In this article, we discuss the 5 top tech stocks to buy today according to Brad Gerstner’s Altimeter Capital Management. If you want to read our detailed analysis of Gerstner’s history and hedge fund performance, go directly to the Top Tech Stocks to Buy Today According to Brad Gerstner’s Altimeter Capital Management.
5. Confluent, Inc. (NASDAQ:CFLT)
Gerstner’s Stake Value: $480.72 million
Percentage of Brad Gerstner’s 13F Portfolio: 3.61%
Number of Hedge Fund Holders: 30
Confluent, Inc. (NASDAQ:CFLT) produces cloud-native platforms for their clients to help their data-in-motion. It allows companies a real-time stream by connecting their applications. It was established in 2014, and the company’s market capitalization is $18.17 billion.
On August 5, 2021, Confluent, Inc. (NASDAQ:CFLT) released its second-quarter result 2021. The EPS of the company was -$0.31, which beat the estimate by $0.08. The company generated $88.4 million in revenue, up by 64% YoY, beating the analysts’ forecast by $11.48 million.
Brad Gerstner has 10.12 million shares in Confluent, Inc. (NASDAQ:CFLT) worth $480.72 million. It is a recent addition to the fund’s portfolio. Our data shows that the number of hedge funds having stakes in the company is 30 in the second quarter.
4. Peloton Interactive, Inc. (NASDAQ:PTON)
Gerstner’s Stake Value: $644.9 million
Percentage of Brad Gerstner’s 13F Portfolio: 4.85%
Number of Hedge Fund Holders: 67
Peloton Interactive, Inc. (NASDAQ:PTON) is a fitness equipment and media company that operates in the U.S. and was launched in 2012. The firm’s market capitalization is $30.618 billion.
Altimeter Capital Management has 5.2 million shares in Peloton Interactive, Inc. (NASDAQ:PTON) worth $644.9 million. The company was added to the firm’s portfolio in the first quarter of 2021. The fund increased its stake in the company by 512% in the second quarter of 2021. There was an increase in the hedge fund sentiment towards the company. Insider Monkey’s data shows that the number of hedge funds having stakes in the company is 67, compared to 64 in the previous quarter.
An investment management firm, Carillon Tower Advisers, mentioned Peloton Interactive, Inc. (NASDAQ:PTON) in its second-quarter 2021 investor letter. Here is what the fund said:
“Peloton Interactive operates a connected fitness platform offering live and on-demand classes allowing users to exercise at home. The firm’s shares were pressured in the quarter after Peloton announced a voluntary recall for both its legacy treadmill (Peloton Tread+) and its newly-launched base model treadmill (Peloton Tread). The issue surrounding the latter is somewhat troubling, as it appears it may be the result of an engineering flaw. This new treadmill offering was expected to be a key growth driver in the second half of 2021, and this development reduces our confidence in Peloton’s product pipeline. Therefore, we sold the stock.”
3. Uber Technologies, Inc. (NYSE:UBER)
Gerstner’s Stake Value: $1.23 billion
Percentage of Brad Gerstner’s 13F Portfolio: 9.23%
Number of Hedge Fund Holders: 135
Uber Technologies, Inc. (NYSE:UBER) was founded in 2009 and is a tech company offering services like ride-hailing, delivery, courier, and more.
Uber Technologies, Inc. (NYSE:UBER) released its second-quarter 2021 results on August 4, 2021. The declared EPS by the company was $0.58, beating the estimates of -$0.49. The revenue generated was $3.93 billion, which beats the forecast of $3.76 billion.
Gerstner holds 24.5 million shares in Uber Technologies, Inc. (NYSE:UBER) worth $1.23 billion.
RiverPark Funds mentioned Uber Technologies, Inc. (NYSE:UBER) in its second-quarter 2021 investor letter. Here is what it said:
“UBER was our top detractor for the quarter. Delivery growth remains strong, and ride-sharing has started to recover, though still down year over year (vs. pre-COVID results). Gross bookings grew 24% year over year, driven by 166% Delivery growth.
Despite the COVID disruption, UBER remains the undisputed global leader in ride-sharing, with greater than 50% share in every major region in which it operates. The company is also a leader in food delivery (64% of 1Q21 revenue), where it is number one or two in the more than 25 countries in which it operates. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its more than 100 million users (by comparison, Amazon Prime has 130+ million members) and penetrate new markets of ondemand services, such as grocery delivery, truck brokerage and worker staffing for shift work. Its New Verticals (non-food delivery such as grocery, convenience, and alcohol) business hit a $3 billion annualized run rate in March, up 77% quarter over quarter.
UBER, at its current $91 billion market capitalization, trades at 4x next year’s revenue from its two core businesses. Additionally, the company has substantial, unrecognized, value in its several nascent development businesses and another $13 billion in equity stakes in synergistic businesses around the world.”
2. Facebook, Inc. (NASDAQ:FB)
Gerstner’s Stake Value: $1.3 billion
Percentage of Brad Gerstner’s 13F Portfolio: 9.81%
Number of Hedge Fund Holders: 266
Facebook, Inc. (NASDAQ:FB) is a multinational technology company that was founded in 2004. The market capitalization of the company currently is $1.012 trillion.
Gerstner has 3.75 million shares in Facebook, Inc. (NASDAQ:FB) worth $1.3 billion. The fund invested in the company in the first quarter of 2018. The hedge sentiment towards Facebook, Inc. (NASDAQ:FB) increased in the second quarter of 2021. Our data shows that the number of hedge funds having stakes in the company is 257 in the second quarter of 2021, compared to 266 in the previous quarter.
First Eagle Investment Management mentioned Facebook, Inc. (NASDAQ:FB) in its second-quarter 2021 investor letter. Here is what the fund said:
“Leading contributors in the First Eagle Global Fund this quarter included Facebook, Inc. Class A. Facebook has continued to post impressive results for both revenue and active users of its traditional platforms. In the meantime, the social media giant continues to make progress on new initiatives—like Facebook Horizon (virtual reality) and Facebook Shops (e-commerce)—and maintains attractive monetization optionality around services like Messenger and WhatsApp.”
1. Snowflake Inc. (NYSE:SNOW)
Gerstner’s Stake Value: $6.03 billion
Percentage of Brad Gerstner’s 13F Portfolio: 45.38%
Number of Hedge Fund Holders: 70
Snowflake Inc. (NYSE:SNOW) was launched in 2012 and is a cloud-based data warehousing company. It has a market capitalization of $94.776 billion.
Snowflake Inc. (NYSE:SNOW) released its fiscal second-quarter 2021 results on August 25, 2021. The EPS of the company was -$0.04 compared to the estimate of $0.11. The company’s revenue for the quarter was $272.2 million, up by 104% YoY, beating the forecast by $15.4 million.
Altimeter Capital Management owns 24.951 million shares in Snowflake Inc. (NYSE:SNOW) worth $6.03 billion.
RiverPark Funds mentioned Snowflake Inc. (NYSE:SNOW) in its first-quarter 2021 investor letter. Here is what is said:
“We also established a position in Snowflake during the quarter. Snowflake offers cloud-based data storage and analytics, generally termed “data warehouse-as-a-service.” The data warehousing market—created by the massive, growing amount of user, customer, and account data and the need to search and analyze it—has historically stored its data on physical servers located on-premises. The cloud data platform market—storing data off-premises on cloud servers—is a relatively new $70 billion+ market. Significantly, incremental warehouse data capacity and renewals are expected to be driven by and to the cloud, with more than 75% of databases in the cloud by 2022.
Snowflake requires absolutely no infrastructure management from its users, is fully scalable for each customer, runs on Amazon, Microsoft, or Google cloud platforms, and most critically, Snowflake helps companies analyze their data. The company also has a unique, customer-aligned billing model based on usage. All of which has led to Snowflake being among the leaders of this highly fragmented market, posting 124% revenue growth last year. SNOW’s growth comes from the combination of more customers—which grew 73% last year—and customers buying more services—the company boasts an amazing 150%+ net customer retention. The company’s growing scale has also led to increasing gross margin and operating leverage, up 1,100 basis points and 8,200 basis points, respectively, over the past two years. The company has guided to FCF break-even this year, and with the company’s capital expenditure-light model—Snowflake uses the public cloud for hosting—we expect FCF to grow much faster than revenue growth, which we forecast to grow comfortably more than 50% per year for the next several years. Additionally, we have great confidence in the SNOW management team, which previously had an enormously successful run guiding one of our other core Cloud software holdings ServiceNow.”
You can also take a peek at 10 Best Tech Stocks to Buy Now According to Orkun Kilic’s Berry Street Capital and 9 Tech and Software Stocks to Buy According to Hamilton Helmer’s Strategy Capital.
