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Hedge Funds Favor These 5 Big Tech Stocks

3 years 9 months ago
Shares of big tech companies lost substantial value in the past year due to macro challenges (high inflation and rising interest rates). While inflation has moderated a bit, economic uncertainty and the Fed’s hawkish stance continue to pose challenges. Despite headwinds, hedge fund managers have accumulated shares of Alphabet ( NASDAQ:GOOGL ), Microsoft ( NASDAQ:MSFT ), Amazon ( NASDAQ:AMZN ), Nvidia ( NASDAQ:NVDA ), and Apple ( NASDAQ:AAPL ) in the last three months.  Using TipRanks’ Hedge Fund Trading Activity tool (it provides  hedge fund signals based on data from Form 13-F), let’s find out which of these big tech stocks hedge funds bought in bulk.  Big Tech: Which Stock Did Hedge Funds Buy the Most? Our tool shows that hedge funds bought more GOOGL stock than any other stock in the last three months. Per the tool,  hedge funds bought 129.4M shares of GOOGL. Several hedge fund managers increased their holdings in Google's stock. The list includes Bridgewater Associates’  Ray Dalio, Caxton Associates LP’s  Andrew Law, and PYA Waltman Capital, LLC’s  J. William Waltman, Jr. Besides for GOOGL stock,  hedge funds acquired 33.2M shares of Microsoft. Further, they  bought 26.3M shares of Amazon. During the same period,  hedge funds bought 9.6M shares of Nvidia. Furthermore, they increased their exposure in Apple stock  by adding 671.9K shares.  While hedge funds bought GOOGL stock in bulk, should investors follow? Is GOOGL a Buy, Sell, or Hold? Along with hedge fund managers, GOOGL stock also has positive signals from Wall Street analysts. It has received 32 unanimous Buy recommendations for a Strong Buy consensus rating on TipRanks. Moreover, these analysts’ average price target of $126.09 implies 44.37% upside potential.  Tigress Financial analyst  Ivan Feinseth sees the recent pullback in GOOGL stock as a “major buying opportunity.”  Feinseth is upbeat about the ongoing strength in GOOGL’s Cloud and Search segments. Moreover, he expects the company to benefit from its investments in AI (Artificial Intelligence). Overall, with positive indicators from hedge funds and analysts, GOOGL stock has a maximum Smart Score of “Perfect 10.” ( Stay abreast of the  best that TipRanks’ Smart Score  has to offer.)  Bottom Line Hedge fund managers are known to deliver market-beating returns. Thus, retail investors could benefit from following their trades. As for GOOGL stock, positive signals from hedge funds and analysts and the momentum in its core business make it an attractive long-term play.    Find out which  stock the biggest hedge fund managers are buying right now. Disclosure

Amazon Plans To Cut 18,000 Jobs, What To Expect?

3 years 9 months ago
Amazon’s stock (NASDAQ: AMZN) has lost approximately 51% in 2022 as compared to the 25% drop in the S&P500 index over the same period. However, at its current price of $85, the stock is trading 39% below its fair value of $139 – Trefis’ estimate for&nbs

A Fresh Face-Off on the Market Cap Game Show

3 years 9 months ago
Small cap, midcap, large cap, megacap...? How do these companies compare? It's not enough to know the share prices; you have to know the market caps! And that's why we play this game -- now with a new "throwdown rule." Play along with our guests, Motley Fool Chief Investment Offi

2 Growth Stocks to Buy Hand Over Fist in 2023

3 years 9 months ago
The start of a new year is an excellent time to add to your portfolio, with plenty of opportunities for growth ahead. A sell-off in 2022 has put numerous stocks on sale this January, including growth stocks that will likely provide significant gains over the long term.

Better Buy: Tesla vs. Apple

3 years 9 months ago
Tesla (NASDAQ: TSLA) and Apple (NASDAQ: AAPL) have very little in common except for the fact that both stocks are top 10 holdings in the Nasdaq Composite and have been exceptional investments over the past decade.

2 "Strong Buy" Software Stocks with Upside Potential for 2023

3 years 9 months ago
Despite their long-term tailwinds in the cloud, Microsoft ( NASDAQ:MSFT ) and Salesforce ( NYSE:CRM ) have felt the heavy impact of macro headwinds. As a recession becomes increasingly likely for 2023, it's hard to tell where the bottom will be for the two blue-chip behemoths. Regardless, Microsoft and Salesforce are two very high-quality firms that Wall Street analysts expect upside from, even though high-growth plays may continue to go out of favor amid climbing interest rates through 2023. I also see numerous scenarios where MSFT and CRM escape 2023 with gains. Let's see how the two "Strong Buy" software stocks stack up as they dive head-first into a potential recession. Microsoft ( NASDAQ:MSFT) Microsoft is now down around 35% from its all-time high hit just over a year ago. Believe it or not, Microsoft stock has held up better than the broader basket of FAANG names, some of which shed more than 70% of their value from peak to trough. Still, a 35% plunge is quite a hit to the chin, especially for such a well-run tech giant that has one of the best managers out there. Even the brilliant CEO Satya Nadella couldn't steer Microsoft clear of industry headwinds. Microsoft's cloud business Azure has been incredibly robust over the years, but a recent downgrade from UBS put it in the spotlight. Indeed, a 2023 recession could cause Azure growth to sink further. Regardless, don't expect Microsoft to take its foot off the brakes regarding forward-looking initiatives that could complement Azure at some point down the road. Eventually, Azure will find its feet once macroeconomic headwinds fade. In the meantime, Microsoft is focusing on initiatives it can control. Beyond the cloud, it has been investing considerable sums in gaming and AI. Microsoft continues to fight for the right to acquire game developer Activision Blizzard ( NASDAQ:ATVI ). The FTC seeks to block the deal, and though the move reduces the odds of a successful takeover by some amount, I still think a deal is very much plausible if the firm can prove its case in court. If it goes through, Microsoft will be an even more powerful force in gaming. As the metaverse comes to fruition over the next decade, Microsoft may be one of the frontrunners, thanks to the dominance of its gaming division. Whether or not Microsoft plays a role in metaverse hardware, it's clear that few firms can stack up against the firm on the software front. With OpenAI making noise amid its latest iteration of ChatGPT, Microsoft's $1 billion investment in the firm has proved wise. With a foot in the door of next-generation AI, it's clear that Microsoft is looking well ahead of a potential recession to tech trends that could lead it to grow for years after Azure runs out of gas. What is the Price Target for MSFT Stock? Microsoft has lots of support from Wall Street, with 25 Buys and three Hold ratings. The average MSFT stock price target of $288.69 suggests 28.35% upside from these levels. Salesforce ( NYSE:CRM) Looking ahead, Salesforce will trim its workforce and re-adjust its capital structures to minimize impediments to innovation and productivity. The latest decision to cut 10% of its workforce came as a shocker to many. The news caused a modest rally in CRM stock. Still, not everyone was bullish. The CRM stock rally reportedly surprised Big Short's Michael Burry, who expected a violent plunge after such news. Undoubtedly, Salesforce is in a tough spot, with CEO Marc Benioff on his own again as the sole CEO. The latest round of job cuts will help Salesforce hit a target of trimming costs by $3 billion to $5 billion. Such cuts could enhance margins but come at the expense of sales growth over the medium term. Salesforce faces huge unknowns in 2023, but at a 4.5 times price/sales ratio, it's one of the cheapest cloud software plays in the market. The stakes are high as the company looks to sail through an economic hurricane. What is the Price Target for CRM Stock? Wall Street loves Salesforce, with the average CRM stock price target of $194.71 implying 38.6% upside potential. The Takeaway Growth may not be in high demand as the Fed tightens further. However, I think both firms will be among the first to recover once any sort of dovish "pivot" is announced. It's hard to be more hawkish than the Fed is right now after recently insisting on "more evidence" of falling inflation before pulling the brakes on rate hikes. In any case, MSFT and CRM shares are terrific longer-term bets for investors willing to embrace further volatility en route to normalizing inflation and peak interest rates. Disclosure

3 Top Tech Stocks to Buy in January

3 years 9 months ago
The past year has not been kind to technology stocks. The tech-heavy Nasdaq Composite has fallen 33% over the last 12 months and is down 35% from its peak, putting the index deep into bear-market territory. Macroeconomic conditions have crushed valuations for many growth-dependen

Dow Movers: HD, DOW

3 years 9 months ago
In early trading on Friday, shares of Dow topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.0%. Year to date, Dow Inc registers a 7.1% gain.

Company News for Jan 6, 2023

3 years 9 months ago
Shares of Amazon.com, Inc. AMZN fell 2.4% after it announced increased layoff plans.Shares of Microsoft Corporation MSFT fell 3% on the broader tech slump.Tesla, Inc.’s TSLA shares fell 2.9% after December sales of its China-made electric vehicle dropped to a five-month l
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