Latest news with #DanLoeb
Globe and Mail
2 days ago
- Automotive
- Globe and Mail
Billionaire Dan Loeb Just Sold Meta and Tesla Stocks and Piled Into This Hot AI Stock Up 1,500% Over the Past 5 Years
The S&P 500 climbed back out of its year-to-date declines and is finally showing gains, up 2% so far this year. The future is uncertain, especially concerning tariffs, and investors are wary. But that doesn't mean investors are taking a break. Stocks continue to go up and down, with plenty of market beaters and plenty of market laggards; the S&P 500 is an average, after all, and some investors have pretty heated, and often opposing, views on different stocks. Take Tesla (NASDAQ: TSLA), for example. The Elon Musk-led electric vehicle (EV) powerhouse has certainly minted some millionaires, but it's facing increasing competition, among other issues, and it's down 27% this year -- including a double-digit loss on Thursday after CEO Elon Musk and President Donald Trump publicly sparred over social media. Nvidia (NASDAQ: NVDA) is also a polarizing stock, with the bulls and the bears split on just how big the company's future opportunity really is. At least one billionaire investor has made his current opinion clear. Hedge fund Third Point, run by billionaire Dan Loeb, has about 45 equity positions. In the first quarter, Third Point sold all of its Tesla and Meta Platforms (NASDAQ: META) stock, and it bought 1.45 million shares of Nvidia stock, worth $157 million, in addition to some other trades. Let's see what investors are thinking about these stocks today. Out of Tesla The Third Point hedge fund is described as an "opportunistic, event-driven approach to finding investments." While its portfolio typically only has around 45 stocks, they change frequently. That strategy will influence how it invests, and as with hedge funds in general, it has different goals than the average individual investor who isn't investing billions of dollars. The fund first bought Tesla stock in the 2024 third quarter and increased its stake in the fourth quarter, finally dumping it all in the 2025 first quarter. It's not hard to see why investors are worried about Tesla stock right now. The U.S. EV company has tons of new competition, and automotive revenue sank 20% from last year in the first quarter, triggering a 9% decrease in total revenue. Its new robotaxi initiative, which investors are counting on to breathe new life back into the company, may not be the savior the company needs to rebound. There are already other self-driving cars on the road or in the works, and it may take time until the technology is robust enough to be a real revenue booster. In addition, Tesla took a black eye when Musk was working as a special temporary federal employee and became one of Trump's closest and most controversial advisors. Musk has left the Department of Government Efficiency (DOGE) to return his focus on his businesses as Tesla saw deliveries and profits slump in the first quarter. But now that Musk is publicly sparring with Trump -- and the president is threatening to pull federal contracts from Musk's busineses -- Tesla stock is slumping yet again. Tesla stock is far from cheap, trading at 164 times trailing-12-month earnings. Tesla stock is up around 68% from the time Third Point bough it, and given its strategy, it looks like it could be a good time to pocket its winnings. Out of Meta Meta is the leader in social media and digital advertising, two growing industries. Digital advertising continues to replace print ads, and as a low-cost business, Meta is leveraging its unparalleled platforms to generate high profits. Revenue increased 16% year over year in the first quarter, and net income increased 35%. It has a superlative operating margin that was 41% in the first quarter. Meta stock isn't quite as polarizing as Tesla or Nvidia, with investors (fairly) uniformly seeing it as a good long-term play. It's up 18% in 2025, beating out the rest of the "Magnificent Seven" stocks. Third Point bought Meta stock in the 2023 third quarter, and it's up 132% since then. Although Meta is beating the market this year and still has massive opportunities, Loeb and his team might see this as a good time to take their earnings, especially if they were looking for capital to invest in other stocks being driven by current events, like Nvidia. Into Nvidia While Third Point made solid money from its investments in Meta and Tesla, it missed out on the massive gains in Nvidia stock, which is up 1,500% over the past five years. Clearly, Loeb thinks that's far from over, and with Nvidia stock down earlier this year and trading at a bargain price, it looked ripe for the picking. Nvidia stock plummeted in February when news came out about China's cheap DeepSeek artificial intelligence (AI) platform, but Nvidia maintained that it was good news for the entire AI industry, and that its best-in-class chips were only going to be in even greater demand. With two excellent earnings reports since then behind it, the market is reembracing the AI powerhouse. Revenue increased 69% year over year in the 2026 fiscal first quarter (ended April 27), and demand is strong for its newest Blackwell AI technology. It's a real feat to keep reporting such high growth when it already has $148 billion in trailing-12-month revenue, and it's also incredibly profitable, with $78 billion in trailing-12-month income and a 52% profit margin. As the unmatched leader in the industry, with constant innovation, Nvidia has massive opportunities up ahead as generative AI becomes a part of daily life and companies need its chips to deliver. As the cherry on top, Nvidia stock trades at only 25 times forward, one-year earnings. It's easy to see why Loeb thinks it's a good time to buy Nvidia today, and he grabbed it on a dip. Investors can still find value in buying Nvidia stock at the current price. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Yahoo
23-05-2025
- Business
- Yahoo
Billionaire Dan Loeb Sold His Fund's Entire Stake in Tesla and Is Piling Into Wall Street's Preeminent Artificial Intelligence (AI) Stock
Form 13Fs offer a way for professional and everyday investors to track which stocks Wall Street's smartest money managers purchased and sold in the most recent quarter. Third Point's billionaire chief dumped his fund's entire stake in Tesla in the first quarter -- and it may have to do with more than just profit-taking. Meanwhile, Loeb loaded up on the most direct beneficiary of the artificial intelligence (AI) revolution. These 10 stocks could mint the next wave of millionaires › The month of May has been packed with pivotal data releases. We've had no shortage of earnings reports from influential businesses, a Federal Reserve Open Market Committee meeting, and countless updates on tariff and trade policy from President Donald Trump and his administration. But amid this sea of data, perhaps nothing has been more telling than the filing of Form 13Fs with the Securities and Exchange Commission (SEC). No later than 45 calendar days following the end to a quarter, institutional investors overseeing at least $100 million in assets under management (AUM) are required to file a 13F with the SEC. This filing allows professional and everyday investors to see which stocks and exchange-traded funds (ETFs) Wall Street's leading asset managers bought and sold in the most recent quarter. May 15 marked the filing deadline for 13Fs detailing trading activity for the March-ended quarter. Though Warren Buffett is the most-popular of all money managers, he's far from the only billionaire fund manager known for outsized investment returns. Third Point's billionaire chief Dan Loeb also has quite the following on Wall Street. Loeb closed out the first frame of 2025 with $6.55 billion in AUM which was spread across 45 stocks. But what's particularly noteworthy about Loeb's investing style is his penchant for buying and selling high-growth and widely owned companies. Based on Third Point's latest 13F, Dan Loeb completely kicked North America's electric-vehicle (EV) kingpin Tesla (NASDAQ: TSLA) to the curb and chose to pile into Wall Street's preeminent artificial intelligence (AI) stock. Although Dan Loeb completely exited nine positions at Third Point during the first quarter, including social media colossus Meta Platforms, the sale of 500,000 shares of Tesla is what stands out most. The reason? Loeb initially purchased 400,000 shares of Tesla during the third quarter of 2024 and tacked on an additional 100,000 shares in the December-ended quarter. Between Jan. 1 and March 31, something changed. This "something" could very well be Tesla's soaring share price. In the wake of President Donald Trump's victory in November and CEO Elon Musk being designated as a "special government employee" for the Department of Government Efficiency (DOGE), Tesla stock very briefly doubled. The average stock in Loeb's portfolio has an average hold time of a little over 13 months, so he's not shy about locking in profits. But there may be more to this selling activity than meets the eye. To begin with, there's growing concern that Musk's involvement with DOGE and his numerous other companies and projects are detracting from Tesla's growth potential. Despite continued sales growth from Tesla's energy generation and storage operations, EV revenue plunged 20% in the first quarter from the prior-year period. Moreover, Tesla's vehicle margin has been trending lower for the last two years. Musk noted during his company's 2023 annual meeting that EV demand dictates pricing. A slew of sweeping price cuts for Tesla's fleet (Model's 3, S, X, and Y) confirms that competition is picking up and/or demand for EVs has waned. Even with steep price cuts, Tesla has struggled to keep its EV inventory levels from rising. Another concern is that Tesla's earnings quality is poor. Companies with first-mover advantages should be generating their profits from their products and services. More than half of Tesla's pre-tax income can be traced to automotive regulatory credits, which are given to it for free by governments, and interest income earned on its cash. Without automotive regulatory credits, Tesla would have reported a pre-tax loss in the March-ended quarter. Lastly, Dan Loeb might be out due to Elon Musk's numerous unfulfilled promises. For instance, Tesla's chief has claimed that Level 5 full self-driving is "one year away" for the last 11 years. He also expected 1 million robotaxis on American roadways "next year" in 2019. The cherry on top is that demand for Cybertruck has been well below the initial hype. If these unfulfilled promises are backed out of Tesla's valuation, its stock could have a long way to fall. On the other end of the spectrum, Third Point's 13F shows that Loeb opened 10 new positions during the first quarter. Though he did add a handful of high-yield dividend stocks, such as telecom titan AT&T and consumer health products company Kenvue, which isn't unexpected given the volatility we began witnessing in the stock market late in the first quarter, Loeb's eyebrow-raising purchase is premier AI stock Nvidia (NASDAQ: NVDA). The last time Third Point's billionaire investor held shares of Nvidia for his fund was the second quarter of 2023. He then sold what's now the equivalent of 5,000,000 shares of Nvidia during the third quarter of 2023, which takes into account Nvidia's 10-for-1 stock split in June 2024. During the first quarter of 2025, Loeb scooped up 1,450,000 shares, which are currently valued at almost $196 million. No company has been a more direct beneficiary of the AI revolution than Nvidia. Its Hopper graphics processing units (GPUs) and Blackwell GPU architecture are the undisputed preferred choice by businesses operating AI-accelerated data centers. Essentially, Nvidia's hardware is the brains behind generative AI solutions and the training of many large language models (LLMs). Nvidia has also been able to take full advantage of AI-GPU scarcity. Even with world-leading chip fabrication company Taiwan Semiconductor Manufacturing ramping up its chip-on-wafer-on-substrate capacity, Nvidia can't come close to meeting the full demand for its hardware. When demand for a good overwhelms supply, it's perfectly normal the price of that good to climb. Both Nvidia's Hopper and Blackwell GPUs are commanding a premium to competing chips, which has been a benefit to the company's gross margin. Even the CUDA software platform is doing its part to make Nvidia one of Wall Street's most-influential businesses. CUDA is the toolkit developers use to maximize the compute potential of their Nvidia GPUs, as well as build LLMs. More importantly, it's an anchoring tool that's helping to keep clients loyal to Nvidia's ecosystem of products and services. The final piece of the puzzle for Loeb looks to be Nvidia's valuation, which has become considerably more palatable. During the tail-end of March, Nvidia's forward price-to-earnings (P/E) ratio dipped to around 19, which appears quite inexpensive given the growth rate it's been able to sustain. But Nvidia stock isn't guaranteed to head higher. Every next-big-thing trend for more than three decades has worked its way through a bubble-bursting event early in its expansion. The simple fact that most businesses lack a well-defined AI game plan and aren't generating a profit on their AI investments signals that investors have, once again, overestimated the adoption rate and utility of another game-changing technology. Competition is a genuine concern, as well. As both external and internal competition ramps up, AI-GPU scarcity will diminish. Ultimately, this is bad news for Nvidia's AI-GPU pricing power and its margins. 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And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $341,791!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,365!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $644,254!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of May 19, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sean Williams has positions in AT&T and Meta Platforms. The Motley Fool has positions in and recommends Kenvue, Meta Platforms, Nvidia, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends the following options: long January 2026 $13 calls on Kenvue. The Motley Fool has a disclosure policy. Billionaire Dan Loeb Sold His Fund's Entire Stake in Tesla and Is Piling Into Wall Street's Preeminent Artificial Intelligence (AI) Stock was originally published by The Motley Fool Sign in to access your portfolio
Times
21-05-2025
- Business
- Times
Dan Loeb's Third Point Investors to merge with reinsurance firm
The billionaire hedge fund manager Dan Loeb faces another clash with shareholders after unveiling a plan to turn his London-listed investment trust into an insurer that has been branded an 'odious related-party deal'. Loeb's Third Point Investors trust revealed on Wednesday that it had agreed an all-share transaction to acquire Malibu Life Reinsurance from his New York-based hedge fund for about $68 million. The deal is being structured as a reverse takeover and will result in Malibu being listed on the London stock market in what Rupert Dorey, the trust's chairman, called 'an innovative and compelling transaction'. Investors who do not like the deal will be offered a way out by Third Point, which is planning a tender offer of at least $75 million for
Globe and Mail
20-05-2025
- Business
- Globe and Mail
These 2 Billionaires Are Still Betting on Nvidia Stock. Should You?
Valued at a market cap of over $3 trillion, Nvidia (NVDA) is a semiconductor giant that has delivered market-beating returns to shareholders in the last decade. Despite its outsized gains, analysts and investors remain bullish on the chip stock as Nvidia remains at the center of the artificial intelligence megatrend. Moreover, according to recent 13 F filings, billionaires such as Dan Loeb and George Soros have increased or opened new positions in NVDA stock. Let's see if you should buy the tech stock at its current valuation. Dan Loeb, who manages the hedge fund Third Point, opened a new position in Nvidia stock as of the end of the first quarter. George Soros of Soros Fund Management also opened a new NVDA stock position and purchased 57,753 shares. Is the Big Tech Stock a Good Buy Right Now? Nvidia continues to solidify its position as the driving force behind global AI infrastructure development. The chip maker's recent announcements highlighted strategic partnerships and technological breakthroughs across multiple sectors. Nvidia is scaling AI computing capabilities through high-profile collaborations with major cloud providers. Microsoft (MSFT) is deploying tens of thousands of Nvidia GB200 NVL72 rack-scale systems across Azure data centers. In Saudi Arabia, Nvidia has partnered with HUMAIN to build AI factories with a projected capacity of up to 500 megawatts, powered by several hundred thousand advanced GPUs over five years. The initial phase will deploy an 18,000 NVIDIA GB300 Grace Blackwell AI supercomputer with InfiniBand networking, positioning Saudi Arabia as an emerging AI powerhouse. Nvidia is also revolutionizing scientific discovery through agentic AI. Microsoft Discovery, unveiled at Build, integrates Nvidia's ALCHEMI and BioNeMo microservices to accelerate materials science and drug discovery research. In testing, this platform identified a novel data center coolant prototype in under 200 hours instead of months using traditional methods. For enterprise and consumer markets, Nvidia introduced a reimagined TensorRT for RTX AI PCs that delivers high-performance inference with 8x smaller package size for seamless AI deployment. This technology will be natively supported by Windows ML, providing developers both broad hardware compatibility and state-of-the-art performance. At COMPUTEX 2025, CEO Jensen Huang emphasized AI as essential infrastructure comparable to electricity and the internet. It introduced NVLink Fusion architecture for hyperscaler customization, announced multiple Blackwell deployments including DGX Spark and DGX Station personal AI supercomputers, and unveiled the NVIDIA AI Data Platform for intelligent storage infrastructure optimized for modern AI workloads. Nvidia Is Gaining Traction in Quantum Computing Nvidia continues to expand its technological leadership beyond traditional AI applications. In recent months, the semiconductor heavyweight has also gained traction in verticals such as quantum computing through strategic partnerships and platform development. In quantum computing, Nvidia is building the foundation for accelerated quantum supercomputers by integrating quantum hardware with state-of-the-art AI systems. The company's CUDA-Q platform is enabling researchers and institutions worldwide to advance quantum capabilities. Taiwan's National Center for High-Performance Computing recently announced a new ASUS-built supercomputer featuring NVIDIA HGX H200 systems with over 1,700 GPUs, GB200 NVL72 rack-scale systems, and next-generation Blackwell Ultra platforms, all connected via Quantum InfiniBand networking. Similarly, Japan's AIST has deployed ABCI-Q, the world's most powerful quantum-dedicated supercomputer. It integrates over 2,000 NVIDIA H100 GPUs with quantum processors. This system enables hybrid quantum-GPU workloads across multiple qubit modalities, accelerating development in quantum error correction and applications. On the healthcare front, Nvidia is partnering with Foxconn to develop smart hospital solutions addressing critical healthcare challenges like the projected global shortage of 4.5 million nurses by 2030. Their collaborative nursing robot, Nurabot, helps reduce clinician burnout by automating routine tasks such as medication transport. Is NVDA Stock Undervalued? Nvidia's growth story is far from over as the company is forecast to report free cash flow of $222 billion in fiscal 2030 (ending in January), compared to a free cash flow of $60.7 billion in 2024. If NVDA stock is priced at 25 times forward FCF, it should surge around 70% over the next four years. Out of the 44 analysts covering NVDA stock, 37 recommend 'Strong Buy,' two recommend 'Moderate Buy,' four recommend 'Hold,' and one recommends 'Strong Sell.' The average target price for Nvidia stock is $166, 25% above the current trading price.
Yahoo
19-05-2025
- Automotive
- Yahoo
Analyst Says Tesla (TSLA) ‘Massively Overvalued' Amid Notion of Elon Musk's ‘Magic Abilities'
Tesla (TSLA) shares were tanking on Monday as valuation concerns keep weighing on the stock. In a latest development, billionaire Dan Loeb's Third Point cut its entire stake in the company during the March quarter. Bradley Tusk, Tusk Venture Partners co-founder and managing partner, said in a recent program on CNBC that Tesla Inc (NASDAQ:TSLA) is 'massively overvalued' and talked about the impact of Elon Musk's distractions on the company: 'I think you'll have a chance to make some choices, right? I kind of get the notion that if you're him and you're thinking, "Why don't I just keep pushing the envelope, see how much I can do, see how much I can get away with, see how rich and famous I can become." And so I get why he's doing that. But let's be honest about Tesla—it is a company that is massively overvalued solely based on the pixie dust of the notion of Elon Musk's kind of magic abilities and retail investors believing in that. And he, to a certain extent, has to choose. If he wants to keep reaping the benefits of that, he needs to be at Tesla and be focused on Tesla. If he'd rather focus on Doge, or SpaceX, or xAI, or whatever else it is, that's fine. But what he can't have is the cake of way artificially high valuations for Tesla, um, and then eating it too—meaning doing everything but Tesla.' Tesla's valuation concerns aren't groundless. The company's EV sales are falling all over the world as the company faces challenges from competitors. Even if Elon Musk increases his focus to fix the company's problems, it would take a lot of effort to come out of the demand crisis. For example, in California, the largest U.S. market for electric vehicle adoption and sales, Tesla sales fell about 12% year over year in 2024, causing its market share to drop from 60.1% in 2023 to 52.5% in 2024. Was it because Californians are buying fewer EVs? No. Californians purchased more than 2 million electric cars during the year, almost double when compared to the past two years. Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q1 2025 investor letter: 'The underweight in Tesla, Inc. (NASDAQ:TSLA) contributed to performance in the first quarter of 2025. Tesla's automobile sales declined in the quarter, in part due to factory changeovers that were required for updates to the company's best-selling vehicle, the Model Y. This resulted in slower sales volume in the quarter. Competition from China's BYD is causing market share losses for Tesla in several non-U.S. markets. The CEO's position as an advisor to President Trump has damaged Tesla's brand image among a cohort of traditional electric vehicle buyers.' While we acknowledge the potential of TSLA our conviction lies in the belief that under-the-radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
