Warren Buffett Is Holding These 5 Tech Stocks Despite Selloff

2. StoneCo Ltd. (NASDAQ:STNE)

Number of Hedge Fund Holders: 35

1-Month Decline in Share Price as of May 17: 13.84%

StoneCo Ltd. (NASDAQ:STNE) offers financial technology solutions to merchants who conduct business via e-commerce, in-store, online, and mobile channels in Brazil. Berkshire Hathaway held on to his StoneCo Ltd. (NASDAQ:STNE) stake in Q1 2022, which consisted of 10.6 million shares worth over $125 million, despite selloff. 

On April 8, Cantor Fitzgerald analyst Josh Siegler initiated coverage of StoneCo Ltd. (NASDAQ:STNE) with an Overweight rating and a $15 price target. The analyst believes that while Brazilian inflation will remain high in 2022, he thinks the stock has overcorrected, and thinks the market may be overlooking StoneCo Ltd. (NASDAQ:STNE)’s capacity to control the financial expense impact through higher prepayment charges.

According to Insider Monkey’s Q4 data, 35 hedge funds placed long calls on StoneCo Ltd. (NASDAQ:STNE), compared to 37 funds in the last quarter. In Q1 2022, D E Shaw was one of the leading shareholders of the company, with 5.4 million shares worth $64.2 million. 

Here is what ClearBridge Investments Global Growth Strategy has to say about StoneCo Ltd. (NASDAQ:STNE) in its Q4 2021 investor letter:

“We also sold and trimmed several names in the emerging market and emerging growth areas, to manage risk and pursue growth companies with a better long-term risk/reward. These included Brazilian payments provider StoneCo. Having expected a rebound in their performance post a profit warning earlier in the year, rising interest rates in Brazil and investments in newly acquired companies increased operating costs and depressed earnings.”