Billionaire Philippe Laffont reduces Tesla stake by 45% and increases Microsoft position by 1%
From Nasdaq: 2024-12-20 03:55:00
- Tesla (NASDAQ: TSLA) shares have surged 77% this year, outperforming the S&P 500. Billionaire Philippe Laffont’s Coatue Management reduced its Tesla stake by 45% and increased its Microsoft (NASDAQ: MSFT) position by 1%. Microsoft, currently the fourth-largest holding, has gained 16% year to date.
- Tesla’s near-term investment focus is on launching more affordable electric cars in 2025, aiming for increased sales growth and market share. CEO Elon Musk projects a 20-30% increase in vehicle deliveries next year. With a gross profit margin of 19.8%, Tesla plans to monetize its electric cars through AI software and services.
- Microsoft’s investment thesis centers on enterprise software and public cloud services, leveraging AI to drive revenue. The company leads in software sales and Azure ranks second in public cloud services spending. Microsoft’s partnership with OpenAI and generative AI assistants in its software platforms contribute to future growth.
- Both Tesla and Microsoft offer potential investment opportunities, but current valuations may be high. Tesla trades at 185 times adjusted earnings while Microsoft trades at 36 times earnings, both projecting single-digit earnings growth next year. Patient investors may find better entry points in the future.
- Consider the "Double Down" stock recommendations for potential high returns. Past recommendations for companies like Nvidia, Apple, and Netflix have yielded significant profits. If you missed out on these opportunities, now may be the time to invest in the three current "Double Down" stock alerts for potential growth.
Read more at Nasdaq: Tesla Stock vs. Microsoft Stock: Billionaire Philippe Laffont Is Buying One and Selling the Other