Billionaire David Tepper Likes These 3 Stocks, Should He Buy?

David Tepper is a notable figure in finance, notably the billionaire founder of Florida-based global hedge fund Appaloosa Management. However, the institutional investor is also notably the owner of the Carolina Panthers in the NFL as well as Charlotte FC in the MLS, so this is a man of many ambitions who has clearly become a household name for a few reasons.

As an investor, Tepper has repeatedly taken contrarian views on the market and has in the past emphasized risk management as key to his investment strategy. A long-term bull in the stock market, David Tepper has repeatedly emphasized the importance of staying invested during bull markets and staying calm during market downturns.

I tend to wholeheartedly agree that, over the long term, optimism around companies that can grow earnings faster than the market usually pays off. And while significant corrections occur, long-term consistency with investments are far more important principles to live by.

That said, here are three of Tepper’s biggest portfolio holdings that investors may want to consider right now.

Key points about this article:

• In addition to being a major hedge fund manager, David Tepper is also the owner of the Carolina Panthers, which makes this investment titan interesting on several levels.
• For those intrigued by his long-term investing style, here are three of his biggest holdings worth considering right now.
• If you’re looking for action with huge potential, be sure to grab our free copy brand new “Next NVIDIA” report.. It has a software stock where we are sure it has 10x potential.

Alibaba (BABA)

The Chinese e-commerce giant Alibaba Group (NASDAQ:BABA) has certainly been an underperformer in recent years. Indeed, over the past five years, BABA stock is actually down more than 30%. That move compares with relatively strong revenue and earnings growth from the Chinese giant, which many investors see continuing for a very long time due to demographic tailwinds from emerging markets.

In particular, BABA stock has recently shown signs of life, rising in the short term. In the past three months, Alibaba has seen its share price rise by more than 50%, indicating that investors are becoming increasingly optimistic about the long-term potential of Chinese companies right now. This comes as the Chinese government announced a series of stimulus measures that many believe are aimed at supporting valuations. And with a plethora of crackdowns from the CCP hampering BABA’s actions in the past, this move is certainly one that investors have been waiting for as a green light to enter.

From here, it will be interesting to see if Tepper wants to cash in on his big bet or if he wants to take this one. The Chinese stock market has been notoriously volatile, so I’d bet that at least some cutting activity is likely from its hedge fund in future 13-F filings.

But for now, Tepper looks like a genius again with his big position in this growth stock that’s finally moving higher.

Amazon (AMZN)

Since 2010, Amazon (NASDAQ:AMZN) has been a strong growth story, outperforming the overall market by a wide margin. Many long-term investors, including Tepper, seem to think the growth story is far from over for this e-commerce and cloud giant.

There could certainly be a strong case to be made on this front. First, Amazon’s dominant position in the U.S. cloud computing and digital advertising market attract the high-margin businesses that many investors want exposure to. And with nearly 40% market share in the US e-commerce market, Tepper’s stakes in Alibaba and Amazon really indicate he’s bullish on this global space for the long term.

Perhaps more important to Amazon’s bottom line is its more than 30 percent market share in the cloud computing sector, which continues to be the earnings powerhouse that supports the company’s investments in artificial intelligence and other growth initiatives.

If this cash cow of a tech giant can continue to channel its capital into higher-margin businesses, it’s entirely possible that this growth story will continue. David Tepper seems to think so.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) really needs no introduction to most readers as to why this growth stock is a top pick of Tepper’s fund (or any hedge fund manager’s portfolio).

The software and cloud giant has become a major force in the world of artificial intelligence, with a series of multibillion-dollar investments in OpenAI and a number of other smaller companies of late. The company is looking to solidify its position at the top of the AI ​​food chain by trying to integrate AI solutions into its software suite to widen its moat and produce even more ridiculously high profit growth in the long term.

For now, the market seems to be rewarding Microsoft’s recent moves, and there are fundamental reasons to do so. In fiscal year 2024Microsoft reported revenue of $245.1 billion and net income of $88.1 billion. These numbers translate into a 15.7% increase in the top line and an even bigger increase in profit of almost 22%. These are the kinds of numbers one might expect from a much smaller company, not a $3 trillion behemoth.

But this is the market we’re in, where the big get bigger. In this case, owning Microsoft stock in an overweight fashion indicates that Tepper may believe that the stock market will remain high for some time.

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