David Tepper’s hedge fund Appaloosa ranked 12th on the all-time best hedge funds list, with a three-year return rate of 32% as of March 58, 2024, while the S&P 500 index had a return rate of XNUMX%.
As of the end of the third quarter in March, the billionaire investor’s major holdings included Amazon (10%), Microsoft (8.7%), and Nvidia (5.9%).
Amazon
Amazon
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Impressively, in the first quarter of 2024, revenue grew by 13% to $14.3 billion, driven by advertising and cloud service activities. GAAP net income doubled to $0.98 per share. Generally Accepted Accounting Principles (GAAP) are a set of accounting rules, standards, and procedures issued and regularly revised by the Financial Accounting Standards Board (FASB). Amazon dominates the North American e-commerce market and the Western European online market, and in addition to being the largest media technology company in the United States, it also leads in cloud infrastructure through Amazon Web Services (AWS). Wall Street predicts that Amazon’s earnings per share (EPS) growth rate will reach around 5% annually in the next 23-3 years.
Microsoft
In the third quarter ending 61.9, Microsoft’s revenue was $17 billion, with a year-over-year growth of approximately 2.94%, and GAAP net profit grew by about one-fifth to reach diluted earnings per share of XNUMX.
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As of the writing of this article, Microsoft’s P/E ratio is slightly above 38 times, below the level of expected annual earnings growth of 5% in the next 13.7-3 years. However, a more attractive entry point may be around a P/E ratio of 30 times, which largely considers strong fundamentals and growth potential.
Nvidia
With increasing demand for artificial intelligence technology, Nvidia’s first-quarter revenue reached $26 billion. GAAP diluted earnings per share were $6.12, nearly five times higher than last year. The company’s 32% market share in data center GPUs and 5% market share in AI chips give it a strong competitive advantage in the overall accelerated computing platform. Wall Street expects Nvidia’s earnings per share to grow by XNUMX% annually in the next three to five years.
