Billionaires sell Tesla and buy Cloudflare, with Cloudflare stock soaring in the last 3 years

From Nasdaq: 2025-07-01 04:05:00

In the first quarter, two successful hedge funds led by Wall Street billionaires sold Tesla (NASDAQ: TSLA) and bought Cloudflare (NYSE: NET). D.E. Shaw & Co. sold 1.3 million Tesla shares and purchased 5,400 Cloudflare shares. Millennium Management sold 855,100 Tesla shares and bought 218,500 Cloudflare shares.

D.E. Shaw and Millennium are two of the most profitable hedge funds in history. Tesla’s stock underperformed, returning 31% in the last three years, while Cloudflare soared 327%. Tesla struggled with demand and revenue dropped 9% in the first quarter.

Tesla started offering autonomous rides in Austin, Texas, with plans to have “hundreds of thousands” of robotaxis by the end of 2026. Despite lagging behind Waymo, Tesla’s autonomous driving strategy could lead to significant market share. However, Tesla’s stock is priced for perfection, trading at 145 times earnings.

Cloudflare is a leader in connectivity cloud services, handling 20% of web traffic. It reported a 27% increase in customers and revenue in the first quarter. The company is well-positioned to benefit from the increasing demand for AI infrastructure through its ultra-fast network.

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Read more at Nasdaq: Billionaires Sell Tesla Stock and Buy Another AI Stock Up 327% in 3 Years