In this article, we discuss the top 5 stocks to buy according to billionaire Steve Cohen. If you want our detailed analysis of these stocks, go directly to the Top 10 Stocks to Buy According to Billionaire Steve Cohen.
5. Booking Holdings Inc. (NASDAQ:BKNG)
Point72 Asset Management’s Stake Value: $252,789,000
Percentage of Point72 Asset Management’s 13F Portfolio: 1.11%
Number of Hedge Fund Holders: 96
Booking Holdings Inc. (NASDAQ:BKNG) is a travel technology company that owns and manages multiple travel fare aggregators and travel metasearch engines, operating across 200 countries. Billionaire Steve Cohen owns 106,488 Booking Holdings Inc. (NASDAQ:BKNG) shares as of Q3 2021, increasing his stake in the company by 23%. The stock accounts for 1.11% of Cohen’s Q3 portfolio.
RBC Capital analyst Brad Erickson on December 16 upgraded Booking Holdings Inc. (NASDAQ:BKNG) to Outperform from Sector Perform with an unchanged $2,700 price target. The analyst stated that consensus underappreciated Booking Holdings Inc. (NASDAQ:BKNG)’s structurally higher profitability as compared to pre-pandemic levels, also citing its minimal exposure to the “subtle direct booking trend” that his U.S. property manager checks are detecting. Erickson also believes that Booking Holdings Inc. (NASDAQ:BKNG) may see increased market share in the U.S.
In the third quarter earnings report published by Booking Holdings Inc. (NASDAQ:BKNG) on November 3, the company posted an EPS of $37.70, beating estimates by $4.67. Revenue over the period jumped 77.12% year-over-year to $4.68 billion, outperforming estimates by $385.44 million.
Of the 96 hedge funds that were long Booking Holdings Inc. (NASDAQ:BKNG) as of Q3 2021, Harris Associates is the largest company stakeholder, with 668,053 shares worth $1.58 billion.
Here is what L1 Capital has to say about Booking Holdings Inc. (NASDAQ:BKNG) in its Q3 2021 investor letter:
“We reinvested the proceeds from our successful investment in Thermo Fisher in Booking Holdings (Booking). Booking was an investment in the Fund at Inception and was featured in our inaugural June 2019 Quarterly Report. The company owns the world’s largest online travel agent (OTA), Booking.com. To say the past 2.5 years has been volatile for Booking is a major understatement. Booking’s management has had to address the COVID-19-driven collapse in demand for travel accommodation, as well as to manage volatile demand as the world gradually recovers, interrupted by second and third waves of COVID-19 as variants arise.
Throughout these volatile market conditions, Booking’s management has executed against a consistent strategy, investing in its platform and network of accommodation providers, and expanding its associated services while improving efficiencies. We believe Booking will come out of the COVID-19 environment a stronger business, with less competition and consumers more predisposed to booking their travel accommodation online. Travel is recovering strongly as vaccination rates increase and COVID-19 related restrictions are lifted, and we expect Booking’s earnings and cash flow to also recover strongly over the coming years.”
4. Twitter, Inc. (NYSE:TWTR)
Point72 Asset Management’s Stake Value: $274,004,000
Percentage of Point72 Asset Management’s 13F Portfolio: 1.20%
Number of Hedge Fund Holders: 94
Twitter, Inc. (NYSE:TWTR), a microblogging and social networking platform, is one of the top stocks to buy according to billionaire Steve Cohen, with his hedge fund boosting its stake in Twitter, Inc. (NYSE:TWTR) by 148% in the third quarter. Point72 Asset Management owns 4.53 million Twitter, Inc. (NYSE:TWTR) shares, worth $274 million, representing 1.20% of the firm’s total Q3 securities.
Twitter, Inc. (NYSE:TWTR) announced financial results for the quarter ending September 2021 on October 26. The company posted a loss per share of $0.54, missing estimates by $0.72. The revenue totaled $1.28 billion, up 37.13% from the preceding year quarter, surpassing estimates by $1.02 million.
Loop Capital analyst Alan Gould lowered the firm’s price target on Twitter, Inc. (NYSE:TWTR) to $65 from $84 but kept a Buy rating on the shares on December 21. The analyst stated that not many investors see potential for the company to generate 25% top line growth, raising an “unanswerable question” on margin outlook, particularly after Twitter, Inc. (NYSE:TWTR) indicated that expenses will grow beyond the 25% floor already in place with existing programs.
In Q3 2021, 94 hedge funds were long Twitter, Inc. (NYSE:TWTR), up from 89 funds in the prior quarter. Lone Pine Capital, the largest Twitter, Inc. (NYSE:TWTR) stakeholder, increased its stake in the company by 118% in the third quarter, holding a $1.30 billion position.
Here is what Greenwood Investors has to say about Twitter, Inc. (NYSE:TWTR) in its Q3 2021 investor letter:
“Being entrepreneurial, by definition, means taking the path untraveled, and heading into the unknown with daring boldness. Offense playbooks, by design, must take competition by surprise. Coming from a humble place with brands and companies that were ridiculed by competitors, when Sergio put medium-term plans out to the market, they were not timid. He would always aim higher than anyone, especially his competitors, believed he and his team could reach. And while not every target was always achieved, the formidable results speak for themselves.
This past earnings season, as Twitter was the only social media company to deliver on guidance while also confirming the quarter ahead to be at least as good, the stock sold off materially as its monetizable daily active user (MDAU) targets in the medium-term were called into question. While founder Jack Dorsey is clearly unafraid to look foolish to the public, or even in front of congress, he also manages multiple businesses at the same time. Competitors openly make fun of him. But his team is exceptionally loyal to him, and they have set out very ambitious targets for themselves over the next few years. The recent sell-off in Twitter shares was like deja vu all over again, as I reminisced about the Fiat capital markets day in 2014, fittingly on Twitter in this tweet thread. With its product and revenue servers rebuilt, it can now innovate and launch new ad formats faster than ever before. We look forward to the Twitter team pressing its offense strategy as a major peer loses focus on its core business.”
3. Meta Platforms, Inc. (NASDAQ:FB)
Point72 Asset Management’s Stake Value: $295,963,000
Percentage of Point72 Asset Management’s 13F Portfolio: 1.29%
Number of Hedge Fund Holders: 248
Meta Platforms, Inc. (NASDAQ:FB) is the parent company of leading social media platforms, namely Facebook, Instagram, and WhatsApp. The recent rebranding of Facebook Inc. to Meta Platforms, Inc. (NASDAQ:FB) represents the company’s focus on building the metaverse. Steve Cohen, via Point72 Asset Management, holds an approximately $296 million stake in Meta Platforms, Inc. (NASDAQ:FB), which accounts for 1.29% of the firm’s total securities.
On October 25, Meta Platforms, Inc. (NASDAQ:FB) posted its Q3 results, announcing an EPS of $3.22, exceeding estimates by $0.04. The $29.01 billion revenue increased 35.12% year-over-year, but missed estimates by $513.23 million.
Loop Capital analyst Alan Gould on December 20 lowered the price target on Meta Platforms, Inc. (NASDAQ:FB) to $380 from $420 but kept a Buy rating on the shares. According to the analyst, the magnitude of Meta Platforms, Inc. (NASDAQ:FB)’s spending on the metaverse over the next several years and how rapidly the spending at Facebook Reality Labs will increase from the $10 billion spent in 2021 will be a key focus for investors.
Meta Platforms, Inc. (NASDAQ:FB) is a popular stock among the hedge funds, as 248 funds reported owning stakes in the company as of Q3 2021, worth $38.5 billion. Fisher Asset Management, one of the leading Meta Platforms, Inc. (NASDAQ:FB) stakeholders, increased its stake in the company by 54% in the third quarter, holding 7.5 million shares worth $2.44 billion.
Here is what Canterbury Tollgate has to say about Meta Platforms, Inc. (NASDAQ:FB) in its Q3 2021 investor letter:
“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-at large, but that it is of Facebook’s doing…” (Click here to see the full text)
2. Uber Technologies, Inc. (NYSE:UBER)
Point72 Asset Management’s Stake Value: $491,029,000
Percentage of Point72 Asset Management’s 13F Portfolio: 2.15%
Number of Hedge Fund Holders: 143
Uber Technologies, Inc. (NYSE:UBER), a mobility-as-a-service provider headquartered in California, is one of the best stocks to buy according to billionaire Steve Cohen. Point72 Asset Management owns almost 11 million Uber Technologies, Inc. (NYSE:UBER) shares, worth $491 million, representing 2.15% of the firm’s total investments.
In the third quarter of 2021, 143 hedge funds were bullish on Uber Technologies, Inc. (NYSE:UBER), up from 135 funds in the prior quarter. Brad Gerstner’s Altimeter Capital Management is the biggest Uber Technologies, Inc. (NYSE:UBER) stakeholder, with 24.5 million shares worth over $1 billion.
On November 4, Uber Technologies, Inc. (NYSE:UBER) posted earnings for the third quarter. The company announced a loss per share of $0.07, beating estimates by $0.08. Revenue over the period equaled $4.85 billion, increasing 54.84% year-over-year, topping estimates by $435.63 million.
JPMorgan analyst Doug Anmuth lowered the price target on Uber Technologies, Inc. (NYSE:UBER) to $68 from $72 and kept an Overweight rating on the shares on December 15. Heading into 2022, the analyst believes the internet group is in a stronger position than pre-pandemic levels amid increased digitization of the economy.
Here is what Tollymore Investment Partners has to say about Uber Technologies, Inc. (NYSE:UBER) 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, Uber broke the link between hailing a taxi. Uber 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.”
1. salesforce.com, inc. (NYSE:CRM)
Point72 Asset Management’s Stake Value: $534,935,000
Percentage of Point72 Asset Management’s 13F Portfolio: 2.34%
Number of Hedge Fund Holders: 119
salesforce.com, inc. (NYSE:CRM) is a cloud-based software company from California, specializing in customer relationship management service, and offering enterprise applications that enable marketing automation, data analytics, and app development. salesforce.com, inc. (NYSE:CRM) is the top stock to buy according to billionaire Steve Cohen, with his hedge fund owning a $534.9 million stake in the company, which accounts for 2.34% of his total 13F portfolio.
In the third quarter earnings report published on November 30, salesforce.com, inc. (NYSE:CRM) posted an EPS of $1.27, beating estimates by $0.35. The revenue jumped 26.65% year-over-year, reaching $6.86 billion, outperforming estimates by $59.66 million.
Evercore ISI analyst Kirk Materne kept an Outperform rating and a $375 price target on salesforce.com, inc. (NYSE:CRM) on December 22. The analyst stated that heading into 2022, the combination of higher interest rates, “still fairly rich multiples”, and a much bigger pool of software stocks could continue to create intense volatility, especially among the higher-valuation names, and that he expects that investors will ultimately revert to names that can deliver durable growth and have pricing power. In that context, he calls salesforce.com, inc. (NYSE:CRM) his top pick for 2022 as he believes the stock is trading at a discount given its growth profile at scale.
Matrix Capital Management is one of the largest salesforce.com, inc. (NYSE:CRM) stakeholders as of Q3 2021, with 2.62 million shares worth $711.2 million. Overall, 119 hedge funds in the database of 867 elite funds maintained by Insider Monkey as of the third quarter were bullish on salesforce.com, inc. (NYSE:CRM), up from 108 funds in the prior quarter.
Here is what Vulcan Value Partners has to say about salesforce.com, inc. (NYSE:CRM) in its Q3 2021 investor letter:
“Salesforce.com Inc., a material contributor for the quarter, is the dominant provider of customer relationship management (CRM) software and technology. Salesforce has high retention rates, pricing power, a large and growing addressable market, high free cash flow, and a competitive moat. The company continues to execute well, and we believe the global pandemic has only improved its prospects and future returns.”
You can also take a look at Top Cyclical Stocks To Buy Now and 10 Stocks to Buy and Hold According to Bill Gates.
