Latest news with #MillenniumManagement
Globe and Mail
21-05-2025
- Business
- Globe and Mail
Tesla Stock vs. Amazon Stock: Billionaires Buy One and Sell the Other
Amazon (NASDAQ: AMZN) and Tesla (NASDAQ: TSLA) easily outperformed the S&P 500 (SNPINDEX: ^GSPC) last year, but the following billionaire hedge fund managers bought one and sold the other in the first quarter this year. Israel Englander of Millennium Management bought 229,253 shares of Amazon, increasing his stake 5%. It now ranks as his fourth-largest non-options holding. He also sold 855,104 shares of Tesla, reducing his stake 43%. Philippe Laffont of Coatue Management bought 83,599 shares of Amazon, increasing his stake by 1%. It now ranks as his second largest position. He also sold 531,754 shares of Tesla, trimming his stake 24%. Importantly, the trades took place in the first quarter, which ended about 50 days ago. But most Wall Street analysts still think investors should buy Amazon and avoid Tesla, as implied by the following target prices: 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 » Amazon's median target price of $237 per share implies 15% upside from its current share price of $206. Tesla's median target price of $307 per share implies 10% downside from its current share price of $342. Here's what investors should know about Amazon and Tesla. Amazon: The stock Englander and Laffont bought in the first quarter Amazon reported solid first-quarter financial results. Revenue rose 9% to $155 billion and net income jumped 62% to $1.59 per diluted share. But management gave cautious guidance because of ongoing concerns. Second-quarter operating income is expected to land between $13 billion and $17.5 billion, which implies growth between negative 11% to positive 19%. Wall Street expected operating income of $17.6 billion. The investment thesis for Amazon is simple: The company has a strong presence in three growing industries. It runs the largest online marketplace outside of China, it is the third-largest ad tech company worldwide, and Amazon Web Services (AWS) is the market leader in cloud computing as measured by infrastructure and platform services spending. Importantly, Amazon is leaning on artificial intelligence (AI) to improve revenue and margins across all three segments. For instance, the company is developing about 1,000 generative AI applications to improve various aspects of its retail operations, from front-end customer service to back-end coding. AWS has also designed custom chips for AI training that offer 30% to 40% better price performance than leading GPUs. However, investors should be aware tariffs could be a problem for Amazon, especially with respect to China. Brian Nowak at Morgan Stanley estimates 60% of third-party sellers have some China exposure, and that Chinese sellers represent a material source of advertising revenue. However, Nowak also believes Amazon's global supplier network will let the company continue to beat peers on price. Wall Street estimates Amazon's earnings will increase at 10% annually through 2026. That makes the current valuation of 33 times earnings look somewhat expensive. But Amazon beat the consensus estimate by 21% in the last six quarters and that trend could persist if the U.S. economy avoids a tariff-induced recession. Investors should feel comfortable buying a small position today. Tesla: The stock Englander and Laffont sold in the first quarter Tesla has seen a substantial decrease in demand across its three major geographies. Its market share in the first quarter plunged nearly 10% in the U.S. and Europe, and slipped more than 3% in China. Some blame lies with its aging lineup of relatively expensive electric cars, but CEO Elon Musk has also alienated potential buyers with polarizing political opinions. The investment thesis for Tesla is twofold. First, demand should improve as Musk spends less time working with the Department of Government Efficiency and refocuses on Tesla. Similarly, the company plans to produce more affordable models in the second half of 2025, and lower selling prices could create incentives for buyers. Second, Tesla has significant opportunity in self-driving cars and robots. The company will launch its first autonomous ride-sharing service in Austin, Texas, in June, followed by several other cities this year, according to Musk. Dan Ives at Wedbush Securities estimates robotaxis are a trillion-dollar market opportunity for Tesla. In addition, Tesla is building autonomous humanoid robots to tap what Musk believes will be a $10 trillion opportunity in the future. He also says the company has the "best team of humanoid robotics engineers" and "the most advanced humanoid robot" in the world. Tesla will have thousands of robots working its factories this year and may commercialize the product next year. Wall Street anticipates Tesla's earnings will increase at 14% annually through 2026. That makes the current valuation of 150 times earnings look absurdly expensive. In addition, the consensus estimate fell sharply in the last 90 days, which suggests at least some analysts think tariffs on imported auto parts will be a serious problem. However, the consensus also fails to capture the possible earnings acceleration as Tesla monetizes robotaxis and robots. Of course, that thesis may take several years to play out, and there is no guarantee Tesla will be successful. Hedge fund managers tend to focus on near-term catalysts, which may explain why Englander and Laffont sold shares. But patient investors with conviction in Musk's vision should hold the stock. Don't miss this second chance at a potentially lucrative opportunity 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 Stock Advisor, and there may not be another chance like this anytime soon. See the 3 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. Trevor Jennewine has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Amazon and Tesla. The Motley Fool has a disclosure policy.
Yahoo
18-05-2025
- Business
- Yahoo
Does Billionaire Israel Englander Know Something Wall Street Doesn't? He Sold a Quantum Computing Stock Analysts Say to Buy.
Billionaire Israel Englander sold 80% of his stake in Rigetti Computing in the first quarter, but every analyst following the company rates the stock a "buy." Rigetti Computing believes its full-stack approach to quantum computing offers the fastest, safest path to commercialization of cloud-based quantum services. Quantum computing will still be a very nascent technology in 2030, and Rigetti shares trade at an absurdly expensive valuation of 290 times sales. 10 stocks we like better than Rigetti Computing › In the first quarter, hedge fund billionaire Israel Englander of Millennium Management sold 1.2 million shares of Rigetti Computing (NASDAQ: RGTI), reducing his stake in the quantum computing stock by 80%. The sale represented a sharp turnaround from the prior quarter, when Englander purchased 1.4 million shares. His decision to sell stands out because all six analysts who follow Rigetti have a "buy" rating on the stock. The target prices range from $14 per share to $16 per share, implying upside of 21% to 39% from the current share price of $11.50. Put differently, not one analyst thinks the stock is overvalued at its current price. Does Israel Englander know something Wall Street doesn't? Classical computers manipulate binary digits (bits) to perform calculations and run operations, but quantum computers manipulate quantum bits (qubits), which can store exponentially more information. That's because bits can only be ones and zeroes, but qubits can be weighed combinations of ones and zeroes. That a qubit can simultaneously exist as one and zero is called superposition, and that quality lets quantum computers quickly solve certain problems that would take classical computers years. Quantum computers are particularly well-suited to situations with lots of variables interacting in complex ways, such as simulation and optimization problems. For instance, a quantum computer would be especially helpful in simulating molecules to accelerate drug discovery and material design. It would also be helpful in optimizing supply chains and logistics routes. But quantum computing will never replace all classical computing. "For most kinds of tasks and challenges, traditional computers are expected to remain the best solution," IBM said on its website. Rigetti builds and operates quantum computing systems. The company designed the first multichip quantum processor, and it offers cloud-based quantum computing services. Management says its full-stack approach spanning hardware and software "offers both the fastest and lowest risk path to building commercially valuable quantum computers." Rigetti reported disappointing first-quarter financial results that missed estimates on the top and bottom lines. Revenue plunged 51% to $1.5 million, and non-GAAP (generally accepted accounting principles) net income was -$0.08 per diluted share. The company also reported net cash used in operations of -$13.6 million. And Wall Street expects Rigetti to continue losing money through at least 2028. So, returning to the original question: Does billionaire Israel Englander know something Wall Street doesn't? Not necessarily. He bought shares when Rigetti caught fire in the fourth quarter. But when the stock rocketed to $20 per share early in the first quarter -- representing a 90-day gain of 2,500% -- Englander may have simply decided to take profits. Meanwhile, the six Wall Street analysts who follow Rigetti, all of whom have a "buy" rating on the stock, are probably counting on investors' willingness to pay a very high valuation multiple to own a prominent stock in the trendy quantum computing industry. But I think investors have gotten way ahead of themselves with Rigetti. The quantum computing market is projected to grow at 20% annually through 2030, but spending will total just $4.2 billion at that point, according to Grand View Research. Comparatively, the cloud computing market is also expected to grow at 20% annually over the same period, but spending will total $2.4 trillion. Put differently, the cloud computing market will still be about 570 times bigger than the quantum computing market by the end of the decade. Quantum computing will undoubtedly be an important technology in the future, but that future is still many years away, and Rigetti currently trades at 290 times sales. To put that in context, cloud computing company Cloudflare trades at 30 times sales, which itself is very pricey. But Rigetti is nine times more expensive. Investors should avoid the stock for now. Before you buy stock in Rigetti Computing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rigetti Computing 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 $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,385!* Now, it's worth noting Stock Advisor's total average return is 967% — 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 12, 2025 Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cloudflare and International Business Machines. The Motley Fool has a disclosure policy. Does Billionaire Israel Englander Know Something Wall Street Doesn't? He Sold a Quantum Computing Stock Analysts Say to Buy. was originally published by The Motley Fool
Zawya
16-05-2025
- Business
- Zawya
Institutional investors juggle bitcoin ETF holdings, US filings show
A number of high-profile asset managers cut their stakes in spot bitcoin exchange-traded funds amid a 12% drop in the cryptocurrency's price in the first quarter of 2025, according to recent regulatory filings. This marks a shift from previous quarters when asset managers had typically increased their holdings in spot bitcoin ETFs, as shown in previous quarterly 13-F filings with the Securities and Exchange Commission. Spot bitcoin ETFs, which made their market debut in January 2024, now paint a more complex picture. Hedge funds trimmed their holdings while some financial advisory firms and wealth funds boosted or rebalanced their positions. "What we witnessed in the first quarter was the collapse of the premium that people were paying for bitcoin futures, which had set up a very lucrative basis trade," said Matt Hougan, chief investment officer of Bitwise Asset Manager. Hedge funds seeking to profit from the spread between spot and futures prices could capture annualized yields in the region of 15%, Hougan said. "But that premium collapsed and reached its nadir around the end of March," he said. "So I'm not surprised to see hedge funds trim their holdings." Millennium Management LLC cut its holdings of iShares Bitcoin Trust ETF by 41% to 17.6 million shares and exited its position in the Invesco Galaxy Bitcoin ETF. It increased its stake in only two ETFs, boosting its holdings of the ARK 21 Shares Bitcoin ETF and the Grayscale Bitcoin Mini Trust. Jersey-based Brevan Howard trimmed its stake in the iShares ETF by 15.6%. The State of Wisconsin Investment Board, one of the earliest institutional investors to make a significant allocation to spot bitcoin ETFs in the first quarter of 2024, sold its entire six million share position in the iShares Bitcoin Trust in the first three months of this year. Meanwhile, Brown University made its first foray into cryptocurrency ETF ownership during the same period, acquiring a stake in the same ETF, worth $4.9 million at the end of March. Neither the state pension fund nor representatives from Brown University responded to requests for comment on their moves. Abu Dhabi's Mubadala sovereign wealth fund added to its holdings of the iShares ETF in the first quarter, bringing its total position to 8,726,972 shares, valued at $408.5 million. "What will be most important for me is whether, when all the data is finally in and we can analyze it, more investment advisory firms are stepping in," said Hougan. "That wave of adoption may be a slow-moving train, but it has forward momentum."
CNA
15-05-2025
- Business
- CNA
Institutional investors juggle bitcoin ETF holdings, US filings show
A number of high-profile asset managers cut their stakes in spot bitcoin exchange-traded funds amid a 12 per cent drop in the cryptocurrency's price in the first quarter of 2025, according to recent regulatory filings. This marks a shift from previous quarters when asset managers had typically increased their holdings in spot bitcoin ETFs, as shown in previous quarterly 13-F filings with the Securities and Exchange Commission. Spot bitcoin ETFs, which made their market debut in January 2024, now paint a more complex picture. Hedge funds trimmed their holdings while some financial advisory firms and wealth funds boosted or rebalanced their positions. "What we witnessed in the first quarter was the collapse of the premium that people were paying for bitcoin futures, which had set up a very lucrative basis trade," said Matt Hougan, chief investment officer of Bitwise Asset Manager. Hedge funds seeking to profit from the spread between spot and futures prices could capture annualized yields in the region of 15 per cent, Hougan said. "But that premium collapsed and reached its nadir around the end of March," he said. "So I'm not surprised to see hedge funds trim their holdings." Millennium Management LLC cut its holdings of iShares Bitcoin Trust ETF by 41 per cent to 17.6 million shares and exited its position in the Invesco Galaxy Bitcoin ETF. It increased its stake in only two ETFs, boosting its holdings of the ARK 21 Shares Bitcoin ETF and the Grayscale Bitcoin Mini Trust. Jersey-based Brevan Howard trimmed its stake in the iShares ETF by 15.6 per cent. The State of Wisconsin Investment Board, one of the earliest institutional investors to make a significant allocation to spot bitcoin ETFs in the first quarter of 2024, sold its entire six million share position in the iShares Bitcoin Trust in the first three months of this year. Meanwhile, Brown University made its first foray into cryptocurrency ETF ownership during the same period, acquiring a stake in the same ETF, worth $4.9 million at the end of March. Neither the state pension fund nor representatives from Brown University responded to requests for comment on their moves. Abu Dhabi's Mubadala sovereign wealth fund added to its holdings of the iShares ETF in the first quarter, bringing its total position to 8,726,972 shares, valued at $408.5 million. "What will be most important for me is whether, when all the data is finally in and we can analyze it, more investment advisory firms are stepping in," said Hougan.
Reuters
15-05-2025
- Business
- Reuters
Institutional investors juggle bitcoin ETF holdings, US filings show
May 15 (Reuters) - A number of high-profile asset managers cut their stakes in spot bitcoin exchange-traded funds amid a 12% drop in the cryptocurrency's price in the first quarter of 2025, according to recent regulatory filings. This marks a shift from previous quarters when asset managers had typically increased their holdings in spot bitcoin ETFs, as shown in previous quarterly 13-F filings with the Securities and Exchange Commission. Spot bitcoin ETFs, which made their market debut in January 2024, now paint a more complex picture. Hedge funds trimmed their holdings while some financial advisory firms and wealth funds boosted or rebalanced their positions. "What we witnessed in the first quarter was the collapse of the premium that people were paying for bitcoin futures, which had set up a very lucrative basis trade," said Matt Hougan, chief investment officer of Bitwise Asset Manager. Hedge funds seeking to profit from the spread between spot and futures prices could capture annualized yields in the region of 15%, Hougan said. "But that premium collapsed and reached its nadir around the end of March," he said. "So I'm not surprised to see hedge funds trim their holdings." Millennium Management LLC cut its holdings of iShares Bitcoin Trust ETF (IBIT.O), opens new tab by 41% to 17.6 million shares and exited its position in the Invesco Galaxy Bitcoin ETF (BTCO.Z), opens new tab. It increased its stake in only two ETFs, boosting its holdings of the ARK 21 Shares Bitcoin ETF (ARKB.Z), opens new tab and the Grayscale Bitcoin Mini Trust (BTC.P), opens new tab. Jersey-based Brevan Howard trimmed its stake in the iShares ETF by 15.6%. The State of Wisconsin Investment Board, one of the earliest institutional investors to make a significant allocation to spot bitcoin ETFs in the first quarter of 2024, sold its entire six million share position in the iShares Bitcoin Trust (IBIT.O), opens new tab in the first three months of this year. Meanwhile, Brown University made its first foray into cryptocurrency ETF ownership during the same period, acquiring a stake in the same ETF, worth $4.9 million at the end of March. Neither the state pension fund nor representatives from Brown University responded to requests for comment on their moves. Abu Dhabi's Mubadala sovereign wealth fund added to its holdings of the iShares ETF in the first quarter, bringing its total position to 8,726,972 shares, valued at $408.5 million. "What will be most important for me is whether, when all the data is finally in and we can analyze it, more investment advisory firms are stepping in," said Hougan. "That wave of adoption may be a slow-moving train, but it has forward momentum."
