In this article, we’ll take a look at billionaire Steve Cohen’s top tech stocks.If you want to see more of billionaire Steve Cohen’s top tech stocks, head over to Billionaire Steve Cohen’s Top 5 Tech Stocks.
Billionaire Steve Cohen is the founder of Point72 Asset Management, a global asset management firm with discretionary long/short equity, systematic and macro investing strategies. Previously, Cohen founded a similar firm called SAC Capital, which used both fundamental and quantitative analysis-based strategies.
Thanks to the success of SAC Capital and Point72 Asset Management, Steve Cohen is one of the richest people in the world with a net worth of $12.8 billion.
Steve Cohen was born in New York and graduated from the Wharton School of the University of Pennsylvania with a degree in economics. Cohen later worked as an options trader at a brokerage firm called Gruntal & Co before founding SAC Capital Advisors in 1992. Given past strong returns, Cohen was able to charge some funds as much as 3 percent of assets and 50 percent of profits versus the traditional 2 percent of assets and 20 percent of profits.
As a result of the lawsuit, Cohen had to pay a fine and turn SAC Capital into a family office, renaming it Point72 Asset Management. In addition to his substantial stock holdings through Point72 Asset Management, Cohen also owns a majority stake in the New York Mets.
In terms of Point72 Asset Management’s 2022 performance, the fund is likely to rise this year, as the Bloomberg Billionaires Index shows Cohen’s net worth is up 16.4% year-to-date as of Nov. 19, 2022. Cohen’s $9.14 billion asset management firm, Point72 Asset Management, has a total net worth of $12.8 billion, according to Bloomberg.
Top Tech Jobs in Point72 Asset Management
As far as Point72 Asset Management’s 13F portfolio is concerned, Cohen doesn’t appear to hold blue-chip tech stocks in its top 10 tech stocks like some other top funds. Companies like Apple, for example, don’t even appear on Cohen’s top 10 tech stocks. Meanwhile, other stocks like Amazon don’t make up as much of the fund’s 13F stock portfolio as they do in the S&P 500.
Meanwhile, some stocks that have fallen sharply year-to-date have made it into Cohen’s top 5 tech stocks. Given that Point72 Asset Management is a trading company, it probably won’t hold a position for long.
With the S&P 500 down 17.3% so far this year, 2022 will be a challenging year for the broader market given that high inflation has led to aggressive rate hikes by the Federal Reserve. Many tech stocks are also down year-to-date as growth stocks suffer from the market’s decline. Further downside is likely if economic data misses expectations. Given the uncertainty, it might be a good idea for long-term investors to own a diversified portfolio of stocks across a number of different industries.
For our Billionaire Steve Cohn’s Top 10 Tech Stocks list, we’ve selected 10 tech stocks from Steve Cohen’s Point72 Asset Management’s top stock positions based on 13F filings for the end of the third quarter of 2022, And it ranks the funds based on their holdings in those stocks at the time.
Billionaire Steve Cohen’s Top 10 Tech Stocks
10. Oracle Corporation (NASDAQ:ORCL)
Point72 Asset Management’s equity value as of September 30: $183,651,000
Percentage of Point72 Asset Management’s 13F portfolio as of September 30: 0.73%
Point72 Asset Management more than doubled its stake in database and enterprise software giant Oracle Corporation (NASDAQ: ORCL ) in the third quarter, ending the quarter with a position worth more than $183 million. Oracle Corporation (NASDAQ: ORCL ) has performed well since Sept. 30, rising from $61.07 a share to $79.73 as of Nov. 19 as the broader market rallied. On October 21, KeyBanc’s Michael Turits upgraded the stock to “overweight” from “sector weight” and set an $80 price target. In terms of EPS estimates, analysts expect ORCL to earn $4.75 in 2022, $4.92 in 2023, $5.58 in 2024, and $6.33 in 2025.
9. Analog Devices, Inc. (NASDAQ: ADI )
Point72 Asset Management equity value as of September 30: $198,235,000
Percentage of Point72 Asset Management’s 13F portfolio as of September 30: 0.79%
Steve Cohen’s fund increased its stake in semiconductor maker Analog Devices, Inc. (NASDAQ: ADI ) grew 149% in the third quarter ended September, with an equity value of nearly $200 million. Although the company is facing headwinds due to slowing demand in the automotive and industrial sectors, analysts estimate that Analog Devices, Inc. (NASDAQ: ADI ) will earn $9.52 per share in 2023 and $9.52 per share in 2024. 10.31, compared with 2021 EPS of $6.42. If it can grow EPS as expected, Analog Devices, Inc. has a good chance. (NASDAQ: ADI ) could also boost its quarterly dividend to $0.76 per share.
8. Amazon.com (NASDAQ: AMZN )
Value of Point72 Asset Management’s equity as of September 30: $207,678,000
Percentage of Point72 Asset Management’s 13F portfolio as of September 30: 0.82%
As of the end of the third quarter, Point72 Asset Management’s stake was worth more than $207 million in e-commerce and cloud computing giant Amazon.com, Inc. (NASDAQ: AMZN ), which is owned by billionaire Steve Cohen The 8th largest 13F stock technology stock. Given how big Amazon.com, Inc. (NASDAQ: AMZN ) is, Point72 Asset Management is effectively underweight the stock as it makes up 0.82% of the fund’s 13F portfolio compared to Amazon.com Inc. . (NASDAQ: AMZN ) has a weighting of 4.05% in the S&P 500 Index. Growth at Amazon.com, Inc. is slowing due to rising inflation. (NASDAQ: AMZN). In terms of guidance for the fourth quarter, Amazon.com, Inc. (NASDAQ: AMZN ) expects sales growth of 2% to 8% year-over-year, a sharp slowdown from the 15% growth in the third quarter. The low-to-middle portion of the range still points to weak demand, even though Amazon factored in a 4.6% headwind from currency exchange rates.
Diamond Hill Capital Management commented on Amazon.com, Inc. (NASDAQ: AMZN ) in its second quarter 2022 investor letter,
Shares of Amazon.com Inc (NASDAQ: AMZN ) underperformed as valuations for the fast-growing company continued to compress in the second quarter. Amazon’s growth investments over the past two years have weighed on earnings amid weaker-than-expected consumer demand. However, we believe the company will be able to grow on its infrastructure investments over time. These investments overshadow the size of sustainable free cash flow and the business’s attractive valuation relative to its peers.
7. Microsoft Corporation (NASDAQ: MSFT)
Point72 Asset Management’s equity value as of September 30: $222,971,000
Percentage of Point72 Asset Management’s 13F portfolio as of September 30: 0.89%
Microsoft Corporation (NASDAQ: MSFT ) was No. 7 on our list of billionaire Steve Cohn’s top 10 tech stocks, and Point72 Asset Management’s stake was worth nearly $223 million at the end of the third quarter. Like Amazon, Point72 Asset Management is arguably underweight the stock, as Microsoft Corporation (NASDAQ: MSFT ) accounts for 0.89% of the fund’s 13F portfolio, while Microsoft Corporation (NASDAQ: MSFT ) ) has a weight of 5.6% in the S&P 500 Index. If the economy slows down more than expected, demand for new computers may not be as strong. As a result, demand for Microsoft’s computer operating systems may weaken.
6. Arista Networks (NYSE: ANET )
Point72 Asset Management’s equity value as of September 30: $223,286,000
Percentage of Point72 Asset Management’s 13F portfolio as of September 30: 0.89%
Point72 Asset Management increased its stake in computer networking maker Arista Networks, Inc. (NYSE:ANET) grew 5% in the third quarter to end the third quarter with more than $223 million in positions. On November 7, Credit Suisse’s Sami Badri raised his target price from $119 to $140 and maintained his “neutral” rating on Arista Networks, Inc. (NYSE:ANET) after attending the company’s 2022 Analyst Day. Shares of Arista Networks, Inc. (NYSE:ANET) are down just 5.75% year-to-date, while the Nasdaq has lost nearly 30% year-to-date.
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Disclosure: None. Billionaire Steve Cohen’s Top 10 Tech Stocks Originally published on Insider Monkey.