In this article, we talk about the 10 tech stocks to buy now according to billionaire Steve Cohen. If you wish to skip our detailed analysis of Cohen’s hedge fund history and investment strategy, go directly to 5 Tech Stocks to Buy Now According to Billionaire Steve Cohen.
Billionaire Steve Cohen, founder, and partner at Connecticut-based Point72 Asset Management, manages more than $23.7 billion in assets under management at his hedge fund. His estimated net worth as of April 2022 is $17.4 billion.
Cohen obtained a degree in Economics from Wharton School of Business in 1978. He then went to work as a junior options trader for boutique investment bank Gruntal & Co. By 1984, he was in charge of his own trading group. Cohen’s trading generated $100,000 a day on average for Gruntal & Co. during his employment there, and it also enabled him to significantly increase his own wealth. In 1992, he established his hedge fund, SAC Capital Advisors.
Over the course of two decades, SAC Capital Advisors changed and broadened its investment strategy, utilizing a variety of tactics, including as long/short equity portfolios, fixed income, and worldwide quantitative techniques. For their investors, SAC generated 25% yearly returns on average from 1992 to 2013.
Like SAC in the past, Steve Cohen’s Point72 Asset Management uses a wide range of investment philosophies, ranging from holding stocks for long-term returns as well as selling shares on the open market in the hopes of the share price falling for a profit.
As of the second quarter of 2022, Point72 Asset Management owned positions in leading stocks such as Amazon.com, Inc. (NASDAQ:AMZN) and Meta Platforms, Inc. (NASDAQ:META), among others. The hedge fund initiated 614 new positions, made additional purchases in 356 stocks, sold out of 374, and reduced holdings in 292 stocks. The fund’s portfolio consists of stocks primarily from the Tech, Financials, Services, Healthcare, Basic Materials, and Others sectors. The top 10 holdings accounted for 10.92% of the overall portfolio.
Given the current volatility in the market, stocks could decline if the Federal Reserve continues to raise rates and economic data doesn’t meet expectations. Nevertheless, there is likely opportunity for long term investors who invest in quality stocks.
Steven Cohen of Point72 Asset Management
Our Methodology:
To identify the 10 tech stocks to buy according to billionaire Steve Cohen, we took the top 10 tech stocks by stake value from Steve Cohen’s Point72 Asset Management’s 13F portfolio at the end of Q2. We also provided the number of hedge fund holders in our database who had positions in the stock in the same quarter.
10 Tech Stocks to Buy Now According to Billionaire Steve Cohen
10. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Stake Value in Point72 Asset Management’s 13F Portfolio: $120.72 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.50%
Number of Hedge Funds: 87
Based in California, USA Advanced Micro Devices, Inc. (NASDAQ:AMD) is a multinational semiconductor company. As of August 2022, Steve Cohen’s Point72 Asset Management had stakes worth $120.72 million in Advanced Micro Devices, Inc. (NASDAQ:AMD).
In Q2 2022, Advanced Micro Devices, Inc. (NASDAQ:AMD) reported revenue of $6.55 billion and adjusted EPS of $1.05. Gus Richard, a Northland analyst, increased the price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $105 from $95 while maintaining an Outperform recommendation on the stock.
87 hedge funds tracked by Insider Monkey reported having bullish bets on Advanced Micro Devices, Inc. (NASDAQ:AMD) as of the end of the second quarter of 2022, with an aggregate stake value of $4.84 billion. Fisher Asset Management, with a position worth $1.92 billion, stood as the most significant shareholder of Advanced Micro Devices, Inc. (NASDAQ:AMD).
Here is what Carillon Tower Advisers had to say about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth-quarter 2021 investor letter:
Advanced Micro Devices, Inc. (NASDAQ:AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.
Alongside Arista Networks, Inc. (NYSE:ANET), ServiceNow, Inc. (NYSE:NOW), and Take-Two Interactive Software, Inc. (NASDAQ:TTWO), Advanced Micro Devices, Inc. (NASDAQ:AMD) is a tech stock held by billionaire Steve Cohen’s Point72 Asset Management at the end of the second quarter.
9. Bill.com Holdings, Inc. (NYSE:BILL)
Stake Value in Point72 Asset Management’s 13F Portfolio: $138.94 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.58%
Number of Hedge Funds: 46
The California-based company, Bill.com Holdings, Inc. (NYSE:BILL) offers automated, cloud-based software for financial processes.
According to the latest 13F filings, Point72 Asset Management had stocks worth $138.94 million in Bill.com Holdings, Inc. (NYSE:BILL) making it 0.58% of the portfolio. That ranks the stock #9 on our list of 10 tech stocks to buy now according to billionaire Steve Cohen.
In Q2 2022, Bill.com Holdings, Inc. (NYSE:BILL) reported revenue of $200.22 million and adjusted EPS of -$0.03. In the quarter, the company guided it would be profitable for the first time ever on a full year basis for fiscal 2023.
Many hedge funds like the stock. At the end of the second quarter of 2022, 46 hedge funds in the database of Insider Monkey held stakes worth $1.02 billion in Bill.com Holdings, Inc. (NYSE:BILL). When looking at the institutional investors followed by Insider Monkey, Abdiel Capital Advisors, managed by Colin Moran, holds the biggest position in Bill.com Holdings, Inc. (NYSE:BILL).
8. Amazon.com, Inc. (NASDAQ:AMZN)
Stake Value in Point72 Asset Management’s 13F Portfolio: $139.43 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.58%
Number of Hedge Funds: 252
Based in USA, Amazon.com, Inc. (NASDAQ:AMZN) is a multinational that specializes in online shopping, cloud computing, digital streaming, and artificial intelligence. Amazon.com, Inc. (NASDAQ:AMZN) is one of the leading tech companies with both scale and growth potential.
Given Point72 Asset Management’s stake of $139.43 million in the company, Amazon.com, Inc. (NASDAQ:AMZN) also ranks 8 in our list of 10 tech stocks to buy now according to billionaire Steve Cohen.
Among the hedge funds tracked by Insider Monkey, 252 funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) at the end of Q2 2022. As of Q2, 2022, Ken Griffin’s Citadel Investment Group owned 66.08 million shares in Amazon.com, Inc. (NASDAQ:AMZN). The hedge fund’s total stake in the company stood at over $7.01 billion, which accounted for 1.8% of its 13F portfolio.
7. Uber Technologies, Inc. (NYSE:UBER)
Stake Value in Point72 Asset Management’s 13F Portfolio: $149.02 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.62%
Number of Hedge Funds: 129
Uber Technologies, Inc. (NYSE:UBER) is an America-based multinational enables the use of technology to connect independent transportation service providers with passengers looking for rides. It also provides various modes of transportation, such as bicycles, scooters, and public transportation. Additionally available services include same-day delivery choices, freight services, business fleet services, and on-demand food delivery. The company operates in more than 70 countries globally. Steve Cohen’s Point72 Asset Management had shares worth $149.02 million in Uber Technologies, Inc. (NYSE:UBER).
Recently in September, Uber Technologies, Inc. (NYSE:UBER) and Nuro announced a multi-year partnership to employ Nuro’s autonomous, electric vehicles for food deliveries in the United States. In Q2, Uber Technologies, Inc. (NYSE:UBER) reported $8.07 billion in revenue and adjusted EPS of -$0.03.
As of Q2 2022, 129 of the 895 hedge funds tracked by Insider Monkey were bullish on Uber Technologies, Inc. (NYSE:UBER), holding shares worth $5.3 billion. Ken Fisher’s Fisher Asset Management was the largest shareholder with ownership of 24.5 million shares valued at $501 million.
6. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Stake Value in Point72 Asset Management’s 13F Portfolio: $161.01 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.67%
Number of Hedge Funds: 77
Headquartered in Texas, CrowdStrike Holdings, Inc. (NASDAQ:CRWD), is a cyber-security business that uses a cloud-native platform to protect identities, data, endpoints, and workloads in the cloud.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) reported $535.15 million in revenue in Q2 2022, and an adjusted EPS of $0.36. With the rapid evolution of cloud-native platforms, Jonathan Ruykhaver of Cantor Fitzgerald began his coverage of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) with an Overweight rating and a $240 price target.
Many hedge funds like the stock. At the end of the second quarter of 2022, 77 hedge funds in the database of Insider Monkey held stakes worth $4.10 billion in CrowdStrike Holdings, Inc. (NASDAQ:CRWD). When looking at the institutional investors followed by Insider Monkey, Tiger Global Management LLC, holds the biggest position in CrowdStrike Holdings, Inc. (NASDAQ:CRWD). Tiger Global Management LLC has $1.10 billion position in the stock, comprising 9.35% of its 13F portfolio.
Like CrowdStrike Holdings, Inc. (NASDAQ:CRWD), Arista Networks, Inc. (NYSE:ANET), ServiceNow, Inc. (NYSE:NOW), and Take-Two Interactive Software, Inc. (NASDAQ:TTWO) are also tech stocks held by billionaire Steve Cohen’s Point72 Asset Management at the end of Q2 2022.
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Disclosure. None. 10 Tech Stocks to Buy Now According to Billionaire Steve Cohen is originally published on Insider Monkey.