In this article, we discuss the top 5 stock picks of Girish Kumar’s TenCore Partners. If you want to read our detailed analysis of Kumar’s history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stock Picks of Girish Kumar’s TenCore Partners.
5. Amazon.com, Inc. (NASDAQ:AMZN)
Girish Kumar’s TenCore Partners’ Stake Value: $55,172,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 7.62%
Stock Price as of December 31: $3,334.34
Number of Hedge Funds: 242
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Big Five tech companies leading the e-commerce industry and is currently involved in artificial intelligence, cloud computing, and digital streaming initiatives.
Colin Sebastian at Baird has chosen Amazon.com, Inc. (NASDAQ:AMZN) as one of the top three internet stock picks for 2022. The analyst thinks that the company will continue to gain from the digital transformation across the economy, and the revenue mix will shift towards recurring revenues. The stock has also been chosen as a top internet pick for 2022 by Mark Mahaney at Evercore ISI.
In its Q3 2021 investor letter, Davis Funds shared its stance on Amazon.com, Inc. (NASDAQ:AMZN). Here’s what the firm said:
“E-commerce, online search and advertising, social media and software are another component of the portfolio that have proven, attractive businesses. The online portion of the Fund is currently dominated by such market leaders as Amazon.com. We are attracted to these names based on the size and rapid expansion of their market opportunities globally, their ability to generate and grow new revenue sources through constant innovation, ample operating leverage as they continue to scale and capable, focused, highly competitive leadership teams. If purchased at sensible prices, these types of businesses in our experience can contribute meaningfully to long-term results.”
4. DoorDash, Inc. (NYSE:DASH)
Girish Kumar’s TenCore Partners’ Stake Value: $63,203,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 8.73%
Number of Hedge Funds: 42
Stock Price as of December 31: $148.90
DoorDash, Inc. (NYSE:DASH) is the biggest food delivery company in the US with over 55% market share. The San Francisco, California-based company initiated an ultra-fast 15-minutes or less delivery service in New York in December 2021. The orders are fulfilled by DashMarts, virtual convenience stores with an inventory of 2,000 essential household items. DoorDash, Inc. (NYSE:DASH) went public in December 2020 and has been a part of Girish Kumar’s TenCore Partners’ hedge fund portfolio since Q4 2020.
On December 15, Doug Anmuth at JPMorgan kept a Neutral rating with a price target of $175 on DoorDash, Inc. (NYSE:DASH). Owing to increased digitalization across the economy, Doug believes that internet companies are now better positioned as opposed to before the arrival of the COVID-19 pandemic. He further shared that an integral factor influencing stock price performance and volatility will be related to the operations of the specific organizations as we move towards normalization.
Out of the 867 hedge funds in Insider Monkey’s database, 42 funds reported owning a stake in DoorDash, Inc. (NYSE:DASH) at the end of Q3 2021, down from 45 in the previous quarter.
3. Meta Platforms, Inc. (NASDAQ:FB)
Girish Kumar’s TenCore Partners’ Stake Value: $87,055,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 12.03%
Number of Hedge Funds: 248
Stock Price as of December 31: $336.35
Meta Platforms, Inc. (NASDAQ:FB) has been a part of TenCore Partners’ portfolio since Q4 2019.
Colin Sebastian at Baird has termed Meta Platforms, Inc. (NASDAQ:FB) as one of the top internet stock picks for 2022. The analyst thinks that the investors in internet stocks are more concerned about near-term trends, growth outlook, and macroeconomic events as opposed to long–term secular growth drivers. As a result, they would be more interested in growth and margin numbers and less in secular growth trends or total addressable market. The analyst anticipates more positive development related to the core advertising trends in 2022. Meta Platforms, Inc. (NASDAQ:FB) is also considered as a top internet pick for 2022 by Mark Mahaney at Evercore ISI.
Investment management firm Canterbury Tollgate shared its stance on Meta Platforms, Inc. (NASDAQ:FB) in its Q3 2021 investor letter. Here’s what the firm said:
To say traditional media is anti-Facebook would not be an overstatement. An already intense and multi-year critique of (or attack on) Facebook has ratcheted up in recent weeks. Facebook’s research efforts have been reported on, if often derided, for nearly a decade. Going back to 2014, Slate.com called their research practices “unethical” when FB tried to study the impact social posts had on users. Now those efforts have been turned against them for the kill shot.
My job is to observe, assess, and allocate. Not to commentate on all the whims and wishes of media narrative. However, in the case of Facebook I cannot avoid going into some detail re: the onslaught against them, which I find to be most unwarranted and insincere.
Last month the Wall Street Journal ran a five-piece series titled “The Facebook Files” which allegedly shows how toxic Instagram is for teens. The foundation of their argument was a single slide from an internal presentation claiming, based on FB’s own research, that of teens who had a negative self-image, one-third said Instagram “made them feel worse.”iii Somehow the implication here is that this is not an inescapable aspect of either the human psyche and/or society-atlarge, but that it is of Facebook’s doing…” (Click here to see the full text)
2. Alphabet Inc. (NASDAQ:GOOG)
Girish Kumar’s TenCore Partners’ Stake Value: $120,255,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 16.61%
Number of Hedge Funds: 156
Stock Price as of December 31: $2,893.59
Alphabet Inc. (NASDAQ:GOOG) is the fourth member of the Big Five tech giants in TenCore Partners’ portfolio. The stock has been a part of Girish Kumar’s TenCore Partners’ portfolio every quarter since Q4 2019.
Hedge fund manager Dan Niles has also recommended Alphabet Inc. (NASDAQ:GOOG) as one of the few stocks to consider for investment in 2022. Although the hedge fund manager thinks the S&P 500 Index is trading at a high valuation and an interest rate increase by the Federal Reserve will result in a decline in the broader equity markets and the treasury market in 2022, he still believes that Alphabet Inc. (NASDAQ:GOOG) stock provides an upside for the investors. Meanwhile, Rohit Kulkarni, managing director at MKM Partners, considers Alphabet Inc’s decision to spin-off YouTube and take it public as a separate entity as one of the 10 Black Swan events for 2022.
RiverPark Funds mentioned Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 investor letter. Here’s what the firm said:
“Internet services leader Alphabet was also a top contributor for the quarter, hitting its all-time high on September 1. Fundamentals at the company remain stellar—the company reported its highest quarter ever for sales and profit in late July. The company reported secondquarter revenue of $62 billion, an increase of 62% year over year, which, when combined with strong expense controls, led to a tripling of operating income to $19 billion. The company experienced strong revenue growth across all its segments—Google Services (mostly Advertising) grew 63%, Google Cloud grew 54% and Other Bets grew 30%.
With its continued strength across its core Search and YouTube franchises and emerging strength in its still small Cloud business, we continue to view Alphabet as among the best-positioned secular growth franchises. Additionally, despite its strong performance this year, GOOG shares trade at a compelling 20x our 2022 EPS estimate (which includes earnings drags from losses in its Other Bets and Google Cloud segments, which lost a combined $2 billion last quarter), only a slight premium to the market.”
1. Salesforce.com, Inc. (NYSE:CRM)
Girish Kumar’s TenCore Partners’ Stake Value: $124,782,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 17.24%
Number of Hedge Funds: 119
Stock Price as of December 31: $254.13
Salesforce.com, Inc. (NYSE:CRM) is a software company providing customer relationship management (CRM) services through cloud-based software that cater to various aspects of CRM. The stock has been a part of Kumar’s portfolio since Q4 2019, and since then, the hedge fund has increased its holdings by more than three times in terms of the number of shares owned as compared to its initial holding.
In a report issued on December 22, Kirk Materne at Evercore ISI revealed Salesforce.com, Inc. (NYSE:CRM) as his top stock pick for 2022 with a price target of $375 and an Outperform rating.
In its Q3 2021 investor letter, Polen Capital discussed its stance on Salesforce.com, Inc. (NYSE:CRM). Here’s what the investment management firm said:
“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.”
You can also take a peek at the 10 Cheap ESG Stocks To Invest In and David Zorub’s Parsifal Capital Management’s Top 10 Stocks.
