Billionaire Investment Trends: Purchases in One Tech Giant's Shares and Offloads in Another
Tesla and Amazon's Q3 Shifts: Hedge fund bigwigs like Louis Bacon, Israel Englander, Dan Loeb, and Chris Rokos made some significant moves in the third quarter, opting for Tesla shares and ditching Amazon. Let's break it down:
Tesla twirl:- Louis Bacon, from Moore Capital Management, purchased 25,000 shares, positioning himself further with a 19% hike. Simultaneously, he sold 616,475 shares of Amazon, decreasing his stake by 76%.- Israel Englander, of Millennium Management, bought 225,760 Tesla shares, amplifying his holdings by 51%. Still, he liquidated 7.9 million AMZN shares, markedly reducing his stake by 87%.- Dan Loeb, Third Point’s mastermind, invested 400,000 shares in Tesla, entering a new game. He also shed 1.4 million AMZN shares, slashing his position by 27%.- Chris Rokos, Rokos Capital Management's head honcho, got in on 100,000 Tesla shares, making it his initial buy. He stepped away from 755,165 Amazon shares, trimming his position by 39%.
It's important to remember that these trades were execution in Q3, with Q4 data not releasing until mid-February 20xx.
Tesla, the Bullish Bet:Battered by a 495,570 Q4 delivery deficit and an underperformance against the prediction, Tesla shares plummeted on Jan 2, 20xx. However, it rebounded the next day upon reports of robust China sales and a Canaccord upgrade. In the face of these setbacks, Tesla retains its lead in electric car sales through Nov 20xx, yet its market share has progressively dwindled in the US, Europe, and China.
What might salvage Tesla's prospects?- A $<30,000> Model Q sub‐launch in H1 2025- A potential 1,000x improvement in FSD software this year, which Tesla aims to roll out as an unsupervised version in California and Texas in 2026.- A roll‐out of an autonomous ride‐sharing service in California and Texas in 2025, with the possibility of extending to other states later.
Elon Musk believes this shift could skyrocket Tesla's gross margin to 70% or higher. Wall Street expects Tesla's earnings to jump 26% within the following 4 quarters. Whether its 164x P/E seems over‐the‐top is subject to debate. However, analyst Dan Ives remains optimistic, likening Tesla to the "most undervalued AI name in the market".
I maintain that Tesla's Q3 billions were betting on Donald Trump's president election win. Selling positions in Q4 is more than likely, especially since the stock's volatile post-election growth curve. Nonetheless, investors believing in Tesla's mobility and transportation industry disruption should hold long‐term positions.
Amazon, the Sellers:Amazon boasts three growth engines: e-commerce, digital advertising, and cloud services. The e-commerce giant's AI integration supports its merchants with an extensive logistics network! Machine learning models trained on customer data optimize inventory and delivery routes, increasing sales on the platform and enhancing logistics efficiency.
As the third-largest ad tech company, Amazon lands in the top 3, hot on the heels of Meta Platforms. Amazon's digital marketing services continue to see rapid increase, setting it up for a possible seat at Meta's table before 2030. Its AWS remains the largest and most dominant platform, ruling its industry with a 31% market share.
Wall Street predicts AMD's adjusted earnings to grow 26% over the next 4 quarters, making the current valuation reasonable at 46x P/E. Amazon's industry domination and AI integrations continue to impress the market, while investor sentiments remain mixed.
Sources:[1] The Smartest Investing Minds Are Buying These 2 Stocks in the Third Quarter, Yahoo Finance, 20xx[2] Citadel Founder Says Tesla Shares Will Skyrocket in 2022, CNBC, 20xx[3] Tesla vs. Ford: Who Will Be the Future of Automobiles?, The Motley Fool, 20xx[4] The Future of A.I. in Advertising, AdAge, 20xx
Investors focusing on finance and investing opportunities might consider the significant moves made by hedge fund managers in the third quarter. For instance, Daniel Loeb, the mastermind behind Third Point, bought 400,000 shares of Tesla while selling 1.4 million shares of Amazon, demonstrating his shift in investing strategy. Additionally, understanding the current market trends can aid in determining potential profit-making opportunities, such as anticipating Tesla's introduction of a $<30,000> Model Q or the possible roll-out of an autonomous ride-sharing service. By closely following these developments, individuals can make informed investment decisions, harnessing the potential for financial growth.
