Latest news with #KenGriffin
Yahoo
3 days ago
- Business
- Yahoo
Billionaires Are Buying 2 Artificial Intelligence (AI) Stocks That Wall Street Analysts Say Can Soar Up to 240%
Several billionaire hedge fund managers bought shares of Palantir and/or Upstart in the first quarter -- stocks where certain analysts anticipate substantial upside. Palantir is successfully tapping demand for artificial intelligence (AI) with government and commercial customers, but the stock trades at a very expensive valuation. Upstart is generating attractive returns for lenders by helping them quantify credit risk with artificial intelligence, and the stock trades at a very reasonable valuation. 10 stocks we like better than Palantir Technologies › Large asset managers are required to disclose their equity holdings in quarterly Forms 13F. Investors can use those filings to track which stocks billionaires are buying. For instance, several hedge fund managers bought Palantir Technologies (NASDAQ: PLTR) and Upstart (NASDAQ: UPST) in the first quarter, as detailed below: Chris Rokos of Rokos Capital Management bought 55,809 shares of Palantir, starting a new position. Philippe Laffont of Coatue Management added 521,887 shares of Upstart, increasing his stake 150%. Ken Griffin of Citadel Advisors bought 902,486 shares of Palantir, increasing his position 204%. He also added 202,094 shares of Upstart, increasing his stake 618%. Paul Tudor Jones of Tudor Investment bought 149,191 shares of Palantir, increasing his position 573%. He also added 13,729 shares of Upstart, increasing his stake 28%. Importantly, certain Wall Street analysts see tremendous returns ahead for shareholders. Dan Ives at Wedbush Securities expects Palantir to be a $1 trillion company within three years, which implies 240% upside from its current market value of $294 billion. And Dan Dolev at Mizuho Securities recently set Upstart with a target price of $85 per share, which implies 85% upside from its current share price of $46. In its earliest days, Palantir built bespoke data analytics solutions for the U.S. intelligence community. But the company now focuses on developing modular software platforms for customers across the commercial and government sectors. Its core products (Gotham and Foundry) let customers integrate complex information and extract nuanced insights with machine learning models and analytical tools. Importantly, in 2023, Palantir introduced an adjacent Artificial Intelligence Platform (AIP) that adds support for large language models and natural language processing. In other words, AIP lets organizations infuse their data analytics workflows with generative AI. Forrester Research recently recognized Palantir as a technology leader in artificial intelligence and machine learning platforms. Palantir looked strong in the first quarter. Customer count increased 39% to 769, and the average spend per existing customer increased 24%. In turn, revenue rose 39% to $884 million, and non-GAAP (generally accepted accounting principles) earnings jumped 62% to $0.13 per diluted share. Management attributed the strong performance to demand for its AI platform. Wall Street estimates Palantir's adjusted earnings will increase at 31% annually through 2026. That makes the current valuation of 270 times earnings look outrageously expensive. Investors can look at this stock in two ways: On one hand, I think Dan Ives is right in saying Palantir will be a trillion-dollar company eventually. On the other hand, I also believe the stock is due for a sharp correction. Patient investors comfortable with volatility can reconcile those opposing views by purchasing a very small position today. And if the stock drops sharply in the coming months, they can consider buying more shares at cheaper valuations. Upstart has developed a lending platform that leans on artificial intelligence to help banks and credit unions quantify credit risk more accurately than traditional credit scores. Its business benefits from a network effect in that every data point -- whenever a borrower makes or misses a payment -- makes its machine learning models more effective. Upstart reported solid financial results in the first quarter, beating expectations on the top and bottom lines. Loan originations more than doubled, revenue increased 67% to $2.1 billion, and non-GAAP net income was $0.30 per diluted share, up from a loss of $0.31 per diluted share in the same quarter last year. Nevertheless, Upstart stock crashed after the earnings report, likely because investors are worried about the lending environment. Tariffs imposed by the Trump administration threaten to slow economic growth, perhaps to the point of recession. That would be bad news for Upstart because banks are usually more conservative about extending credit during periods of economic upheaval. However, that creates an opportunity for patient investors. Wall Street expects adjusted earnings to grow at 195% annually through 2026, which makes the current valuation of 140 times earnings look reasonable. Even if the consensus is overly optimistic, Upstart still lets lenders approve more borrowers at lower rates, which should drive demand for its platform in the long run. Importantly, Upstart-powered loans originated in the last eight quarters have beat the two-year Treasury yield by an average of 8 percentage points. That very attractive return should bring more lenders to the platform and help the company capitalize on its $3 trillion addressable market. So, while shareholders may not see 85% returns in the next year, given the uncertain economic environment, I expect the stock to perform well over the next five years. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies 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 $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — 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 Trevor Jennewine has positions in Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies and Upstart. The Motley Fool has a disclosure policy. Billionaires Are Buying 2 Artificial Intelligence (AI) Stocks That Wall Street Analysts Say Can Soar Up to 240% was originally published by The Motley Fool
Bloomberg
5 days ago
- Business
- Bloomberg
Wall Street Awaits Nvidia
Get a jump start on the US trading day with Matt Miller, Katie Greifeld and Sonali Basak on "Bloomberg Open Interest." A parade of retail results kicked off this morning, but it's all eyes on Nvidia today after the bell. Elon Musk says he's not happy with President Trump's Big, Beautiful Bill. Meanwhile, Trump explicitly guarantees Fannie and Freddie, and a new twist develops in the Japanese takeover of US Steel. Billionaire Ken Griffin keeps cashing in as Citadel Securities posts record profit and trading revenue in the first three months of the year. Ilana Weinstein, IDW Group CEO & Founder joins Bloomberg Open Interest to talk about the hedge funds talent wars. (Source: Bloomberg)
Globe and Mail
7 days ago
- Business
- Globe and Mail
Billionaires Are Buying an AI Index Fund That Could Turn $500 per Month Into $432,300
Institutional asset managers recently filed their latest Forms 13F, disclosures required by the SEC for anyone who owns at least $100 million in equity securities like stocks and index funds. Several hedge fund billionaires purchased the Invesco QQQ Trust (NASDAQ: QQQ) in the first quarter, as detailed below: Louis Bacon's Moore Capital Management purchased 31,000 shares. The Invesco QQQ Trust remains a relatively small position in the portfolio. Steven Cohen's Point72 Asset Management added 7,950 shares. The Invesco QQQ Trust remains a relatively small position in the portfolio. Ken Griffin's Citadel Advisors added 2.2 million shares. The Invesco QQQ Trust is now the third-largest position in the portfolio, excluding options. Israel Englander's Millennium Management added 474,300 shares. The Invesco QQQ Trust now ranks among the 25 largest positions in the portfolio, excluding options. Investors should know two things about the Invesco QQQ Trust. First, the index fund tracks 100 stocks in the Nasdaq Composite (NASDAQINDEX: ^IXIC), which dropped into market correction territory in the first quarter. Second, history says the index fund can turn $500 per month into $432,300 in 20 years. The Invesco QQQ Trust provides exposure to many technology companies likely to benefit from artificial intelligence The Nasdaq-100 tracks 100 of the largest companies listed on the Nasdaq Stock Exchange. The index is rebalanced quarterly and reconstituted annually. It excludes financial companies and is heavily weighted toward the technology sector. The Invesco QQQ Trust measures the performance of the Nasdaq-100. The 10 largest positions in the index fund are listed by weight below: Microsoft: 8.6% Nvidia: 8.2% Apple: 7.5% Amazon: 5.4% Alphabet: 4.9% Broadcom: 4.5% Meta Platforms: 3.5% Netflix: 3.2% Tesla: 3.1% Costco Wholesale: 2.8% Importantly, several companies listed above are likely to benefit from demand for artificial intelligence (AI) in the coming years. Microsoft, Amazon, and Alphabet are the three largest cloud computing platforms. Nvidia is the leading supplier of data center GPUs. Broadcom is the market leader in custom AI chips. Meta Platforms is using AI to improve engagement across its social media properties. And Tesla is developing robotaxis and autonomous humanoid robots. How the Invesco QQQ Trust can turn $500 per month into $432,300 The Invesco QQQ Trust advanced 1,250% during the last two decades, compounding at 13.9% annually. But if dividend payments are included, the index fund achieved a total return of 1,470%, increasing at 14.7% annually. Admittedly, anticipating an annual return of 14.7% may be overly optimistic. So, investors should introduce a margin of safety by assuming a more modest annual return of 12%. At that pace, $500 invested monthly in the Invesco QQQ Trust will be worth $105,200 in one decade and $432,300 in two decades. Importantly, some investors may wish to save more or less than $500 per month. The chart below details how different monthly contribution amounts will grow over time, assuming an annual return of 12%. Returns were determined using the compound interest calculator. Investors need two more pieces of information. First, the Invesco QQQ Trust has been very volatile throughout history because it is so heavily weighted toward the technology sector. In the last decade, the index fund fell more than 10% from its record high eight times, and it fell more than 20% from its record high four times. Second, the Invesco QQQ Trust has a modest expense ratio of 0.20%, so shareholders will pay $20 annually on every $10,000 invested in the index fund. Comparatively, the average expense ratio of U.S. index funds and mutual funds was 0.34% in 2024. Should you invest $1,000 in Invesco QQQ Trust right now? Before you buy stock in Invesco QQQ Trust, 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 Invesco QQQ Trust 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 $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%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 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. Suzanne Frey, an executive at Alphabet, 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. Trevor Jennewine has positions in Amazon, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool recommends Broadcom and 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.
Yahoo
7 days ago
- Business
- Yahoo
Billionaires Are Buying an AI Index Fund That Could Turn $500 per Month Into $432,300
In the first quarter, several hedge fund billionaires bought shares of the Invesco QQQ Trust, an index fund that provides heavy exposure to technology stocks. The Invesco QQQ Trust returned 14.7% annually in the last two decades, but even a more modest performance could turn $500 per month into $432,300 over the same period. The Invesco QQQ Trust has historically been a very volatile investment; it fell more than 10% from a record high eight times in the last decade. 10 stocks we like better than Invesco QQQ Trust › Institutional asset managers recently filed their latest Forms 13F, disclosures required by the SEC for anyone who owns at least $100 million in equity securities like stocks and index funds. Several hedge fund billionaires purchased the Invesco QQQ Trust (NASDAQ: QQQ) in the first quarter, as detailed below: Louis Bacon's Moore Capital Management purchased 31,000 shares. The Invesco QQQ Trust remains a relatively small position in the portfolio. Steven Cohen's Point72 Asset Management added 7,950 shares. The Invesco QQQ Trust remains a relatively small position in the portfolio. Ken Griffin's Citadel Advisors added 2.2 million shares. The Invesco QQQ Trust is now the third-largest position in the portfolio, excluding options. Israel Englander's Millennium Management added 474,300 shares. The Invesco QQQ Trust now ranks among the 25 largest positions in the portfolio, excluding options. Investors should know two things about the Invesco QQQ Trust. First, the index fund tracks 100 stocks in the Nasdaq Composite (NASDAQINDEX: ^IXIC), which dropped into market correction territory in the first quarter. Second, history says the index fund can turn $500 per month into $432,300 in 20 years. The Nasdaq-100 tracks 100 of the largest companies listed on the Nasdaq Stock Exchange. The index is rebalanced quarterly and reconstituted annually. It excludes financial companies and is heavily weighted toward the technology sector. The Invesco QQQ Trust measures the performance of the Nasdaq-100. The 10 largest positions in the index fund are listed by weight below: Microsoft: 8.6% Nvidia: 8.2% Apple: 7.5% Amazon: 5.4% Alphabet: 4.9% Broadcom: 4.5% Meta Platforms: 3.5% Netflix: 3.2% Tesla: 3.1% Costco Wholesale: 2.8% Importantly, several companies listed above are likely to benefit from demand for artificial intelligence (AI) in the coming years. Microsoft, Amazon, and Alphabet are the three largest cloud computing platforms. Nvidia is the leading supplier of data center GPUs. Broadcom is the market leader in custom AI chips. Meta Platforms is using AI to improve engagement across its social media properties. And Tesla is developing robotaxis and autonomous humanoid robots. The Invesco QQQ Trust advanced 1,250% during the last two decades, compounding at 13.9% annually. But if dividend payments are included, the index fund achieved a total return of 1,470%, increasing at 14.7% annually. Admittedly, anticipating an annual return of 14.7% may be overly optimistic. So, investors should introduce a margin of safety by assuming a more modest annual return of 12%. At that pace, $500 invested monthly in the Invesco QQQ Trust will be worth $105,200 in one decade and $432,300 in two decades. Importantly, some investors may wish to save more or less than $500 per month. The chart below details how different monthly contribution amounts will grow over time, assuming an annual return of 12%. Holding Period $200 Per Month $400 Per Month $600 Per Month 10 Years $42,100 $84,200 $126,300 20 Years $172,900 $345,800 $518,700 Returns were determined using the compound interest calculator. Investors need two more pieces of information. First, the Invesco QQQ Trust has been very volatile throughout history because it is so heavily weighted toward the technology sector. In the last decade, the index fund fell more than 10% from its record high eight times, and it fell more than 20% from its record high four times. Second, the Invesco QQQ Trust has a modest expense ratio of 0.20%, so shareholders will pay $20 annually on every $10,000 invested in the index fund. Comparatively, the average expense ratio of U.S. index funds and mutual funds was 0.34% in 2024. Before you buy stock in Invesco QQQ Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Invesco QQQ Trust 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 $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% 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. Suzanne Frey, an executive at Alphabet, 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. Trevor Jennewine has positions in Amazon, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool recommends Broadcom and 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. Billionaires Are Buying an AI Index Fund That Could Turn $500 per Month Into $432,300 was originally published by The Motley Fool 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
Bloomberg
26-05-2025
- Business
- Bloomberg
Citadel Securities Asia-Pacific Senior Manager Finney Exits Firm
Citadel Securities' Managing Director of Asia-Pacific Business Development Jonathan Finney has left Ken Griffin's market-making firm, people with knowledge of the matter said. Finney, who was also Asia-Pacific chief operating officer of its options business, exited earlier this month, said the people, who asked not to be identified discussing private information.
