Key Points
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Billionaire hedge fund manager Philippe Laffont, through Coatue Management, sold 667,400 shares of Nvidia (NASDAQ: NVDA) and acquired 10.2 million shares of Netflix (NASDAQ: NFLX) in Q4 2023.
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Nvidia holds around 90% market share in AI accelerators and has seen a 162% increase in networking revenue in Q3 2023. Analysts forecast Nvidia’s earnings will grow 38% annually over the next three years.
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Netflix’s shares are down 42% amid concerns over its $72 billion bid to acquire Warner Bros. Discovery, despite expectations for 22% annual earnings growth over the next three years.
Philippe Laffont’s strategic portfolio adjustments reveal significant shifts in focus within the tech sector. By trimming his stake in Nvidia, known for its dominance in AI technologies, and investing heavily in Netflix after its 10-for-1 stock split, Laffont appears to seek diversification following Nvidia’s three-year performance, which outpaced the S&P 500 by 112 percentage points. Nvidia’s addressable market and robust growth potential remain high, while Netflix’s valuation could present opportunities despite its recent downturn.
