According to GuruFocus’ top holdings data, billionaire investor Steven Cohen (Trades, Portfolio)’s five largest positions as of the end of the first quarter were Netflix Inc. (NFLX, Financial), The Walt Disney Co. (DIS, Financial), Marvell Technology Group Ltd. (MRVL, Financial), Alphabet Inc. (GOOGL, Financial) and Amazon.com Inc. (AMZN, Financial).
The guru’s Connecticut-based hedge fund, Point72 Asset Management, uses long, short, macro and systematic strategies to generate superior risk-adjusted returns.
Netflix
Cohen’s largest stake is 1.11 million shares of Netflix, which represents 1.8% of the equity portfolio. GuruFocus estimates he has lost 16.6% on the investment since the third quarter of 2018.
The California-based company, which runs a subscription online video streaming service, has a $159.68 billion market cap; its shares were trading around $368.82 on Friday with a price-earnings ratio of 130.43, a price-book ratio of 28.94 and a price-sales ratio of 9.93.
The Peter Lynch chart shows the stock is trading above its fair value, suggesting it is overpriced.
Netflix’s financial strength was rated 6 out of 10 by GuruFocus. Although the company has poor interest coverage and a low cash-debt ratio, the robust Altman Z-Score of 5.33 indicates it is in good fiscal health.
The company’s profitability and growth scored a 7 out of 10 rating, driven by operating margin expansion and strong returns that outperform competitors. Netflix also has a low Piotroski F-Score of 3, which implies business conditions are poor. It also has a business predictability rank of one out of five stars. GuruFocus says companies with this rank typically see their stocks gain an average of 1.1% per year over a 10-year period.
Of the gurus invested in Netflix, Frank Sands (Trades, Portfolio) has the largest stake with 1.16% of outstanding shares. Other top guru shareholders include Spiros Segalas (Trades, Portfolio), Chase Coleman (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio), Philippe Laffont (Trades, Portfolio), Bill Nygren (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Stanley Druckenmiller (Trades, Portfolio) and Daniel Loeb (Trades, Portfolio).
Disney
The guru owns a 3.24 million-share stake in Disney, representing 1.63% of the equity portfolio. According to GuruFocus, he has gained an estimated 17% on the investment since fourth-quarter 2017.
The media and entertainment company, which is headquartered in California, has a market cap of $255.59 billion; its shares were trading around $140.94 on Friday with a price-earnings ratio of 15.94, a price-book ratio of 2.43 and a price-sales ratio of 3.58.
According to the Peter Lynch chart, the stock is slightly overvalued.
GuruFocus rated Disney’s financial strength 5 out of 10. Although the company has issued approximately $14.3 billion in new long-term debt over the last three years, it is at a manageable level as a result of adequate interest coverage. The Altman Z-Score of 2.17, however, indicates it is under some fiscal pressure.
The company’s profitability and growth scored an 8 out of 10 rating, driven by operating margin expansion, strong returns that outperform a majority of industry peers, consistent earnings and revenue growth and a moderate Piotroski F-Score of 4, which suggests business conditions are stable. Disney also has a 4.5-star business predictability rank. GuruFocus says companies with this rank typically see their stocks gain an average of 10.6% per year.
With 0.25% of outstanding shares, Yacktman Asset Management (Trades, Portfolio) is Disney’s largest guru shareholder. Other top guru investors include Pioneer Investments (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Halvorsen, the Yacktman Fund (Trades, Portfolio), Mairs and Power (Trades, Portfolio), Tom Gayner (Trades, Portfolio) and the Yacktman Focused Fund (Trades, Portfolio).
Marvell Technology
The investor holds 13.35 million shares of Marvell Technology, which makes up 1.21% of his equity portfolio. GuruFocus estimates he has gained 16% on the investment since the third quarter of 2017.
Based in Bermuda, the manufacturer of infrastructure semiconductor solutions has a $15.86 billion market cap; its shares were trading around $24.03 on Friday with a forward price-earnings ratio of 30.12, a price-book ratio of 2.17 and a price-sales ratio of 5.15.
Based on the median price-sales chart, the stock appears to be overvalued since it is trading above its historical average.
Marvell’s financial strength was rated 6 out of 10 by GuruFocus, driven by good cash-debt and debt-equity ratios. The Altman Z-Score of 3.84 also suggests the company is in good fiscal standing.
The company’s profitability and growth scored a 4 out of 10 rating. Although its margins and returns are negative, they still outperform a majority of competitors. Marvell is weighed down by a weak Piotroski F-Score of 3, and its one-star business predictability rank is on watch as a result of a decline in revenue per share over the last five years.
Cohen is the company’s largest guru shareholder with 2.03% of outstanding shares. Investment firm Barrow, Hanley, Mewhinney & Strauss; Fisher; Pioneer; Wallace Weitz (Trades, Portfolio); George Soros (Trades, Portfolio) and John Buckingham (Trades, Portfolio) also have positions in the stock.
Alphabet
Cohen’s fourth-largest holding is 222,516 class A shares of Alphabet, which has an equity portfolio weight of 1.19%. GuruFocus data indicates he has made an estimated gain of 8.05% on the investment since the third quarter of 2016.
The California-based tech company, which operates the Google search engine YouTube and several other businesses, has a market cap of $722.21 billion; its shares were trading around $1,113.20 on Friday with a price-earnings ratio of 28.03, a price-book ratio of 4.27 and a price-sales ratio of 5.59.
The Peter Lynch chart suggests the stock is overvalued.
Supported by comfortable interest coverage, Alphabet’s financial strength was rated 8 out of 10 by GuruFocus. In addition, the high Altman Z-Score of 9.8 indicates the company is fiscally stable.
The company’s profitability and growth scored a 9 out of 10 rating. Although the operating margin is in decline, it still outperforms a majority of industry peers. Alphabet is also supported by steady returns, consistent earnings and revenue growth, a high Piotroski F-Score of 7, which suggests operations are healthy, and a 3.5-star business predictability rank. GuruFocus says companies with this rank typically see their stocks gain an average of 9.3% per year.
Of the gurus invested in Alphabet, PRIMECAP has the largest stake with 0.32% of outstanding shares. Other top guru shareholders include Fisher, Sands, Ruane Cunniff (Trades, Portfolio), Pioneer, Segalas, Chris Davis (Trades, Portfolio), Diamond Hill, Larry Robbins (Trades, Portfolio), Halvorsen, Glenn Greenberg (Trades, Portfolio) and First Pacific Advisors (Trades, Portfolio).
Amazon.com
The guru has a 146,120-share position in Amazon, which accounts for 1.18% of the equity portfolio. According to GuruFocus, Cohen has made an estimated gain of 33% on the investment since the first quarter of 2017.
The Seattle-based e-commerce company has a $941.94 billion market cap; its shares were trading around $1,915.37 on Friday with a price-earnings ratio of 79.88, a price-book ratio of 19.84 and a price-sales ratio of 3.97.
According to the Peter Lynch chart, the stock is overvalued.
GuruFocus rated Amazon’s financial strength 6 out of 10, driven by sufficient interest coverage and a robust Altman Z-Score of 6.23, which suggests the company is in good fiscal standing.
The company’s profitability and growth scored an 8 out of 10 rating. In addition to operating margin expansion, Amazon is supported by returns that outperform at least half of competitors, a moderate Piotroski F-Score of 6, consistent earnings and revenue growth and a 4-star business predictability rank. According to GuruFocus, companies with this rank typically see their stocks gain an average of 9.8% per year.
With 0.34% of outstanding shares, Fisher is Amazon’s largest guru shareholder. Other top guru investors include Sands, Segalas, Coleman, Davis, Pioneer, Steve Mandel (Trades, Portfolio), Warren Buffett (Trades, Portfolio), Laffont and Jim Simons' (Trades, Portfolio) Renaissance Technologies.
Portfolio composition
Cohen’s other top holdings as of the end of the first quarter were Encana Corp. (ECA, Financial), Anadarko Petroleum Corp. (APC, Financial), Marathon Petroleum Corp. (MPC, Financial), Capital One Financial Corp. (COF, Financial) and Fidelity National Information Services Inc. (FIS, Financial).
The guru’s $22.03 billion equity portfolio, which is composed of 989 stocks, is heavily invested in the consumer cyclical sector, followed by smaller holdings in the technology, health care and energy sectors.
Disclosure: No positions.
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