Latest news with #TigerGlobal
Yahoo
2 days ago
- Business
- Yahoo
Billionaire Chase Coleman Just Loaded Up on 4 Brilliant AI Stocks
Taiwan Semiconductor trades at a huge discount to the broader market. Nvidia and Amazon still have major growth levers they're pulling. Microsoft is delivering solid growth, but it may not be fast enough to justify its premium valuation. 10 stocks we like better than Nvidia › I monitor billionaires' investments in hedge funds, which gives me investment ideas and helps me determine whether my thoughts on a particular stock are still relevant. One of the funds I follow is Chase Coleman's Tiger Global Management fund, which made some major purchases of top artificial intelligence (AI) stocks during the first quarter. What stocks did Coleman and his team load up on? Let's take a look. If a fund has over $100 million in assets, it is required to divulge its end-of-quarter holdings to the Securities and Exchange Commission (SEC). Then, 45 days after the close of a quarter, that information is made available to the investing public through a Form 13-F. Although this information comes to investors a bit late, it still gives investors an idea of what the fund is doing, especially when compared to its holdings in previous quarters. During the first quarter, Tiger Global Management purchased a few big-time AI stocks. These included Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), and Taiwan Semiconductor Manufacturing (NYSE: TSM). All four of these stocks were already in Tiger Global Management's portfolio prior to Q1, so these represent further buys from Coleman and his team. Although we don't know exactly when the stocks were bought in Q1, we know that since the end of the quarter, each has risen in price. Are any of these four worth buying right now? If you examine each stock by its forward price-to-earnings (P/E) ratio, you can understand how highly each stock is valued relative to the others. The first thing that stands out is that all four of these stocks are still valued at the bottom end of their trading range throughout most of 2024. So, even though they could have been purchased for much cheaper prices just a few weeks ago, they're still attractive considering their range. The second thing that stands out is how cheap Taiwan Semiconductor is compared to the other three. Taiwan Semi's stock can be purchased for under 21 times forward earnings, which is significant because the S&P 500 trades for 22.1 times forward earnings. This is a lower-than-market multiple, yet Taiwan Semi is expected to deliver monster growth over the next five years. Management believes its AI-related revenue can increase at a 45% compound annual growth rate (CAGR), and its overall revenue CAGR will approach 20%. That's faster than the broader market's growth over the next five years (usually around 10% annually), making Taiwan Semiconductor stock a fantastic buy right now. The other three have a bit more work to do. They're trading at a premium valuation, so they will need to deliver market-beating growth. Nvidia is probably the easiest company to make this case for, as its GPU empire is still expanding to meet the massive computing needs of the AI arms race. Wall Street analysts expect 53% revenue growth in fiscal year 2026 (ending January 2026) and 24% next year, so Nvidia has the growth to justify its premium price tag. Amazon's projected revenue growth in 2025 and 2026 is 9% and 10%, respectively. This might immediately throw red flags for investors, as it's slower than the broader market's growth. However, Amazon isn't a revenue growth story; it's a margin expansion story. Over the past few years, Amazon's higher-margin segments have grown much faster than its lower-margin ones, allowing its margins to expand dramatically. This expansion isn't done yet, making Amazon an intriguing stock to consider buying. Last is Microsoft, which is expected to grow revenue at a 14% and 13% pace in 2025 and 2026, respectively, which is quite impressive. However, Microsoft doesn't have the same margin expansion story as Amazon, which slightly caps its return potential. While Microsoft has proven to be a strong and resilient business over the past few years, I don't think I'd want to own the stock as much as the other three. It's just as expensive as Amazon and Nvidia, yet it doesn't have quite the growth upside to justify the cost. Microsoft isn't a bad AI stock to own, but it doesn't have the same potential as the others, which is why it's at the bottom of my list for the four AI stocks that Tiger Global Management bought this quarter. 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 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Amazon, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Amazon, 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 Chase Coleman Just Loaded Up on 4 Brilliant AI Stocks was originally published by The Motley Fool
Business Insider
3 days ago
- Business
- Business Insider
Tiger Global explains its comeback after its 56% loss in 2022 — and why it sees itself in Rory McIlroy
As Tiger Global nears its 25th anniversary, the New York-based stockpicker is ready to move on from its recent past and return to its roots. The $50 billion manager, founded and run by billionaire Chase Coleman, posted back-to-back annual losses in 2021 and 2022, with the latter being a 56% swoon that brought about "enhanced risk management processes," the firm's investment team told investors in an April letter seen by Business Insider. The results since then: A two-year resurgence for one of the original Tiger Cubs, with gains of 28.5% and 24% in 2023 and 2024, respectively. The letter notes the firm was up 2.5% in its hedge fund in 2025's volatile first quarter. "Regular reviews of market and macro variables," including stress tests of each holding, have helped the firm get back on track and lets the investment team be "intently focused on playing our game — relying on the fundamental research process we have refined over decades, visualizing a wide range of outcomes, and prioritizing resilience across the companies we own," the letter states. The letter notes that the investment team has "stepped up the cadence of internal communication" and become "avid users" of OpenAI's Deep Research agent. Tiger Global is an investor in the AI pioneer. The firm compared its response to its poor stretch to the perseverance of pro golfer Rory McIlroy, the winner of this year's Masters tournament. McIlroy nearly blew a big lead before rallying to win in a do-or-die scenario after a lighthearted pep talk from his caddy. "Like Rory, we expect to make some double bogeys as investors," Tiger's team said, acknowledging that missteps and losses are part of the game. "But by relying on our research process and approaching every day with resilience and a prepared mind, we know we will make many more birdies and eagles over time and hopefully win some more championships along the way." With a "battle-tested" investment approach, the firm told LPs its process can handle the choppiness brought on by tariffs and other geopolitical tremors. "In markets like these, with high volatility and rapidly changing underlying fundamentals, we need to widen our bands on company performance and expect to be wrong on individual ideas from time to time," the letter states. For now, the investment team said that it is "head-down" on executing its process. "We know that doing the deep research to build the conviction to defend positions when they move against us is of paramount importance, so that we maximize returns from being right over the long run."
Time of India
4 days ago
- Business
- Time of India
Unlisted SME financier Oxyzo hits total assets of Rs 9,236 crore
Tired of too many ads? Remove Ads SME financier Oxyzo has scaled up assets to Rs. 9236 crore in financial year 2024-25, the Tiger Global and Alpha Wave backed company said in a statement. This is a 25% growth in its assets from the previous financial year. It has assets of Rs. 7364 crore in financial year 2023-24. Oxyzo is a part of OfBusiness financier which lends to micro, small and medium enterprises and emerging corporates across core sectors such as manufacturing and infrastructure said it had debt of Rs. 6,028 crore extended by large public and private sector banks, foreign banks, non bank finance companies, alternative investment funds and mutual posted total income of Rs. 1211 crore and profit after tax of Rs. 339 crore in financial year other shareholders include Norwest Venture Partners, Creation Investments and Z47.'Oxyzo's approach of combining prudent credit practices with sectoral depth has allowed us to support SMEs at scale. We've grown with prudence —focusing not just on scale, but on the quality of our book, our risk practices, and our deepening presence across core sectors of the Indian economy,' said Ruchi Kalra, the company's chief executive officer and co-founder.
Globe and Mail
4 days ago
- Business
- Globe and Mail
Billionaires Philippe Laffont, Chase Coleman, Terry Smith, and Stephen Mandel All Share the Same No. 1 Holding -- and It's Not Nvidia
For many investors, earnings season is the pinnacle of each quarter. It's a six-week period that provides an under-the-hood look at how well a majority of the most-influential public businesses driving the stock market higher or lower have performed. But it can be argued that the quarterly filing of Form 13Fs with the Securities and Exchange Commission (SEC) is just as important. 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 » A 13F is a required filing no later than 45 calendar days following the end to a quarter for institutional investors overseeing at least $100 million in assets under management. May 15 marked the deadline for money managers to file their 13F with the SEC. This filing details which stocks and exchange-traded funds (ETFs) Wall Street's brightest asset managers have been buying and selling. Even though 13F data can be stale for active hedge funds, they're nevertheless insightful in helping investors weed out which stocks, industries, sectors, and trends have the attention of the world's smartest fund managers. Based on first-quarter 13Fs, an interesting quirk emerged: One stock stood out as the largest holding for billionaires Philippe Laffont of Coatue Management, Chase Coleman of Tiger Global Management, Terry Smith of Fundsmith (aka, " Britain's Warren Buffett"), and Stephen Mandel of Lone Pine Capital. Four different investing styles converge on one stock -- and it's not Nvidia With thousands of publicly traded companies and ETFs to choose from, there's a statistically small probability that four prominent billionaire money managers are going to settle on the same stock as their respective fund's top holding. Things get even weirder when you realize that all four fund managers have differing investment styles: Philippe Laffont oversees $22.7 billion at Coatue Management and is prominently known for his focus on large-cap growth stocks and Wall Street's hottest trends, such as artificial intelligence (AI). Chase Coleman is managing roughly $26.6 billion at Tiger Global and also favors growth stocks, but with more of flair for small caps. Terry Smith is guiding the investment of $22 billion in capital at Fundsmith and is known as a diehard value investor, much like Warren Buffett. Stephen Mandel is managing close to $11.6 billion at Lone Pine and tends to put his fund's capital to work in a mix of growth stocks and companies exacting turnarounds. Most investors would probably be inclined to believe that AI colossus Nvidia (NASDAQ: NVDA) is the company all four billionaires have settled on as their top holding. Nvidia touches on Laffont's love for hot Wall Street trends; it's a growth stock that Coleman and Mandel can rally around; and its shares dipped to a forward price-to-earnings (P/E) ratio of 19 during the stock market's first-quarter swoon, which is its cheapest forward P/E in years (i.e., Terry Smith would possibly be interested). Furthermore, Nvidia offers a seemingly sustainable moat that top-tier money managers love to put their capital behind. Its Hopper (H100) graphics processing unit (GPU) and Blackwell GPU architecture are the leading options deployed in AI-accelerated data centers. No direct AI-GPU developer has come particularly close to matching the compute abilities or innovation timeline of Nvidia. But Nvidia isn't the correct answer. However, the stock in question is most definitely "Magnificent." The No. 1 holding of four prominent billionaires has gained 1,570% since its IPO Few companies check all the right boxes for billionaires Philippe Laffont, Chase Coleman, Terry Smith, and Stephen Mandel -- but social media maven Meta Platforms (NASDAQ: META), which is a member of the " Magnificent Seven" alongside Nvidia, fits the mold. Based on the latest round of 13F filings, Meta was the clear No. 1 holding by market value for all four billionaires and respectively accounted for: Coatue Management: 9.55% of invested assets Tiger Global Management: 16.18% of invested assets Fundsmith: 10.19% of invested assets Lone Pine Capital: 8.75% of invested assets Since its initial public offering (IPO) in May 2012, shares of Meta Platforms have increased by 1,570%, as of this writing. These gains have been made possible by four factors, all of which have probably played at least some role in making Meta the No. 1 holding for four highly successful billionaire asset managers. The first variable working in Meta's favor is its foundational social media platforms. Collectively, the company's family of apps, which includes Facebook, WhatsApp, Instagram, Threads, and Facebook Messenger, helped lure an average of 3.43 billion daily active people during March 2025. No other social media company comes remotely close to this figure, which affords Meta a superior level of ad-pricing power. Secondly, but building on this first point, Meta's operating performance and stock tend to ebb-and-flow with the health of the U.S. economy. Almost 98% of the company's net sales can currently be traced to advertising. Since the average U.S. economic expansion lasts considerably longer than the typical recession, Meta's ad-driven core is well-positioned to thrive over long periods. The third variable likely luring all four billionaire investors is Meta's addressable market for artificial intelligence. It's already deploying generative AI solutions into its ad platforms to allow businesses to tailor unique message(s) to users of its apps. But Meta is also investing aggressively in the future, which more than likely includes the company acting as a leading on-ramp to the metaverse -- the 3D digital world where people can interact with each other and their surroundings. CEO Mark Zuckerberg has a knack for holding back on monetizing new innovations until the time is right. The fourth and final reason Philippe Laffont, Chase Coleman, Terry Smith, and Stephen Mandel likely piled into Meta stock is the company's cash-rich balance sheet. Meta ended March with north of $70 billion in cash, cash equivalents, and marketable securities, and generated $24 billion in net cash from its operating activities through just the first three months of the year. It can invest in higher-growth initiatives and take risks that few other companies can match. With Meta Platforms expected to sustain a mid-teens sales growth rate, its forward P/E ratio of 22 remains quite attractive. Should you invest $1,000 in Meta Platforms right now? Before you buy stock in Meta Platforms, 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 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 $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor 's total average return is982% — 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 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 Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy.
Yahoo
6 days ago
- Business
- Yahoo
Tiger Global's Chase Coleman Just Dumped Datadog and Piled Into This Beaten-Down Payments Stock
Chase Coleman is a "Tiger Cub," one of the investors to work under Julian Robertson at Tiger Management before he launched his own hedge fund. Coleman has decades of experience investing in tech stocks. Coleman's fund recently turned its attention to a large payments stock that has been crushed by economic headwinds. 10 stocks we like better than Block › Hedge fund manager Chase Coleman has been investing in the tech sector for decades now. Known as a "Tiger Cub," Coleman worked at Tiger Management under famed investor Julian Robertson as a research analyst in 1997. Then in 2001, he went on to found Tiger Global, which manages $50 billion in total assets, including a roughly $26.5 billion public equities portfolio. Given Coleman's breadth of knowledge, particularly in the tech sector, it's worth keeping an eye on the stocks that Tiger Global is buying and selling. In the first quarter of 2025, Tiger Global dumped its stake in Datadog (NASDAQ: DDOG) and piled into beaten-down payments stock Block (NYSE: XYZ). Datadog is a cloud monitoring and security platform that enables businesses to keep an eye on their entire tech stack with real-time data and automation, making managing the complex task simpler. This effectively makes operating on the cloud much easier, letting more companies make the leap. It's a good niche to be these days, considering the risks that companies moving to the cloud face. Since going public in 2019, Datadog has performed well and its stock is up 220% (as of May 21). However, many tech stocks often find themselves a victim of their own success because their valuations climb rapidly, making their margin for error slimmer. Earlier this year, Datadog forecast first-quarter revenue and full-year revenue below what Wall Street analysts had expected, and the stock plunged. The stock also struggled through late March and early April, likely due to President Donald Trump's "Liberation Day." While Datadog is not affected by tariffs in the same way a company that produces physical goods might be, a broader economic slowdown would likely push off the ability of companies to take on expensive tech projects. In its first-quarter earnings report, Datadog raised its full-year projection, showing that its products and services are still very much in demand. Still, the stock is by no means cheap, meaning investment managers, particularly those looking 12 to 18 months out, really need to have full conviction if they are going to buy the shares. While Tiger Global was unlading Datadog, it purchased roughly 1.88 million shares in the consumer and merchant payments company Block. Block was viewed as a pandemic darling in 2020 and 2021, primarily because e-commerce and digital payments ballooned during the lockdowns. Additionally, consumers' savings increased due to government stimulus, low interest rates made borrowing easier, and people had plenty of money to spend from home with the economy more or less shut down. This translated into heavier payments volume for Block. But troubles this year hit hard and fast, pushing the stock down about 30% this year, well below the broader market's performance. In the first quarter, gross payment volume (GPV) at the company fell more than 8% from the prior quarter, while revenue in the company's Square merchant payment processing business and Cash App also fell from the prior quarter. Block's performance is heavily influenced by the economy, and concerns about weaker consumer spending and a potential recession are still quite relevant. Management also lowered its 2025 outlook, telling analysts to expect a 19% gross margin this year instead of the 21% it had previously predicted. "We saw changes to consumer spending as the quarter progressed that we believe drove the majority of our forecast miss," Chief Executive Officer Jack Dorsey wrote in quarterly shareholder letter. After the quarterly results earlier this month, Benchmark analyst Mark Palmer downgraded the stock from a "buy" rating to "hold," according to Barron's. Palmer said Block's Cash App should be resonating with lower-income customers right now as opposed to traditional bank accounts, given the economic uncertainty. "As such, we find stagnation in the number of active users of the app even more concerning than users' reduced spending on their Cash App Cards," he said in a research note. Square also faces stiffer competition from the likes of Toast and Shift4 Payments. Although Block has struggled, concerns about a recession have come down a bit since early May due to the increased likelihood of trade agreements and lower tariff rates, so some of the market's concerns are likely priced in to the stock. Furthermore, with Block's forward earnings multiple now below 20, it is much more likely that better-than-expected earnings or positive economic changes lead to a strong rebound. Before you buy stock in Block, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Block 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 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Block, Datadog, Shift4 Payments, and Toast. The Motley Fool has a disclosure policy. Tiger Global's Chase Coleman Just Dumped Datadog and Piled Into This Beaten-Down Payments Stock 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
