Investors planning to invest in tech stocks could consider Amazon (NASDAQ:AMZN), Alphabet Class C (NASDAQ:GOOG), and Microsoft (NASDAQ:MSFT). These major tech companies constitute the top three holdings in the portfolio of leading hedge fund expert John Kim of Night Owl Capital Management.
It's noteworthy that TipRanks offers a variety of tools to assist investors in obtaining expert insights for stock selection, including the Top Hedge Fund Managers. This tool evaluates professionals based on their success rates, average returns, and the impact of their trades. According to the rankings, John Kim is second among 483 hedge fund managers assessed by TipRanks.
Kim's portfolio has demonstrated remarkable performance, gaining 555.84% since June 2013, with an average return of 36.21% in the last 12 months. Moreover, a significant portion of the hedge fund manager's investments are concentrated in the technology sector (34.61%), followed by the Financial sector (22.02%).
Given this context, let’s explore what the Street is saying about AMZN, GOOGL, and MSFT stocks.
What Do Analysts Say About Amazon?
Shares of the e-commerce giant Amazon have already gained about 75% year-to-date. However, analysts maintain a bullish view and see further upside potential from current levels. The average AMZN stock price target of $175.51 indicates that it has the potential to go up by another 19.63% from current levels over the next 12 months.
Meanwhile, due to the strength of its cloud business and investments in AI (Artificial Intelligence), Wall Street analysts recommend buying its stock. Remarkably, all analysts providing recommendations on AMZN stock recommend a Buy, translating into a Strong Buy consensus rating.
What is the Price Target for GOOG?
Shares of Alphabet stock have risen quite a lot on a year-to-date basis. The company’s focus on AI, leadership in the search business, and an expected rebound in the ad market keep analysts bullish. With four Buy and one Hold, GOOG stock has a Strong Buy consensus rating.
Further, the average GOOG stock price target of $152 indicates 8.56% upside potential from current levels.
Is MSFT a Buy, Sell, or Hold?
MSFT stock is trending higher and has recently hit a 52-week high. Analysts expect Microsoft to continue to benefit from the rapid adoption and deployment of generative AI and digital transformation. It has received 32 Buy and one Hold recommendations for a Strong Buy consensus rating.
Further, the average MSFT stock price target of $410.03 indicates 8.52% upside potential from current levels.
Kim's solid track record of consistently delivering impressive returns validates his portfolio allocation strategy, and investors could follow the same to form well-informed investment decisions. Moreover, investors can leverage TipRanks’ other valuable tools, such as Expert Center and Smart Score, for long-term investments.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.