Tech stocks

Tech stocks are still opportunistic: David Tepper

David Tepper of Applooosa Management, one of most legendary and wise investors in the hedge fund business. He is the owner of the Carolina Panthers of the National Football League (NFL). He has been looking at the market for a long time and still consist with the belief that technology stocks are inexpensive but hold a great future ahead. Tepper told CNBC in a telephone interview “Any comparison to past overheated markets are ridiculous. Look at where multiples and rates were in 1999. I’m not saying stocks are screaming cheap but you are nowhere near an overheated market.

He thinks that if you look at technology companies like Facebook, Alibaba and their growth rate in previous 2,3 years, they are extraordinarily inexpensive. He is consistence with his views on tech stocks. Technology stocks refer to software company’s share holdings like Facebook, Twitter, Alibaba etc. In March of this year, Appaloosa managed $17 billion. He added, Technology stocks multiples are still low. They just look cheaper than any other part of the market even though they moved. The hedge fund has increased its technology stock holdings to 24 percent from 17 percent, according to the GuruFocus.

Tepper took a 3.7 million share stake in Chinese E-Commerce Giant Alibaba. According to a required 13F filing with the Securities and Exchange Commission for the June quarter released on Monday. He also bought a 1.8 million shares in PowerShares QQQ Trust, a technology sector ETF which measure & keep track of the performance of the Nasdaq 100 index.

The firm also contributed its position in Micron Technology by 6.2 million shares to 12.9 million shares, from 110,000 shares to 585,000 shares in Alphabet, 1.3 million shares to 2.6 million shares in Western Digital. Appaloosa also added 449,000 shares of Facebook for a stake of 2.4 million shares according to the 13F filing. David Tepper believe that market is too harsh on technology startups and giants.

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