5 software companies These 2 T

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Legendary investor

Julien robertson (Trades, Portfolio) is not only known for his leadership of Tiger Management, but also for having taken under his wing a group of proteges. These student investors, many of whom subsequently opened their own firms, are commonly referred to as “little tigers”.

Since they were mentored by the same investor, it’s no surprise that some of these guru fund managers have similar styles and even invest in some of the same stocks. An example of this is

Chase coleman (Trades, Portfolio), who now heads Tiger Global Management, and

Philippe Laffont (Trades, Portfolio), leader of Coatue Management.

At the end of the first quarter, the Aggregate Portfolio, a Premium feature of GuruFocus, revealed that the two gurus had positions in Snowflake Inc. (SNOW, Financial), Uber Technologies Inc. (UBER, Financial), Square Inc. (SQ, Financial), CrowdStrike Holdings Inc. (CRWD, financial) and Shopify Inc. (STORE, Financial), among other actions.

Snowflake

Coleman increased his snowflake (SNOW, Financial) by 27.26% in the first quarter, while Laffont increased its stake by 28.88%. The stock has a combined 7.77% weighting in their equity portfolios.

The Bozeman, MT-based company, which operates a cloud-based data warehouse, has a market cap of $ 74.34 billion; its shares were trading around $ 250.59 on Wednesday with a price-to-book ratio of 14.97 and a price-to-sell ratio of 87.08.

The price chart shows that the stock has fallen 1.35% since its IPO in September 2020.

GuruFocus rated Snowflake’s financial strength at 7 out of 10. In addition to adequate interest coverage, the Altman Z-Score of 45.93 indicates that the company is in good standing even though its Sloan ratio indicates poor earnings quality. .

The company’s profitability did not perform as well, scoring a 1 out of 10 thanks to negative margins and returns that underperform the majority of its competitors.

According to GuruFocus, Coleman has lost around 1.73% on its investment since the third quarter of 2020. Laffont has gained around 2.33% over the same period.

Among the gurus invested in Snowflake,

Warren Buffett (Trades, Portfolio) holds the largest stake with 2.12% of the outstanding shares.

Frank sands (professions, portfolio),

Baillie Gifford (trades, portfolio) and

Steve mandel (Trades, Portfolio) also hold the share.

Uber Technologies

In the first quarter, Coleman cut his Uber (UBER, Financial) by 24.78%, while Laffont reduced its stake by 36.93%. They have a combined portfolio weighting of 6.6% in the security.

The San Francisco-based rideshare company, which also offers food and parcel delivery services, has a market cap of $ 93.05 billion; its shares were trading around $ 49.49 on Wednesday with a price-to-book ratio of 6.82 and a price-to-sell ratio of 8.46.

According to the median price-to-sell ratio chart, the stock is currently overvalued.

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GuruFocus rated Uber’s financial strength at 4 out of 10. Due to the issuance of approximately $ 4.7 billion in new long-term debt over the past three years, the company has low interest coverage. . The low Altman Z-Score of 1.75 also warns of the risk of bankruptcy if it does not improve its liquidity.

The company’s profitability did not perform as well, scoring a 1 out of 10 due to negative margins and returns that underperform the majority of its industry peers. Uber has a low Piotroski F-Score of 2, which indicates that the operating conditions are in poor condition. The company has also experienced losses in operating profit as well as declines in earnings per share in recent years.

GuruFocus estimates that Coleman has gained 23.51% on its investment since the second quarter of 2019, while Laffont has gained around 13.57% over the same period.

With a 1.79% stake, Sands is Uber’s largest guru shareholder. Other great investor gurus include

Spiros Segalas (professions, portfolio),

Steven cohen (professions, portfolio),

Daniel loeb (trades, portfolio) and

Lee ainslie (trades, portfolio).

Square

Coleman increased his square (SQ, Financial) holding 88.49% in the first quarter, while Laffont reduced its stake to 36.76%. They have a combined portfolio weight of 5.23% in the security.

The San Francisco-based company, which provides payment processing services to merchants, has a market capitalization of $ 96.78 billion; its shares were trading around $ 212.54 on Wednesday with a price-to-earnings ratio of 299.35, a price-to-book ratio of 41.77 and a price-to-sell ratio of 8.21.

Based on the GF Value Line, which takes into account historical ratios, past performance and future earnings projections, the stock is currently slightly undervalued.

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Square’s financial strength has been rated 6 out of 10 by GuruFocus. Due to the issuance of approximately $ 3.5 billion in new long-term debt over the past three years, the company has low interest coverage. It does, however, have a solid Altman Z-Score of 8.13, indicating that it is in good standing even as assets are accumulating at a faster rate than income is growing. Return on invested capital has also fallen below the weighted average cost of capital, indicating that it struggles to create value as the business grows.

The company’s profitability was rated 3 out of 10 despite having margins and returns above half of its competitors. Square is also supported by a moderate Piotroski F-Score of 4, which suggests business conditions are stable, but has experienced operating income losses in recent years.

GuruFocus data shows Coleman has lost around 3.33% on its investment since Q4 2020. Laffont has gained around 90.08% since Q1 2016.

Catherine Wood (Trades, Portfolio) is the company’s largest shareholder guru with 2.41% of shares outstanding. Sables, Segalas, Mandel and

Ken fisher (Trades, Portfolio) also have important issues.

CrowdStrike

Coleman left his CrowdStrike (CRWD, Financial) unchanged during the first quarter, while Laffont reduced its stake by 53.45%. The gurus have a combined portfolio weight of 5.01% in the stock.

The Sunnyvale, Calif.-headquartered cybersecurity firm has a market cap of $ 48.61 billion; its shares were trading at around $ 215.31 on Wednesday with a futures price-to-earnings ratio of 777.91, a price-to-book ratio of 57.73 and a price-to-sell ratio of 47.58.

The median price-to-sell chart suggests that the stock is overvalued.

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GuruFocus rated CrowdStrike’s financial strength at 5 out of 10. Despite a high Altman Z-Score of 14.66, Sloan’s ratio indicates that the company has poor earnings quality.

The company’s profitability was rated 1 out of 10 due to negative margins and returns that underperform the majority of its industry peers. CrowdStrike is however backed by a moderate Piotroski F-Score of 4.

Coleman has gained around 135.3% on his investment since Q2 2019. GuruFocus data shows Laffont has gained around 225.17% since Q1 2020.

Among the gurus invested in CrowdStrike, Coleman owns the largest stake with 3.37% of its shares outstanding. Laffont holds the third stake with 0.82% of the outstanding shares. Segalas and

Jim simons (Retail, portfolio) ‘Renaissance Technologies also holds significant stakes.

Shopify

During the first quarter, Coleman increased its Shopify (STORE, Financial) by 167.03% while Laffont reduced its stake by 41.06%. They have a combined equity portfolio weighting of 2.89% in the share.

The Canadian e-commerce company has a market capitalization of $ 152.27 billion; its shares were trading at around $ 1,221.31 on Wednesday with a price-to-earnings ratio of 91.38, a price-to-book ratio of 16 and a price-to-sell ratio of 41.16.

According to the GF Value Line, the stock currently appears to be significantly overvalued.

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GuruFocus rated Shopify’s financial strength at 8 out of 10, thanks to a comfortable level of interest coverage and a strong Altman Z-Score of 54.4. ROIC also eclipses WACC, indicating good value creation. However, the business may become less efficient as assets accumulate faster than income increase.

The company’s profitability was rated 3 out of 10 despite being supported by strong margins and higher returns than the majority of its competitors. Shopify also has a moderate Pitroski F-Score of 5.

Since establishing the position in Q2 2015, GuruFocus estimates that Coleman has gained 20.72% on the investment. Laffont has gained around 68.98% since taking office in the second quarter of 2017.

With a participation of 4.72%,

Baillie Gifford (Trades, Portfolio) is the company’s largest shareholder guru. Mandel, Segalas, Sands and Wood also have significant positions in the stock.

Portfolio composition

Coleman’s $ 43.47 billion stock portfolio, which consisted of 120 stocks at the end of the first quarter, is heavily invested in the tech, consumer discretionary and communications services sectors. The New York-based guru’s hedge fund focuses on small-cap stocks and tech companies, especially startups.

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Laffont’s $ 18.24 billion equity portfolio, made up of 66 stocks as of March 31, is heavily invested in the technology and communications services sectors. The New York-based investor’s firm takes a fundamental analysis approach to investing with both long-short strategies and top-down stock selection.

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