Philippe Laffont (Trades, Portfolio), founder of technology-focused Coatue Management, disclosed this week his top six new buys for the second quarter were Uber Technologies Inc. (NYSE:UBER), Square Inc. (NYSE:SQ), Intuitive Surgical Inc. (NASDAQ:ISRG), Global Payments Inc. (NYSE:GPN), NetEase Inc. (NASDAQ:NTES) and Zoom Video Communications Inc. (NASDAQ:ZM).
Laffont, a former protege of Tiger Management founder Julian Robertson (Trades, Portfolio), founded Coatue in 1999. The firm invests using both long and short strategies, with a top-down, fundamental analysis approach.
As of quarter-end, Coatue's $11.82 billion equity portfolio contains 164 stocks, of which 90 represent new holdings. Technology stocks represent 57.70% of the portfolio, up 0.30% from the prior quarter's sector weight of 57.40%.
Laffont purchased 10,459,110 shares of Uber, giving the stake 4.10% weight in the equity portfolio. Shares averaged $42.42 during the period from the company's May 10 initial public offering date to June 30.
The San Francisco-based company offers several technology-driven platforms, including ridesharing, personal mobility, Uber Eats and Uber Freight. Uber said last week that diluted net loss per share for the three months ending June 30 was $4.72, approximately $2.71 higher than net loss per share in the prior-year quarter and approximately $1.60 higher than the expected loss per share according to Refinitiv's estimates. Net losses attributable to the company were $5.236 billion, reflecting $3.9 billion in stock-based compensation charges due to restricted stock unit expense recognition in connection with the IPO.
On Wednesday, the stock reached a new all-time intraday low of $33.36, down approximately 8.45% from Tuesday's close of $36.44 and approximately 25.87% from its IPO price of $45.
Laffont purchased 4,403,521 shares of Square, giving the position 2.70% weight in the equity portfolio. Shares averaged $69.80 during the quarter.
San Francisco-based Square develops a platform that allows small businesses to accept electronic payments through convenient, easy-to-use hardware and software. GuruFocus ranks the company's financial strength 6 out of 10: Although it has a strong Altman Z-score of 7.12, Square's debt-to-equity ratio of 0.81 underperforms 79.23% of global competitors.
Laffont purchased 576,652 shares of Intuitive Surgical, giving the holding 2.56% equity portfolio weight. Shares averaged $513.67 during the quarter.
The Sunnyvale, California-based company develops, produces and markets a robotic system for assisting minimally invasive surgery. GuruFocus ranks the company's financial strength 9 out of 10 on several positive signs, which include no long-term debt and a robust Altman Z-score of 30.37. Despite this, Intuitive Surgical's profitability ranks just 6 out of 10 as a three-year Ebitda rate that underperforms 52.73% of global competitors offsets strong profit margins and returns.
The Vanguard Health Care Fund (Trades, Portfolio) also established a position in Intuitive Surgical during the quarter.
Laffont purchased 1,855,215 shares of Global Payments, giving the stake 2.51% equity portfolio space. Shares averaged $148.61 during the quarter.
The Atlanta-based company provides payment processing services to U.S. small and midsize merchants. GuruFocus ranks Global Payments' financial strength 4.2 out of 10: Although the company has a moderately strong Piotroski F-score of 5, its debt-to-equity ratio underperforms 86.53% of global competitors. Despite this, the company's profitability ranks 7 out of 10 on the heels of profit margins outperforming over 80% of global competitors.
Laffont purchased 819,287 shares of NetEase, giving the position 1.77% equity portfolio weight. Shares averaged $265.28 during the quarter.
The Beijing-based company provides various online services, including games, media, email and e-commerce. GuruFocus ranks NetEase's profitability 9 out of 10: Even though operating margins have declined and are outperforming just 56.96% of global competitors, the company's business predictability ranks five stars out of five on strong and consistent revenue and earnings growth over the past 10 years even though revenues have decelerated over the trailing 12 months.
Laffont purchased 1,235,238 shares of Zoom, giving the holding 0.93% equity portfolio space. Shares averaged $81.76 during the period between the company's April 18 IPO date and June 30.
San Jose, California-based Zoom helps businesses and organizations bring their teams together in a frictionless environment to get things done. On June 6, the company said revenues for the quarter ending April 30 were $122 million, with 405 customers contributing more than $100,000 in trailing 12 month revenues.
Disclosure: No positions.
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