We recently compiled a list of the Tech Billionaire Chase Coleman’s Top 10 Stock Picks. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against the other top stock picks of Tech Billionaire Chase Coleman.
“Tiger cub” Chase Coleman continues to shape the investment landscape with his strategic portfolio decisions. His New York-based investment firm, Tiger Global Management, helped him carve his own path in the financial world and distinguish himself as one of the most successful protegees of Julian Robertson. Previously, Coleman held the position of technology analyst at Tiger Management. Since its foundation in 2001, carrying forward Robertson’s legacy, Tiger Global Management has consistently outperformed market benchmarks.
Focusing mainly on the tech sector, with “headliners” such as Faceabook, Tiger Global led all venture capital firms in raised capital between 2007 and 2017. Additionally, in 2020, the firm generated $10.4 billion in profits for its investors, securing the top spot among hedge funds on LCH Investments’ annual list of world’s greatest hedge fund managers. When the tech sector faced a major downturn in 2022, Tiger Global’s portfolio, which was heavily invested in technology, took a significant hit. The bold strategy of sticking to high-growth technology firms paid off, as the firm’s equity portfolio recovered and showed steady gains in the following years.
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As of the end of the third quarter of 2024, Tiger Global’s holdings continue to reflect Coleman’s emphasis on the tech sector, with 45 holdings where technology stocks dominate 52.37% of the portfolio, along with concentrations in communication services, healthcare, and financial services. Despite a challenging global environment, the fund has maintained steady growth, increasing its value by over 1.08%, reaching over $23.4 billion in value.
Chase Coleman’s commitment to identifying high-quality businesses, especially in the tech sector, is reflected in Tiger Global’s top stock picks. These choices highlight a strategy centered on industry leaders and innovative companies with strong growth potential.
Chase Coleman of Tiger Global
To compile the list of Chase Coleman’s top 10 stock picks, we have looked at Tiger Global Management’s latest 13F filing and identified the largest positions based on their value.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
Shares held by Tiger Global: 10.30 million
Value of position: $1.71 billion
Alphabet Inc. (NASDAQ:GOOGL) is a leading global technology company known for its dominance in internet search and substantial investments in AI. Google Search, its flagship product, consistently holds around 90% of the global market share, driving the majority of Alphabet’s revenue through advertisement, which in the recent quarter, accounted for 75% of the company’s revenue, with an average growth of 11% over the past three quarters. In Tiger Global, the stocks account for 7.29% of the portfolio, with a value of approximately $1.7 billion.
Another division that reported a substantial increase in revenue is Google Cloud, outpacing competitors like Amazon Web Services and Microsoft Azure, with a 35% growth rate and over $11 billion in quarterly revenue. The global AI market presents solid opportunities for Alphabet, projected to grow from $200 billion to $1 trillion by the end of the decade.
Recent earnings indicate ongoing strength, with trailing twelve-month revenue of $339.86 billion and net income of $94.27 billion. Alphabet Inc. (NASDAQ:GOOGL) also expects substantial growth, with analysts forecasting EPS of $8.94 and revenue of $391.04 billion in 2025.
However, at the moment, Alphabet Inc. (NASDAQ:GOOGL) faces regulatory challenges, including antitrust cases related to its dominance in search and advertising. Some potential outcomes, such as the sale of its Chrome browser, raise investor concerns about operational disruptions. Increased competition in AI could also impact future performance, and other AI-focused stocks may offer higher short-term returns.
Overall, GOOGL ranks 3rd on our list of Billionaire Chase Coleman’s top stock picks. While we acknowledge the potential of GOOGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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