Latest news with #Laffont
Yahoo
4 hours ago
- Business
- Yahoo
Billionaire Philippe Laffont Has 30% of Coatue's $22.7 Billion Portfolio Invested in 4 Artificial Intelligence (AI) Stocks -- and Nvidia Isn't One of Them
Quarterly-filed Form 13Fs allow investors to track which stocks Wall Street's brightest money managers have been buying and selling. Though Nvidia was once billionaire Philippe Laffont's top holding, he's been a persistent seller of Wall Street's artificial intelligence (AI) darling for the last two years. As of the end of March, a mix of four well-known AI hardware and applications companies made up roughly 30% of Coatue Management's invested assets. 10 stocks we like better than Meta Platforms › Important data releases happen with frequency on Wall Street. A seemingly endless parade of earnings reports, economic data releases, and policy changes from the Donald Trump administration, can make it easy for something important to get overlooked by investors. Arguably the most-telling of all data releases occurred three weeks ago on May 15. This marked the deadline for institutional investors overseeing at least $100 million in assets to file Form 13F with the Securities and Exchange Commission. A 13F provides investors with a snapshot of which stocks Wall Street's smartest money managers bought and sold in the latest quarter (in this case, the first quarter). While Warren Buffett is the most-followed asset manager on Wall Street, he's far from the only billionaire investor with a phenomenal track record. Coatue Management's Philippe Laffont, who closed out March with $22.7 billion in assets under management, has a propensity for making money in the stock market. Whereas Buffett is a staunch value investor, Laffont leans heavily into growth stocks and companies riding the latest technological waves, such as the artificial intelligence (AI) revolution. Although Laffont ended March overseeing 70 stocks, just four of these positions (all AI stocks) account for roughly 30% of Coatue's invested assets. Interestingly enough, AI leader Nvidia (NASDAQ: NVDA) isn't among these top AI assets, with Laffont persistently selling shares of Nvidia over the last two years. Though Nvidia was Coatue's largest holding from April 1, 2023 – Dec. 31, 2023, a combination of profit-taking and other possible nefarious factors has led to a notable reduction in this position. In four of the last five quarters, social media titan Meta Platforms (NASDAQ: META) has been billionaire Philippe Laffont's top holding. Coatue's more than 3.75-million-share stake equated to almost $2.2 billion in market value at the end of March. While Meta is wagering heavily on an AI future, the lion's share of its revenue and profits are currently derived from advertising. In March, Meta's family of apps, which includes Facebook, Instagram, WhatsApp, Threads, and Facebook Messenger, attracted an average of 3.43 billion daily active people. Since no other social platform comes particularly close to luring as many people on a daily basis, businesses are eager to advertise on Meta's social media sites. In turn, Meta often enjoys significant ad-pricing power. Mark Zuckerberg's company is already deploying generative AI solutions within its advertising platform. Giving businesses access to generative AI allows them to personalize their message(s) to specific users, with the hope of improving click-through rates. Meta Platforms also has the luxury of an enviable treasure chest. Its cash, cash equivalents, and marketable securities collectively topped $70 billion at the end of March, and the company's operations generated over $24 billion in net cash through the first three months of the year. Meta has the luxury of aggressively investing in AI, as well as slow-stepping the rollout of new services, thanks to its pristine balance sheet. The only quarter where Meta Platforms wasn't the No. 1 holding for Coatue Management since the start of 2024 (the fourth quarter of 2024) saw e-commerce kingpin Amazon (NASDAQ: AMZN) take hold of the top spot. Amazon has been a top-four holding for Laffont's fund for eight consecutive quarters. Coatue's billionaire chief is more than likely attracted to the rapid growth in Amazon's cloud infrastructure service platform, Amazon Web Services (AWS). According to estimates from tech analysis firm Canalys, AWS entered 2025 accounting for a 33% share of global cloud infrastructure service spending. Based on Amazon's first-quarter operating results, AWS is pacing $117 billion in annual run-rate revenue. Amazon hasn't been shy about incorporating generative AI solutions into AWS. It's also giving customers the tools to build and deploy large language models (LLMs). LLMs can be used to answer queries as virtual agents and summarize text, while generative AI can improve various marketing aspects for businesses. Amazon's other high-growth ancillary segments, which includes subscription services (e.g., Prime) and advertising services, are playing key roles in its growth, too. Winning exclusive sports streaming deals with the NFL and NBA should afford Prime plenty of subscription pricing power. Meanwhile, attracting billions of visitors on a monthly basis is great news for the company's advertising operations. The third largest holding in billionaire Philippe Laffont's fund for a second consecutive quarter is world-leading chip fabrication company Taiwan Semiconductor Manufacturing (NYSE: TSM), which is commonly referred to as "TSMC." Even though Coatue's 13F shows that roughly 2 million shares of TSMC were sold during the first quarter, it still accounts for close to 6% of invested assets. Taiwan Semi can be best thought of as a critical part of the AI-data center supply chain. Its chip-on-wafer-on-substrate (CoWoS) technology is necessary for the packaging of high-bandwidth memory needed in AI-accelerated data centers. TSMC is in the process of increasing its CoWoS capacity from around 35,000 units per month in 2024 to 135,000 wafers per month by 2026. This should go a long way to resolving the AI-graphics processing unit (GPU) scarcity that's allowed Nvidia to charge a veritable arm and leg for its Hopper and Blackwell GPUs. Laffont's sizable wager on Taiwan Semiconductor Manufacturing might also have to do with it building advanced-chip production facilities in the U.S. President Trump's threat of imposing tariffs on imports, including the possibility of semiconductor tariffs, is more of a moot point with TSMC investing in America. Something else worth noting is that TSMC is more than just AI chips. While advanced computing does comprise a majority of Taiwan Semi's net sales, it remains a key player in chip production for smartphones, Internet of Things devices, and next-generation vehicles. This revenue diversification might provide some buffer to Taiwan Semiconductor stock if an AI bubble forms and bursts. The fourth AI stock that, collectively with Meta Platforms, Amazon, and Taiwan Semiconductor Manufacturing, accounts for about 30% of Coatue Management's $22.7 billion in invested assets is Microsoft (NASDAQ: MSFT). Microsoft was Laffont's fifth-largest holding at the end of March, and it's been a top-five position in each of the last eight quarters. Similar to Meta and Amazon, Microsoft's artificial intelligence ties have to do with applying this game-changing technology to existing solutions. For instance, Azure is the world's No. 2 cloud infrastructure service platform by total spending, behind only AWS. Microsoft is aggressively deploying generative AI and LLM tools in Azure for its clients. In turn, it's seeing sales growth for Azure remain firmly in the double-digits (35% year-over-year growth on a constant currency basis for the March-ended quarter). Microsoft's legacy operations aren't slouches, either. Even though the growth heyday for Windows and Office is long gone, Microsoft's software still dominates on desktops and laptops. These sustainable, high-margin operating segments generate plenty of cash flow that the company can redirect toward cloud and AI initiatives, or perhaps Microsoft's bountiful capital-return program. Additionally, Microsoft is swimming in cash, which allows for an aggressive level of innovation and acquisitions that most companies can't match. It ended March with $79.6 billion in cash, cash equivalents, and short-term investments, while generating $37 billion in net cash from operations in just three months. 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 $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% 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 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. 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 Amazon and Meta Platforms. The Motley Fool has positions in and recommends Amazon, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. 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 Philippe Laffont Has 30% of Coatue's $22.7 Billion Portfolio Invested in 4 Artificial Intelligence (AI) Stocks -- and Nvidia Isn't One of Them was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
This AI Giant Is Among the Top 5 Holdings of Billionaires David Tepper, Philippe Laffont, and Stephen Mandel Jr. -- and It's Not Nvidia
Billionaires are betting on the AI revolution, and this particular company already is winning in the field. This tech player also has built a solid earnings track record over time. 10 stocks we like better than Amazon › 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. 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. 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. 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. 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. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 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 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. This AI Giant Is Among the Top 5 Holdings of Billionaires David Tepper, Philippe Laffont, and Stephen Mandel Jr. -- and It's Not Nvidia was originally published by The Motley Fool
Yahoo
22-05-2025
- Business
- Yahoo
Billionaire Philippe Laffont Has Cumulatively Sold 83% of Coatue's Nvidia Stake and Is Piling Into Wall Street's Hottest Artificial Intelligence (AI) IPO
The quarterly filing of Form 13Fs offers a way for everyday investors to track the buying and selling activity of Wall Street's leading money managers. Philippe Laffont has been a persistent seller of Nvidia stock for the last two years. Coatue's billionaire chief was an aggressive buyer of another artificial intelligence (AI) stock that's expected to 10X its sales by 2028. These 10 stocks could mint the next wave of millionaires › May has been a data-packed month for investors. Between earnings season, a steady flow of economic data releases from the government, and the Federal Open Market Committee's federal funds rate decision, there's been a lot to unpack. But arguably the most important data release of the quarter occurred one week ago, on May 15. This was the deadline for institutional investors with at least $100 million in assets under management (AUM) to file Form 13F with the Securities and Exchange Commission. A 13F provides investors with a way to track which stocks and exchange-traded funds (ETFs) Wall Street's most prominent money managers have been buying and selling. Though Berkshire Hathaway's Warren Buffett is the most followed of all asset managers, he's far from the only billionaire investor known to deliver outsized returns and move markets. For instance, billionaire fund manager Philippe Laffont of Coatue Management, who's overseeing $22.7 billion in AUM, has a rich track record of outperformance. Laffont is also known for his love of high-growth stocks -- especially those in the tech sector. Based on Coatue's first-quarter 13F, its billionaire chief continued to be a seller of the world's leading artificial intelligence (AI) stock, Nvidia (NASDAQ: NVDA), but absolutely piled into Wall Street's hottest AI-initial public offering (IPO) of the year. Taking into account that Nvidia completed a 10-for-1 forward split in June 2024, Coatue's position in Wall Street's AI darling peaked at 49,802,020 shares in the March-ended quarter of 2023. Over the last two years, Laffont has been paring down this position with regularity. During the first quarter of 2025, Laffont's fund dumped 1,460,653 shares of Nvidia stock, which represents a sequential quarterly decline of about 15%. But over the last eight quarters, Coatue's billionaire boss has overseen the sale of 41,256,185 cumulative shares of Nvidia, representing 83% of the fund's original stake. To be objective, Nvidia has done a lot of things right to get to where it is now. Its Hopper (H100) graphics processing unit (GPU) and successor Blackwell GPU architecture have run circles around the competition, in terms of compute ability. Nvidia's hardware maintains a near-monopoly-like share in enterprise AI data centers. Overwhelming demand for Nvidia's GPUs also boosted its pricing power. With the Hopper and Blackwell commanding a premium over all other GPUs, it's no surprise that Nvidia's gross margin surpassed 70%. But not everything is perfect for Nvidia -- and Laffont's trading activity suggests it. Despite Nvidia having superior hardware, competitive pressures are beginning to weigh on its margins. In addition to direct external competitors ramping up production of their AI-GPUs, many of Nvidia's top customers by net sales are internally developing chips they'll use in their own data centers. The cost and accessibility advantage of relying on internally produced AI solutions could realistically result in Nvidia losing out on valuable future data center real estate. The presence of new external and internal competition is also working to minimize the effect of AI-GPU scarcity. This has been Nvidia's primary competitive edge for two years, and it's the core reason its gross margin surged to as high as 78.4% one year ago. With its gross margin expected to decline, yet again, in the fiscal first quarter, it's clear that Nvidia's biggest advantage is withering. The other big-time concern for Nvidia shareholders is the likelihood of an AI bubble forming and bursting. Including the proliferation of the internet in the mid-1990s, there hasn't been a game-changing innovation in more than three decades that's avoided a bubble-bursting event early in its expansion. The fact that most businesses haven't optimized their AI solutions, and in many instances aren't generating a positive return on their AI investments, strongly signals that investors have (again) overestimated the early innings utility and adoption rate of a next-big-thing trend. With more than 90% of Nvidia's net sales coming from its data center segment in the fiscal fourth quarter of 2025 (ended Jan. 26, 2025), a bursting of the AI bubble would be disastrous for its stock. Although Laffont was a seller of a lot of high-growth tech stocks during the March-ended quarter, there was one artificial intelligence company that caught his attention in a big way -- and it only debuted as a public company days before the end of the first quarter! Arguably no stock was purchased more aggressively in the opening frame of 2025 by Coatue's billionaire chief than Nvidia-backed AI-data center infrastructure company CoreWeave (NASDAQ: CRWV). In its two business days as a publicly traded company in the first quarter (the company's IPO was Friday, March 28), Laffont scooped up 14,402,999 shares, which vaulted it to Coatue's 16th-largest holding by market value. The allure of CoreWeave for Laffont almost certainly has to do with the insatiable enterprise demand for AI computing resources. CoreWeave has purchased 250,000 Hopper chips from Nvidia, which is no small investment. In return, the company can lease out its AI infrastructure and services to clients, with the amount it generates in sales all dependent on things like demand, the services rendered, and the GPUs needed to complete a task. Coatue's billionaire money manager is likely also impressed with CoreWeave's expected growth ramp. Keeping in mind that consensus growth estimates for relatively early stage businesses are often fluid, CoreWeave's sales are projected to catapult from a reported $1.92 billion in 2024 to an estimated $19.66 billion come 2028. The company also announced a strategic deal with OpenAI that tacks on $11.2 billion in its revenue backlog. The numbers on paper absolutely paint an exciting picture for CoreWeave. But the real world doesn't always pan out as things do on paper. To begin with, CoreWeave's net losses are accelerating at the same staggering rate as its sales. As an early stage business, the company had to rely on debt financing to fund its GPU purchases. Last year, CoreWeave had nearly $361 million in net interest expenses. Its annual run in 2025 for net interest expense, based on its recently reported first quarter, is almost $1.06 billion! Investors should expect steep losses as CoreWeave's revenue ramp-up continues. Another sizable concern for CoreWeave, which might actually trump its rapidly widening net loss, is Nvidia's accelerated innovation cycle. Nvidia plans to bring a new high-powered AI chip to market roughly once per year. This means that CoreWeave's predominantly Hopper GPU-powered data centers could quickly become obsolete -- or at the very least, it could substantially weaken the company's pricing power for its services. Lastly, CoreWeave would almost certainly be adversely affected by an AI bubble forming and bursting. Until artificial intelligence matures as a technology, the threat of businesses paring back their AI infrastructure spending remains a tangible concern. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $351,127!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,106!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $642,582!* 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 Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Nvidia. The Motley Fool has a disclosure policy. Billionaire Philippe Laffont Has Cumulatively Sold 83% of Coatue's Nvidia Stake and Is Piling Into Wall Street's Hottest Artificial Intelligence (AI) IPO was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
20-05-2025
- Business
- Yahoo
A Billionaire Just Bought One of My Favorite Stocks. Should You Jump in Too?
While he's known more as a tech investor, billionaire Philippe Laffont recently added Philip Morris International to his portfolio. The company has the unique combination of being a growth stock in a defensive industry. Its valuation is still attractive. 10 stocks we like better than Philip Morris International › During the first quarter, billionaire investor Philippe Laffont of Coatue Management added one of my favorite stocks to his portfolio: Philip Morris International (NYSE: PM). The tobacco company has the rare combination of being a growth stock in a defensive industry. Laffont is best known for being a tech investor, and this can be seen in the makeup of his portfolio. Among his top-10 holdings are Meta Platforms, Amazon, Taiwan Semiconductor, Microsoft, Nvidia, Spotify, and Atlassian. However, he will venture into other industries and has large positions in utility Constellation Energy and industrial giant Eaton. So, while Philip Morris International is a departure from his typical technology investment, it's not completely out of his wheelhouse. During the first quarter, he bought just over $220 million worth of the stock. It was his fourth-largest purchase and second-largest new addition, behind a $555 million investment in data center developer CoreWeave. There are a number of reasons why Laffont may have invested in Philip Morris. First and foremost is that it has become a growth company led by its Zyn and Iqos smokeless products. Zyn is a flavored nicotine pouch that has taken the U.S. by storm. It is particularly popular among young adult males, but has gained traction with office workers and women. A large part of its appeal is its subtlety, as it doesn't have the smell of cigarettes or the mess of chewing tobacco. It's also promoted as an alternative to regular tobacco products and has gained a lot of social media buzz. The product has been a huge growth driver for Philip Morris, including in Q1 when Zyn U.S. shipment volumes surged 53% to 202 million cans. Some of that was from retail inventory restocking, but consumer demand for Zyn remains high. As such, Philip Morris increased its full-year Zyn guidance, with it now expecting to ship between 800 million and 840 million cans, up from a prior outlook of between 780 million and 820 million cans. Likewise, Philip Morris' Iqos heated tobacco product has been gaining popularity in international markets. The product uses a battery-powered device that heats tobacco sticks to produce a nicotine-containing aerosol without combustion. Like Zyn, it is considered an alternative to smoking. It's marketed as a premium product and has taken off in such markets as Japan. Last quarter, the company's heated tobacco units (HTUs) volumes, which includes Iqos, climbed nearly 12% to 37.1 billion units. The company said that in-market sales (those to end users) rose 9% in Japan and more than 7% in Europe, while it also began to see strong growth from cities outside of these markets. Philip Morris has also bought back Iqos' U.S. rights from Altria, and will look to broadly roll out the product in the U.S. once its newer Iluma system gets approved by the U.S. Food and Drug Administration. Currently, the company is piloting Iqos in Austin, Texas, with its older heating device. Iqos' entry into the U.S. could be a nice driver for Philip Morris. There would be no cannibalization of existing customers, as the company does not sell cigarettes in the country. One of the big benefits of both Zyn and Iqos is that they also have much better unit economics than traditional cigarettes. Philip Morris has said that Zyn has six times better product contribution levels than traditional combustible tobacco products, while Iqos has around 2 to 2.5 times. That means that both are more profitable for the company to sell than cigarettes. In addition to the strong growth coming from its smokeless portfolio, Philip Morris does not face the same issues as many other tobacco companies that sell cigarettes in the U.S. Cigarette volumes in the U.S. have been seeing a steep decline due to health concerns and the popularity of vaping and products like Zyn. Meanwhile, illicit Chinese products tend to dominate the U.S. vaping market since they are flavored, and the U.S. government has not been able to stop their inflow. Instead, Philip Morris has been able to produce modest cigarette volume growth in its international markets, where smoking tends to be more socially acceptable. This, combined with strong pricing power, is still leading to solid growth in its traditional cigarette business. At the same time, Zyn and Iqos are its growth drivers. While not entirely immune to a global recession, Philip Morris is about as recession-resistant as they come, thanks to the steady demand for its nicotine products. The company also benefits from having a global manufacturing network, which reduces its exposure to tariffs. For example, Zyn is manufactured in Kentucky, and the company is building a new facility in Colorado to meet growing demand. Philip Morris often operates factories close to its end markets, including major sites in Poland for Europe and the Philippines for Asia. At the same time, the stock is attractively valued. It's trading at a forward price-to-earnings (P/E) ratio of under 23 times, based on the analyst consensus for 2025, with a PEG (price/earnings-to-growth) ratio of under 0.35. Stocks with PEG ratios below 1 are generally considered undervalued. Given its defensive nature, along with its growth and valuation, Philip Morris remains one of my favorite stocks. As such, I think investors can follow Laffont's lead and be buyers of the stock around current levels. Before you buy stock in Philip Morris International, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Philip Morris International 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 $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% 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 12, 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. Geoffrey Seiler has positions in Philip Morris International. The Motley Fool has positions in and recommends Amazon, Atlassian, Constellation Energy, Meta Platforms, Microsoft, Nvidia, Spotify Technology, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Philip Morris International 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. A Billionaire Just Bought One of My Favorite Stocks. Should You Jump in Too? was originally published by The Motley Fool
CNBC
15-05-2025
- Business
- CNBC
Tiger Cub hedge fund Coatue unveils a big stake in popular AI startup IPO
Philippe Laffont's Coatue Management took a sizable stake in Nvidia-backed artificial intelligence infrastructure provider CoreWeave amid the first's highly anticipated March initial public offering. The hedge fund unveiled a $534 million holding in CoreWeave, which in late March had the biggest venture-backed tech IPO for a U.S. company since 2021. On Wednesday, the AI firm reported better-than-expected revenue in the company's first earnings release since going public. CoreWeave also called for faster growth than expected for this year. Laffont, one of the so-called Tiger Cubs who previously worked under the late Julian Robertson at Tiger Management, owned a slew of stocks tied to the AI boom that's been driving the stock market over the past year. Coatue's top holdings included some of the so-called Magnificent Seven stocks such as Meta Platforms , Amazon, Microsoft and Nvidia, while the hedge fund also had a significant stake in Taiwan Semiconductor. Also during the first quarter, the hedge fund built smaller stakes in Carvana , Skyworks Solutions , Pinterest , Tempus AI and Astera Labs .
