Latest news with #DavidTepper
Yahoo
18 hours ago
- Business
- Yahoo
Analyst Explains Why He Sold Alibaba Group (BABA) – ‘Gave This Trade 90 Days to Work'
CNBC host and analyst Joe Terranova recently said in a program that he sold Alibaba Group Holding Limited (NYSE:BABA). 'Bought it February 12th at 118, sold half at 135 the end of March, sold out of it today completely. Gave this the trade basically 90 days to work. It's right back to where I bought it initially. I know everyone's going to say "Well David Tepper in it." But David Ter's not calling me to tell me how he's managing the position.' Appaloosa Management of David Tepper owns 9.23 million shares of Alibaba Group Holding Ltd (NYSE:BABA) as of the end of the first quarter. An e-commerce platform displaying a wide range of products to customers online. Loomis Sayles Global Growth Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q1 2025 investor letter: 'Alibaba Group Holding Limited (NYSE:BABA) is a leading China e-commerce and consumer-engagement platform provider, operating several businesses across commerce, technology, advertising, digital media and entertainment, logistics, payments, and local services. With over 40% of China's e-commerce transactions estimated to take place through its Taobao and Tmall marketplaces, we believe Alibaba's scale and brand would be difficult-to-replicate. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
18 hours ago
- Business
- Yahoo
Analyst Explains Why He Sold Alibaba Group (BABA) – ‘Gave This Trade 90 Days to Work'
CNBC host and analyst Joe Terranova recently said in a program that he sold Alibaba Group Holding Limited (NYSE:BABA). 'Bought it February 12th at 118, sold half at 135 the end of March, sold out of it today completely. Gave this the trade basically 90 days to work. It's right back to where I bought it initially. I know everyone's going to say "Well David Tepper in it." But David Ter's not calling me to tell me how he's managing the position.' Appaloosa Management of David Tepper owns 9.23 million shares of Alibaba Group Holding Ltd (NYSE:BABA) as of the end of the first quarter. An e-commerce platform displaying a wide range of products to customers online. Loomis Sayles Global Growth Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q1 2025 investor letter: 'Alibaba Group Holding Limited (NYSE:BABA) is a leading China e-commerce and consumer-engagement platform provider, operating several businesses across commerce, technology, advertising, digital media and entertainment, logistics, payments, and local services. With over 40% of China's e-commerce transactions estimated to take place through its Taobao and Tmall marketplaces, we believe Alibaba's scale and brand would be difficult-to-replicate. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. 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
Globe and Mail
3 days ago
- Business
- Globe and Mail
This AI Giant Is Among the Top 5 Holdings of Billionaires David Tepper, Philippe Laffont, and Stephen Mandel Jr. -- and It's Not Nvidia
Investors, including billionaires, have generated enormous returns by investing in Nvidia (NASDAQ: NVDA) in recent years. The artificial intelligence (AI) chip giant climbed more than 800% from the start of 2023 through the end of last year as demand for its products and services soared. And with the AI market forecast to reach beyond $2 trillion a few years down the road, it's likely Nvidia will continue to benefit. But it's important to remember that Nvidia isn't the only attractive AI bet to be found. In fact, right now, some of the world's top investors are favoring another AI giant over Nvidia. This particular player is among the top five holdings of billionaires David Tepper of Appaloosa Management, Philippe Laffont of Coatue Management, and Stephen Mandel Jr. of Lone Pine Capital. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » This company, like Nvidia, already has brought in billions of dollars in revenue thanks to AI -- and could win as the AI boom continues. Let's find out more. These billionaires like technology stocks First, it's important to note that these three billionaires have significant positions in technology stocks, with other such players among their top 10 holdings. So they clearly believe in the AI revolution and are setting themselves up to potentially gain as AI becomes more and more a part of our daily lives and the operations at businesses of every size. For example, Tepper and Mandel each have three Magnificent Seven stocks among their 10 most heavily weighted holdings, and Laffont has four. So, which company has caught the eye of these technology-focused investors? None other than AI powerhouse Amazon (NASDAQ: AMZN). As of the first quarter of the year, Amazon is the third biggest stock position in Tepper's $8.3 billion portfolio, the second-biggest in Laffont's $22 billion portfolio, and the third- largest in Mandel's $11 billion fund. Here are the details: Tepper holds 2,510,000 Amazon shares, and the stock represents 5.7% of the portfolio. Laffont holds 10,753,808 Amazon shares, and the stock represents 9.02% of his portfolio. Mandel holds 4,352,740 Amazon shares, and they represent 7.15% of his portfolio. This is according to the billionaires' 13Fs, filings that managers of $100 million or more must submit to the Securities and Exchange Commission on a quarterly basis. Is this AI player right for you? Now the question is: These billionaires clearly see Amazon as a fantastic AI investment, but is it right for you too? After all, though billionaires have demonstrated their investment expertise, some of their moves may not suit your investment strategy or comfort with risk. It's important to take these elements into consideration before diving in. You probably are most familiar with Amazon thanks to its e-commerce business. It's built an empire in the area, and one that extends around the globe. The operation helps the company generate billions of dollars in revenue year after year, and its extensive fulfillment network and popular subscription program Prime offer it a significant competitive advantage, or moat. But Amazon also is becoming a leader in AI, using the technology to streamline those e-commerce operations and even developing and selling AI products and services to customers through its Amazon Web Services (AWS) unit. In fact, due to Amazon's aggressive push into the AI space, AWS recently delivered a $117 billion annual revenue run rate. So Amazon already is generating significant growth from this hot technology. Well positioned for a win And since AWS is the world's leading cloud services provider, it's in the perfect spot to capture more and more business. As AWS customers develop AI projects, they have all that they need right at their fingertips on AWS -- from access to top chips like Nvidia's to a fully managed service that tailors popular large language models to a customer's needs. The AI buildout continues, and AWS is set to gain from this and from the next stages of AI, as customers apply AI to their businesses more and more. Meanwhile, Amazon offers a solid track record of earnings growth and has demonstrated its ability to manage turbulent times and go on to grow. For example, the company revamped its cost structure when higher inflation hurt earnings a few years ago and returned to growth within a year. All of this shows that Amazon is well positioned to benefit from the AI boom, but the stock also offers you security thanks to its well-established and profitable e-commerce and cloud businesses. And this means that, whether you're a cautious or aggressive investor, you may, like the billionaires, want to make Amazon one of your key AI bets. Should you invest $1,000 in Amazon right now? Before you buy stock in Amazon, 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 Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool has a disclosure policy.
Yahoo
4 days ago
- Business
- Yahoo
Billionaire David Tepper Bought More Shares of This Artificial Intelligence (AI) Stock That Could Join Apple, Microsoft, and Nvidia in the $3 Trillion Club by 2030
Fund manager David Tepper increased his stake in Meta Platforms in the first quarter. The company's AI-related work is already producing results, but the best is yet to come. Meta Platforms could beat the market in the next five years, even as it faces some obstacles. 10 stocks we like better than Meta Platforms › The artificial intelligence (AI) market continues to grow rapidly. With many companies competing for supremacy in the field, investors have numerous options to choose from today. It's not a bad idea to look to famous names on Wall Street for investing inspiration, either. Consider David Tepper, the billionaire founder of Appaloosa Management, a hedge fund. During the first quarter, Tepper and his team decreased the fund's stake in several high-profile AI players, including Amazon, Microsoft, and Nvidia. Meanwhile, positions in Facebook's parent company, Meta Platforms (NASDAQ: META), increased during the period. Here's why investors looking to cash in on AI should follow Tepper's lead and purchase shares of Meta Platforms. Meta Platforms' work in AI has had an impact on its financial results. The company successfully increased engagement on its suite of social media websites and apps by utilizing AI-powered algorithms. As its massive ecosystem of 3.4 billion daily active users continues to deepen, advertisers are increasingly seeking it out to place ads in front of their target audiences. That means higher ad revenue, Meta Platforms' bread and butter. However, the company's most important work in AI may well lie elsewhere. Meta Platforms developed and released Llama, a large language model (LLM), to the world completely free of charge. This decision might seem like a head-scratcher. But Meta Platforms' founder and CEO, Mark Zuckerberg, explained the importance of this open-source model. The company aims to attract talented AI developers to work on it, as it's free and easy to modify, and ultimately make it the leading LLM on the market. Meta Platforms is taking an almost democratic approach, one it believes will yield tangible results sooner rather than later. Llama powers Meta AI, an AI virtual assistant. As the company's work progresses, it will be able to use AI in even more ways to boost its user base and engagement. On the other side of the commerce equation, it will enable businesses to launch better-targeted, cost-efficient ads. We are still in the early innings of Meta Platforms' AI revolution, and the company isn't sparing any expense. It plans to invest hundreds of billions of dollars in AI infrastructure in the coming years. Meta Platforms' current market capitalization is $1.6 trillion. It needs to record a compound annual growth rate of 13.4% in the next five years to become a $3 trillion company. This is well above the market's long-term historical return. Further, it could encounter serious headwinds in the meantime. President Donald Trump's trade policies are spooking investors. Some fear it could lead to an economic downturn, something that would affect Meta Platforms' business. Companies tend to reduce their ad budgets when the economy tanks. So, Meta Platforms' trajectory over the next five years may not look anything like a straight line. But the company could still deliver the returns it needs to join the highly exclusive ranks of $3 trillion stocks as more of its AI work trickles down to the rest of the business. Revenue and earnings should maintain their upward trajectory, even in the face of a slowdown due to economic issues. Elsewhere, Meta Platforms will continue to ramp up new monetization opportunities. The company's massive user base presents numerous potential growth avenues. One thing it has been working on in the past few years is business messaging on WhatsApp. There will be others. Meta Platforms' revenue outside of advertising is barely meaningful compared to ad revenue, for now. But don't discount other opportunities at its disposal. Lastly, Meta Platforms shares don't look prohibitively expensive. The company's forward price-to-earnings ratio of 25.2 is above the average of 18.9 for the communication services sector, but Meta Platforms is worth the premium. There is ample upside left for the stock, and in the next five years, it could become one of those rare $3 trillion stocks. It's still a great time to invest in the company. Before you buy stock in Meta Platforms, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Meta Platforms wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. 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. Prosper Junior Bakiny has positions in Amazon, Meta Platforms, and Nvidia. The Motley Fool has positions in and recommends Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Billionaire David Tepper Bought More Shares of This Artificial Intelligence (AI) Stock That Could Join Apple, Microsoft, and Nvidia in the $3 Trillion Club by 2030 was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Billionaire David Tepper of Appaloosa Just Sold 5 Prominent Artificial Intelligence (AI) Stocks
Form 13Fs are required quarterly filings that allow investors to track the buying and selling activity of Wall Street's preeminent money managers. Appaloosa's billionaire chief David Tepper completely exited or substantially reduced his fund's stakes in five brand-name artificial intelligence (AI) stocks in the March-ended quarter. Headwinds to the AI revolution are beginning to mount. 10 stocks we like better than Nvidia › Wall Street runs on information, and investors rarely have to look too far for market-moving data. Everything from President Donald Trump's ever-changing tariff and trade policy to earnings season provides clues to investors about the current and future health of corporate America and the U.S. economy. But one of the most-telling of all data releases occurred roughly two weeks ago, on May 15. This was the deadline for institutional investors overseeing at least $100 million to file Form 13F with the Securities and Exchange Commission. Quarterly filed 13Fs detail which stocks, exchange-traded funds, and (select) options Wall Street's top-tier money managers have been buying and selling. Though Warren Buffett is the most well-known of all asset managers, he's far from the only billionaire investor known for their outsized returns or keen stock market insight. Another billionaire fund manager that's proven their chops on the investing front is David Tepper of Appaloosa Management. As of the end of March, Tepper was overseeing close to $8.4 billion in assets under management, which does account for a small number of options contracts. But the detail that stands out most about Tepper's first-quarter trading activity was his net-selling of artificial intelligence (AI) stocks. To be objective, Appaloosa's billionaire chief did do some buying in the AI space. He opened a new position totaling 130,000 shares in AI-networking specialist Broadcom, as well as added 60,000 shares of social media giant Meta Platforms and 20,000 shares of world-leading chip fabricator Taiwan Semiconductor Manufacturing to existing positions during the first quarter. But there's a night-and-day difference between the amount of selling Tepper undertook in the AI arena, relative to buying. Based on Appaloosa's 13F, Tepper sold shares of five prominent artificial intelligence stocks in the March-ended quarter: Advanced Micro Devices (NASDAQ: AMD): 1,200,000 shares sold (exited position) Intel (NASDAQ: INTC): 1,000,000 shares sold (exited position) Lam Research (NASDAQ: LRCX): 750,000 shares sold (60% reduction) Nvidia (NASDAQ: NVDA): 380,001 shares sold (56% reduction) Microsoft (NASDAQ: MSFT): 460,000 shares sold (47% reduction) It's quite possible this selling activity represents nothing more than simple profit-taking. Excluding Intel, whose stock has underperformed in a big way, shares of Nvidia, Microsoft, AMD, and Lam Research have all rocketed higher as the AI revolution has taken shape. With Tepper's Appaloosa averaging a holding period of around 29 months, he's proven a willingness to ring the register when his positions are in the green. The worry is that there may be more than just benign profit-taking and/or stop losses (in Intel's case) behind Tepper's aggressive net selling of AI stocks. On one hand, demand for AI-graphics processing units (GPUs) and AI solutions has been exceptionally strong. Nvidia's Hopper (H100) and Blackwell GPUs hold a seemingly insurmountable market share lead in AI-accelerated data centers, with AMD in the process of ramping up production of its Instinct AI-accelerating chips. Intel's central processing units (CPUs) are also playing a role in the rapid expansion of AI-data center infrastructure. While these three companies would appear well-positioned to benefit from the ongoing build-out of enterprise data centers, the economics of supply and demand might disagree. For Nvidia, nothing has been more important to its rapid sales and profit growth than AI-GPU scarcity. Demand overwhelming the supply of GPUs has allows Nvidia to place a huge premium on Hopper and Blackwell GPUs. But with AMD and other direct competitors ramping their production, and many of Nvidia's largest customers by net sales internally developing AI chips to use in their data centers, AI-GPU scarcity should meaningfully wane in the coming quarters. This is expected to weigh on Nvidia's pricing power, as well as AMD and possibly even Intel. It also has the potential to adversely impact the pricing power for semiconductor equipment companies like Lam Research, whose equipment plays an important role in packaging the high-bandwidth memory needed in AI-accelerated data centers. The other potential gray cloud for AI stocks that may have encouraged billionaire David Tepper to notably pare down Appaloosa's holdings in this hot trend is the role history has played for next-big-thing technologies and innovations. Since (and including) the advent of the internet in the mid-1990s, every next-big-thing trend has navigated its way through a bubble-bursting event early in its expansion phase. These bubbles form because investors consistently overestimate how quickly a new technology or innovation will gain utility and/or widespread adoption. Even with strong demand for AI hardware, as evidenced by Nvidia's rapid sales growth, most businesses deploying AI solutions haven't yet figured out how to optimize those solutions and/or generate a profit on their AI investments. Every game-changing technology needs time to mature, and AI isn't anywhere close to having reached the point of maturity. If the AI bubble were to burst, we'd see widespread weakness among the five prominent AI stocks Tepper completely exited or reduced in the March-ended quarter. Presumably, no company would be hit harder than Nvidia, which generated more than 90% of its net sales from its data center segment in the fiscal fourth quarter (ended late January). But even Microsoft wouldn't be immune. Though its high-margin software sales with Office and Windows would help insulate the stock from significant downside, growth for its high-margin cloud infrastructure service platform Azure, which incorporates generative AI solutions, would likely slow during an AI bubble-bursting event. With history being undefeated for more than three decades, billionaire David Tepper may be allowing these odds to partially guide his investment strategy. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *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 Intel and Meta Platforms. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, Lam Research, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short May 2025 $30 calls on Intel. The Motley Fool has a disclosure policy. Billionaire David Tepper of Appaloosa Just Sold 5 Prominent Artificial Intelligence (AI) Stocks was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
