In this article, we discuss the top 5 tech stock picks of Adam Parker’s Center Lake Capital. If you want our detailed analysis of Adam Parker’s history, investment philosophy, and hedge fund performance, go directly to the Top 10 Tech Stock Picks of Adam Parker’s Center Lake Capital.
5. Facebook, Inc. (NASDAQ:FB)
Center Lake Capital’s Stake Value: $56,262,000
Percentage of Center Lake Capital’s 13F Portfolio: 8.08%
Number of Hedge Fund Holders: 266
Facebook, Inc. (NASDAQ:FB) is another top tech stock to invest in today according to Adam Parker’s Center Lake Capital. Facebook, Inc. (NASDAQ:FB) is a multinational tech giant operating a social networking service, with more than 2.9 billion users per month as of 2021.
Parker’s Center Lake Capital owns 149,000 shares in Facebook, Inc. (NASDAQ:FB) as of the end of the second quarter, valued at $56.26 million, representing 8.08% of Parker’s 13F portfolio.
The stock is immensely popular with hedge funds. 266 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.
Wedgewood Partners mentioned Facebook, Inc. (NASDAQ:FB) in its Q3 2021 investor letter. Here is what they said:
“Facebook detracted from performance despite posting a staggering +56% growth in advertising revenues. Much of the stock’s underperformance was driven by non operating concerns that we view as mostly political in nature. The Company’s digital properties command a massive audience of over 2.7 billion daily users, so any government or state actor would be able to wield tremendous power by controlling that audience and it should not be a surprise when those actors attempt to do that. However, Facebook has invested aggressively in its content curation capabilities that address many of the concerns raised by media and political critics. We continue to carry Facebook at our maximum weighting as the stock is trading in line with a market multiple despite unrivaled competitive positioning and rapid growth, representing one of the best risk-rewards available in the market.”
4. Amazon.com, Inc. (NASDAQ:AMZN)
Center Lake Capital’s Stake Value: $68,803,000
Percentage of Center Lake Capital’s 13F Portfolio: 9.89%
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) is an immensely popular tech stock according to Adam Parker’s Center Lake Capital. The American multinational tech corporation is focused on e-commerce, cloud computing, digital streaming, and artificial intelligence.
Parker’s Center Lake Capital, as of the end of the second quarter, owns stakes worth $68.8 million in Amazon.com, Inc. (NASDAQ:AMZN), making up 9.89% of Parker’s 13F portfolio.
Amazon.com, Inc. (NASDAQ:AMZN) is the most popular tech stock amongst the smart money. Of the hedge funds tracked by Insider Monkey, 271 funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) at the end of June, up from 243 in the previous quarter.
Credit Suisse analyst Stephen Ju kept an Outperform rating on the stock on October 22, while lowering the price target from $4700 to $4200.
Worm Capital LLC mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter. Here is what they said:
“Our core portfolio as of this writing—TSLA, SPOT, SHOP, ABNB, and AMZN—are all premier examples of companies that use the concept of aggregation of marginal gains to continuously improve their value proposition for customers. After all, what is innovation if not just a continuous search for fractional advantages in business?
Amazon, for instance, accumulates marginal gains by compressing their costs year after year for consumers, creating an infrastructure and logistics network unrivaled by its peers. In the short-term, the market can often misunderstand the intentions of the “marginal gain accumulators,” but over time, their value-creation becomes obvious in hindsight.”
3. Microsoft Corporation (NASDAQ:MSFT)
Center Lake Capital’s Stake Value: $71,789,000
Percentage of Center Lake Capital’s 13F Portfolio: 10.32%
Number of Hedge Fund Holders: 238
As of the end of June, Parker’s Center Lake Capital owns 265,000 shares in Microsoft Corporation (NASDAQ:MSFT), amounting to $71.78 million, representing 10.32% of Parker’s 13F portfolio.
Out of the 873 hedge funds tracked by Insider Monkey, 238 funds were bullish on Microsoft Corporation (NASDAQ:MSFT) at the end of Q2, with stakes worth $62.46 billion.
Baron Opportunity Fund mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q2 2021 investor letter. Here is what the fund said:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft was a top contributor in the period because it trades at reasonable free cash flow and earnings valuations, has cloud and digital transformation tailwinds at its back, reported a solid March quarter, and beat Street expectations by a wide margin. Microsoft’s results continued to be strong across the board, with Azure cloud computing revenues up 46% in constantcurrency (“cc”) terms and commercial cloud bookings growth of 38% cc, the best in years. Microsoft also reported robust profitability growth, with operating income expanding 31% and GAAP earnings up 45%. We believe the company is well positioned for continued solid growth and profitability through market share gains as more companies look to transform and digitize their businesses as they move operations to the cloud.”
2. Alphabet Inc. (NASDAQ:GOOG)
Center Lake Capital’s Stake Value: $75,695,000
Percentage of Center Lake Capital’s 13F Portfolio: 10.88%
Number of Hedge Fund Holders: 190
Parker’s Center Lake Capital owns 31,000 shares in Alphabet Inc. (NASDAQ:GOOG) as of the end of June, valued at $75.69 million, and making up 10.88% of Parker’s 13F portfolio.
At the end of June, 155 hedge funds in Insider Monkey’s database were long Alphabet Inc. (NASDAQ:GOOG), down from 159 in the previous quarter.
Wedgewood Partners mentioned Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 portfolio. Here is what they said:
“Alphabet’s core Google search business accelerated to multiyear highs, up nearly +70% driven in part by advertisers rushing to the Company’s Android platform. We estimate Android runs on nearly three-quarters of all smartphones; however, its share of ad spend is lower. Recent policy changes to Apple’s iOS operating system have made it more difficult for advertisers to get a return on its ad spend across the Apple ecosystem. These changes should help close the gap between Android and iOS advertising share and sustain Alphabet’s torrid growth.”
1. Adobe Inc. (NASDAQ:ADBE)
Center Lake Capital’s Stake Value: $76,133,000
Percentage of Center Lake Capital’s 13F Portfolio: 10.94%
Number of Hedge Fund Holders: 89
Adobe Inc. (NASDAQ:ADBE) is the top tech stock pick of Adam Parker’s Center Lake Capital. A multinational computer software company, Adobe Inc. (NASDAQ:ADBE) offers software applications for graphics, photography, illustration, animation, multimedia/video, motion pictures and print. With millions of users around the globe, the signature products by Adobe Inc. (NASDAQ:ADBE) include Adobe Photoshop, Adobe Illustrator, Adobe Creative Cloud, and Adobe Acrobat Reader.
Parker’s Center Lake Capital owns 130,000 shares in Adobe Inc. (NASDAQ:ADBE), valued at $76.1 million, representing 10.94% of Parker’s 13F portfolio.
At the end of Q2, 89 hedge funds were bullish on Adobe Inc. (NASDAQ:ADBE), down from 107 in the previous quarter.
Here is what Richie Capital Group has to say about Adobe Inc. (NASDAQ:ADBE). in its Q2 2021 investor letter:
“Adobe Systems (ADBE – up 24.8%) – In the last 15 years, Adobe has transformed itself into a software behemoth, more than tripling its revenue since 2010. The company is famous for its namesake PDF-reader and photo-editing software Photoshop. However, ADBE sells a full suite of software products through a recurring subscription model. The company transitioned from selling boxed software to recurring subscriptions in 2013 and revenues have grown consistently since. The company achieved $13B in revenue in 2020 with 88% Gross Margins.”
You can also take a look at 10 Best Stocks to Buy According to Peter Lewis’ LFL Advisers and Top 10 Stock Picks of Terry Smith’s Fundsmith LLP.
