Insider Monkey recently analyzed billionaire Steve Cohen’s latest portfolio to see some of his top AI stock picks.
Since Oracle Corp (NYSE:ORCL) ranks 10th in our list of the 10 Best AI Stock Picks of Billionaire Steve Cohen, the stock deserves a detailed look.
Billionaire Steve Cohen is one of the few hedge fund managers who almost always dazzles with his outperformance and prescient bets. Cohen, who also owns The New York Mets, founded SAC Capital back in 1992, and since then through 2009 lost money only once. A Bloomberg report earlier this year said that Point72 Asset Management has been able to raise so much cash recently that it’s starting to decline external money. The fund has reportedly raised about about $12.8 billion since 2020.
Point72’s main fund returned about 11% in 2023, and 12% in the previous year.
Billionaire Steve Cohen’s Point72 Asset Management runs a highly diversified portfolio. As of the end of the March quarter, the portfolio’s net worth was over $41.2 billion, with tech stocks accounting for 17% of the total portfolio.
Unlike long-term value investors like Warren Buffett and Seth Klarman, Cohen moves with speed and adapts quickly. He’s been like this for decades. When he was in Wharton School of the University of Pennsylvania, he would often skip classes to watch stock movements at a local brokerage. He took pride in predicting stock movements based on their direction.
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Oracle Corp (NYSE:ORCL)
Steve Cohen‘s Q1’2024 Stake: $91,400,242
Billionaire Steve Cohen’s Point72 Asset Management owns a $91.4 million stake in Oracle Corp (NYSE:ORCL) as of the end of the first quarter of 2024. This is after the fund cut its stake in Oracle Corp (NYSE:ORCL) by a whopping 67% in the period. UBS analyst Nadia Lovell recently published a list of stocks expected to ride the boom in the AI industry where the analyst expects revenue to touch a whopping $420 billion in the next three years. Oracle Corp (NYSE:ORCL) is part of the list of stocks Lovell believes investors should get exposure to profit from these trends.
Madison Sustainable Equity Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its fourth quarter 2023 investor letter:
“Oracle Corporation (NYSE:ORCL) reported a disappointing second quarter due to supply constraints. Cloud revenue was below expectations as Oracle made planning decisions to accommodate some large-scale Oracle Cloud Infrastructure (OCI) clients that take longer to bring online. We continue to believe that Oracle has a unique position in Generative AI workloads and continue to like its position and strategy.”
Oracle Corp (NYSE:ORCL) ranks 10th in the list of the 10 Best AI Stock Picks of Billionaire Steve Cohen.
Click to see the complete list of 10 Best AI Stock Picks of Billionaire Steve Cohen.
If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. Is Oracle Corp (NYSE:ORCL) The Best AI Software Stock to Buy According to Billionaire Steve Cohen? was originally published on Insider Monkey