We recently Brad Gerstner’s 10 best tech stocks to buyIn this article, we’ll take a look at how Coupang, Inc. (NYSE:CPNG) stands relative to other tech stocks.
Gerstner is bullish on tech for 2024
On December 1, 2023, Brad Gerstner, CEO of Altimeter Capital, appeared in an interview. CNBC There, he explained that tech stocks are expected to outperform non-tech stocks in 2024. Over the past decade, tech stocks have compounded returns at nearly 16% and non-tech stocks at 6%. 2023 was a recovery year for the tech industry after a slump in 2022 due to rising interest rates. Big tech companies and their operating efficiencies are poised for strong growth. Inflation and interest rates will determine what will fall, but companies that have invested in augmented intelligence will experience long-term growth. Gerstner believes the 16% to 6% difference will be a trend that repeats in 2024.
Gerstner believes now is the right time to invest in technology.
On June 11, Brad Gerstner appeared again. CNBC He commented on the speculation surrounding the software industry.. Gerstner suggested that the software industry is still worthwhile, as companies and startups are still making deals despite the headwinds. Gerstner believes there are three main reasons for the software industry’s downward trend. He believes CEOs and CTOs are becoming cautious about investing in software. Executives want to paint a clearer picture of the AI boom before making riskier investments. Additionally, interest rates are higher than expected due to delayed rate cuts and multiple compression. Finally, general uncertainty about the future is negatively impacting the software industry’s growth. Gerstner noted that now may be the best time to allocate stock to software companies, as the software industry is trading at 20% below its 10-year average. Also see Best Robinhood Stocks Under $20.
Gerstner believes that data and databases are crucial to AI applications. He believes that companies that use data to drive AI will be much more advanced than those that simply automate services. Big tech companies are putting data at the forefront of all artificial intelligence applications. You may also want to read our article on the stocks that hedge funds are crazy about right now.
Brad Gerstner is bullish on technology, particularly software and AI. In Q1 2024, he initiated six new positions and added holdings in two more stocks, bringing his portfolio of 13F securities to $6.5 billion at the end of the quarter. Now, let’s talk about his top tech stock picks.
Our Methodology
We looked at Altimeter Capital’s Q1 portfolio and selected growth stocks from the fund’s top 13F holdings. Additionally, we added hedge fund aggregate sentiment as of Q1 2024. Why are we interested in the stocks that hedge funds concentrate on? The reason is simple: our research shows that you can outperform the market by mimicking the top holdings of the best hedge funds. Our quarterly newsletter strategy selects 14 small and large stocks each quarter and has returned 275% since May 2014, beating the benchmark by 150 percentage points (Click here for details).
Note: All pricing data is accurate as of June 28th.
A woman wearing a graphic t-shirt and holding a laptop computer casually checking an e-commerce order.
Coupang Inc. (NYSE:CPNG)
Altimeter Capital stock value: $70,570,173
Number of hedge fund holders: 66
Coupang, Inc. (NYSE:CPNG) is Brad Gerstner’s 10th largest holding. Coupang, Inc. (NYSE:CPNG) is an e-commerce company based in South Korea and Washington. The company owns over 100 of its own fulfillment centers that handle millions of products. Coupang’s AI enables fast delivery, mass order production, and system coordination. The company’s automated guided vehicles (AGVs) can bring hundreds of items to workstations in under two minutes, reducing employee workload by 65%. The company also owns a fast-growing fleet of electric vehicles, Coupang Cars, which make up 50% of the company’s fleet in Jeju Island, South Korea.
Although software companies are seeing a slowdown in growth, Gerstner has a positive outlook for the industry and expects data-driven companies to stand out at the forefront of software and AI. Brad Gerstner says, “The smart investment is to buy software.” In line with his view, Coupang, Inc. (NYSE:CPNG) is consciously leveraging AI to evolve its operations and deliver enhanced customer experiences.
As of the end of the first quarter of 2024, 66 hedge funds were bullish on Coupang, Inc. (NYSE:CPNG), with their combined holdings amounting to $3.09 billion. Wall Street analysts have a consensus opinion on CPNG of Buy. The stock has gained 34.08% since the beginning of the year. Based on price targets from 18 analysts, Wall Street’s median target price of $27.69 suggests an upside of 31% from current levels.
Overall CPNG 10th Brad Gerstner’s list of the best tech stocks to buy. Brad Gerstner’s 10 best tech stocks to buy Let’s take a look at other tech stocks that hedge funds are watching. While we see CPNG as a potential investment, we believe AI stocks have a better chance of delivering higher returns in a shorter time frame. If you’re looking for AI stocks with better prospects than CPNG but trading at less than 5x, check out our report. Cheapest AI Stocks.
Read next: Analyst sees new $25 billion ‘opportunity’ in NVIDIA, Jim Cramer recommended these 10 stocks in June.
Disclosures: None. This article was originally published on Insider Monkey.
