prompts cruise lines to resume operations and consumers to start traveling again and are positioned to deliver better margins and gain pricing power as the economy normalizes due to the cost controls implemented during the downturn.”
You can also take a look at 10 Tech Stocks Chinese Billionaire Chen Tianqiao Loves and 10 European Stocks to Buy According to Tom Russo’s Hedge Fund.
