www.fool.com Open in urlscan Pro
172.64.147.90  Public Scan

Form analysis
0 forms found in the DOM

Text Content

Skip to main contentEnable accessibility for visually impairedOpen the
accessibility menu Open the Accessible Navigation Menu








Search
Accessibility Log In Help Join The Motley Fool
Accessibility Menu
Our Services
Investing Basics angle-down
Premium Services
Stock Advisor
Our Flagship Service
Return
637%
S&P Return
149%
Rule Breakers
High-growth Stocks
Return
255%
S&P Return
125%
Returns as of 04/29/2024
View Our Services
Investing 101
 * How to Invest Money
 * What to Invest In
 * How to Invest in Stocks
 * How to Invest in Index Funds
 * How to Invest in ETFs
 * How to Invest in Real Estate
 * Financial Dictionary

Best Accounts
 * Best Brokerage Accounts
 * Best Brokers for Beginners
 * Best IRA Accounts
 * Best Roth IRA Accounts
 * Best Options Brokers
 * Best Crypto Apps
 * Best Trading Apps

Stock Market Basics
 * Stock Market 101
 * Types of Stocks
 * Stock Market Sectors
 * Stock Market Indexes
 * S&P 500
 * Dow Jones
 * Nasdaq Composite

Stock Market angle-down
Premium Services
Stock Advisor
Our Flagship Service
Return
637%
S&P Return
149%
Rule Breakers
High-growth Stocks
Return
255%
S&P Return
125%
Returns as of 04/29/2024
View Our Services
Stocks
 * Growth Stocks
 * Value Stocks
 * Dividend Stocks
 * Small Cap Stocks
 * Large Cap Stocks
 * Blue Chip Stocks
 * How to Buy Stocks

Industries to Invest In
 * Consumer Goods
 * Technology
 * Energy
 * Healthcare
 * Financial
 * Cryptocurrency
 * NFTs

News
 * Top Stocks to Buy in 2024
 * Stock Market News

Retirement angle-down
Getting Started
 * Retirement 101
 * The Power of Compound Interest
 * Types of Retirement Accounts
 * 401k Basics
 * IRA Basics
 * HSA Basics

Planning for Retirement
 * How Much Do I Need to Retire?
 * When To Retire
 * Factoring in Social Security
 * What is the Full Retirement Age?
 * Investing for Retirement
 * Retirement Strategies

Retired: What Now?
 * Retiring in 2024
 * Withdrawal Strategies
 * Healthcare in Retirement
 * Taxes in Retirement
 * Estate Planning

The Ascent angle-down
Credit Cards
 * Best Credit Cards
 * Best Cash Back Cards
 * Best Balance Transfer Cards
 * Best Travel Credit Cards
 * Best 0% Credit Cards
 * Best Rewards Cards
 * Best Business Credit Cards

Bank & Loans
 * Best High-Yield Savings Accounts
 * Best Checking Accounts
 * Best CD Rates
 * Best Personal Loans
 * Best Debt Consolidation Loans
 * Best Money Market Accounts

Homebuying
 * Best Mortgage Lenders
 * Best Mortgage Refi Lenders
 * Best Lenders for First-time Buyers
 * Best FHA Mortgage Lenders
 * Current Mortgage Rates

Insurance
 * Best Car Insurance Companies
 * Cheap Insurance for Young Drivers
 * Best Full Coverage Auto Insurance
 * Best Homeowners Insurance Companies
 * Best Life Insurance Companies
 * Best Pet Insurance Companies

About Us angle-down
Our Purpose:
To make the world smarter, happier, and richer.

Founded in 1993, The Motley Fool is a financial services company dedicated to
making the world smarter, happier, and richer. The Motley Fool reaches millions
of people every month through our premium investing solutions, free guidance and
market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool
Foundation.

Who Is the Motley Fool?
 * About Us
 * Investing Philosophy
 * Reviews
 * The Motley Fool Foundation
 * Newsroom
 * Contact Us
 * Publishing Standards

Fool Podcasts
 * Podcasts Home
 * Motley Fool Money
 * Rule Breaker Investing

Social Media
 * Facebook
 * Twitter
 * YouTube
 * Discussion Boards
 * CAPS - Stock Picking Community

Other Services
 * The Ascent

Special Offer: 55% Off*
Bars Times


Search
 * Our Services
 * Investing Basics
   angle-down angle-up
   Investing 101
    * How to Invest Money
    * What to Invest In
    * How to Invest in Stocks
    * How to Invest in Index Funds
    * How to Invest in ETFs
    * How to Invest in Real Estate
    * Financial Dictionary
   
   Best Accounts
    * Best Brokerage Accounts
    * Best Brokers for Beginners
    * Best IRA Accounts
    * Best Roth IRA Accounts
    * Best Options Brokers
    * Best Crypto Apps
    * Best Trading Apps
   
   Stock Market Basics
    * Stock Market 101
    * Types of Stocks
    * Stock Market Sectors
    * Stock Market Indexes
    * S&P 500
    * Dow Jones
    * Nasdaq Composite
   
   Premium Services
   Stock Advisor
   Our Flagship Service
   Return
   637%
   S&P Return
   149%
   Rule Breakers
   High-growth Stocks
   Return
   255%
   S&P Return
   125%
   Returns as of 04/29/2024
   View Our Services
 * Stock Market
   angle-down angle-up
   Stocks
    * Growth Stocks
    * Value Stocks
    * Dividend Stocks
    * Small Cap Stocks
    * Large Cap Stocks
    * Blue Chip Stocks
    * How to Buy Stocks
   
   Industries to Invest In
    * Consumer Goods
    * Technology
    * Energy
    * Healthcare
    * Financial
    * Cryptocurrency
    * NFTs
   
   News
    * Top Stocks to Buy in ##YEAR##
    * Stock Market News
   
   Premium Services
   Stock Advisor
   Our Flagship Service
   Return
   637%
   S&P Return
   149%
   Rule Breakers
   High-growth Stocks
   Return
   255%
   S&P Return
   125%
   Returns as of 04/29/2024
   View Our Services
 * Retirement
   angle-down angle-up
   Getting Started
    * Retirement 101
    * The Power of Compound Interest
    * Types of Retirement Accounts
    * 401k Basics
    * IRA Basics
    * HSA Basics
   
   Planning for Retirement
    * How Much Do I Need to Retire?
    * When To Retire
    * Factoring in Social Security
    * What is the Full Retirement Age?
    * Investing for Retirement
    * Retirement Strategies
   
   Retired: What Now?
    * Retiring in ##YEAR##
    * Withdrawal Strategies
    * Healthcare in Retirement
    * Taxes in Retirement
    * Estate Planning
 * The Ascent
   angle-down angle-up
   Credit Cards
    * Best Credit Cards
    * Best Cash Back Cards
    * Best Balance Transfer Cards
    * Best Travel Credit Cards
    * Best 0% Credit Cards
    * Best Rewards Cards
    * Best Business Credit Cards
   
   Bank & Loans
    * Best High-Yield Savings Accounts
    * Best Checking Accounts
    * Best CD Rates
    * Best Personal Loans
    * Best Debt Consolidation Loans
    * Best Money Market Accounts
   
   Homebuying
    * Best Mortgage Lenders
    * Best Mortgage Refi Lenders
    * Best Lenders for First-time Buyers
    * Best FHA Mortgage Lenders
    * Current Mortgage Rates
   
   Insurance
    * Best Car Insurance Companies
    * Cheap Insurance for Young Drivers
    * Best Full Coverage Auto Insurance
    * Best Homeowners Insurance Companies
    * Best Life Insurance Companies
    * Best Pet Insurance Companies
 * About Us
   angle-down angle-up
   Who Is the Motley Fool?
    * About Us
    * Investing Philosophy
    * Reviews
    * The Motley Fool Foundation
    * Newsroom
    * Contact Us
    * Publishing Standards
   
   Fool Podcasts
    * Podcasts Home
    * Motley Fool Money
    * Rule Breaker Investing
   
   Social Media
    * Facebook
    * Twitter
    * YouTube
    * Discussion Boards
    * CAPS - Stock Picking Community
   
   Other Services
    * The Ascent
   
   Our Purpose:
   To make the world smarter, happier, and richer.
   
   Founded in 1993, The Motley Fool is a financial services company dedicated to
   making the world smarter, happier, and richer. The Motley Fool reaches
   millions of people every month through our premium investing solutions, free
   guidance and market analysis on Fool.com, top-rated podcasts, and non-profit
   The Motley Fool Foundation.
 * Log In
 * Help
 * Join The Motley Fool

Special Offer: 55% Off*
Free Article
You’re reading a free article with opinions that may differ from The Motley
Fool’s Premium Investing Services. Become a Motley Fool member today to get
instant access to our top analyst recommendations, in-depth research, investing
resources, and more. Learn More


BILLIONAIRE INVESTOR JIM SIMONS JUST BOUGHT THESE 3 "MAGNIFICENT SEVEN" STOCKS

By Adam Spatacco – Apr 29, 2024 at 8:00AM


KEY POINTS

 * Jim Simons is a money manager that leads a hedge fund called Renaissance
   Technologies.
 * Renaissance lists Nvidia, Meta Platforms, and Amazon among its top positions.
 * Each of these companies can benefit in the long run from secular tailwinds
   fueling AI.
 * 10 stocks we like better than Amazon


NASDAQ: AMZN


AMAZON



Market Cap
$1,868B

Today's Change
Arrow-Thin-Down
(0.56%) $1.01
Current Price
$180.63
Price as of April 29, 2024, 3:54 p.m. ET


The "Magnificent Seven" stocks dominate the artificial intelligence (AI) arena.
One notable hedge fund manager has three in his top 10 holdings.

A good way to spot trends in the stock market is to look at which companies
asset management firms are investing in. While there are a lot of hedge funds
out there, one of the more closely followed portfolios hails from Renaissance
Technologies.

Renaissance is led by Jim Simons, who is actually a mathematician by trade. A
look at the fund's most recent filings shows one clear trend: Renaissance is
investing heavily in the technology sector right now.

But with just about every tech company parroting their artificial intelligence
(AI) capabilities, it can become hard to discern the winners from the wannabes.
Let's dig into Renaissance's portfolio and assess the most bullish opportunities
from Simons and his team.


1. NVIDIA

Nvidia (NVDA 0.14%) is the third-largest position in Renaissance's portfolio,
and the biggest among its "Magnificent Seven" holdings.

What I find interesting about Nvidia's prominence in the portfolio compared to
other tech stocks is its relationship with Renaissance's largest holding
overall: Novo Nordisk. Although Renaissance trimmed its position in the Ozempic
maker by 2.4 million shares last quarter, Novo Nordisk is still handily the top
position in Simons' portfolio. Following a milestone year in 2023, Novo Nordisk
recently teamed up with Nvidia to help accelerate AI in the healthcare world.





NVDA Revenue (Quarterly) data by YCharts

The chart above illustrates Nvidia's revenue, gross profit, and free cash flow
during each quarter of the last 10 years. The obvious takeaway is that the
newfound demand fueling AI services has ignited a new growth frontier for
Nvidia.

However, there's more to the picture here. Nvidia is playing a monumentally
important role in the AI revolution. The company's H100 and A100 graphics
processing units (GPUs) are the main engine fueling myriad AI applications,
including training generative AI models, enhancing accelerated computing, and
more.

Nvidia's GPUs are being deployed in Tesla vehicles to help with autonomous
driving and are also being leveraged by Meta Platforms (META -2.46%) to hone its
targeted advertising capabilities in an intensely crowded social media
landscape.



The superior pricing power that Nvidia has achieved over the competition has
resulted in staggering profit growth. As an investor, what's encouraging to see
is that Nvidia is aggressively investing its profits into other high-growth
opportunities.

For example, earlier this year Nvidia joined OpenAI, Intel, and Microsoft in a
$675 million funding round for a humanoid robotics start-up called Figure AI.

I think this is a particularly savvy move as Nvidia has a lucrative opportunity
to help Figure AI's development from both a hardware and software perspective.
In a way, owning Nvidia is similar to owning an index fund focused on several
aspects of the AI realm.

Nvidia operates across semiconductor chips, robotics, enterprise software, and
data center services. The prolific nature of its business is leading to a
variety of AI-powered applications, and paving the way for a robust long-term
roadmap.



Considering the enormous opportunities Nvidia orbits, it's not surprising to see
the company earn such a high position in a highly regarded portfolio such as
Renaissance.

Image source: Getty Images.


2. META

Meta Platforms rounds out the top five positions in the Renaissance portfolio.
For the quarter ended Dec. 31, Renaissance bought a whopping 2 million shares of
Meta stock -- an increase of over 2,000% from its prior allocation.

2023 was a transformational year for Meta, and I'm not surprised to see smart
money pouring into the stock.

Last year, Meta underwent several rounds of layoffs in an effort to reduce its
expense profile -- which briefly became bloated following some hefty investments
related to the metaverse in 2022. Moreover, the company doubled down on its core
advertising business and proved that it can fend off rising competition from the
likes of Alphabet and TikTok.



The table below illustrates some important operating metrics for Meta:

Metric 2022 2023 Change Revenue $116.6 billion $134.9 billion 16% Operating
income $28.9 billion $46.7 billion 62% Free cash flow $18.4 billion $43.0
billion 134%

Data source: Meta.

Meta's return to respectable top-line growth combined with disciplined cost
controls ultimately led to soaring profitability. The company demonstrated a
true sign of maturity by announcing that it will be reinvesting these profits in
the form of a dividend and an increased share repurchase program.

Considering Meta's forward price-to-earnings (P/E) multiple of 24.5 is currently
the second lowest among the Magnificent Seven, I think the stock looks
especially attractive as sales and profits look to be back on the right track.


Arrows-In Collapse



NASDAQ: META

Meta Platforms
Today's Change
(-2.46%) -10,90 $
Current Price
432,39 $
Arrow-Thin-Down
YTD1w1m3m6m 1y
+82.48%
5y
Price VS S&P
META


KEY DATA POINTS

Market Cap
$1,124B
Day's Range
428,56 $ - 439,76 $
52wk Range
229,85 $ - 531,49 $
Volume
19,183,580
Avg Vol
19,041,374
Gross Margin
81.50%
Dividend Yield
0.11%


3. AMAZON

The last company I'll be exploring is Renaissance's sixth-largest holding,
e-commerce and cloud computing specialist Amazon (AMZN 0.56%).

I see Amazon in a similar light to that of Nvidia. While the company is largely
known for its online store, Amazon is a far more prolific business. The company
is a leader in cloud computing thanks to Amazon Web Services (AWS), and it also
operates in the worlds of streaming and advertising.

The trends below hit on an important theme for Amazon investors.



AMZN Free Cash Flow (Quarterly) data by YCharts



Lingering inflation and high borrowing costs took a toll on Amazon's business
over the last couple of years. However, 2023 was somewhat of a rebound year as
Amazon sharply turned back to a consistently cash-flow-positive business. And
just like Nvidia, Amazon is deploying this cash to ignite new growth.

Back in September, Amazon committed to a $4 billion investment in AI start-up
Anthropic. The overarching thesis of the deal was to integrate Anthropic into
AWS to help unlock new growth opportunities.

Moreover, AI has the potential to span across Amazon's entire ecosystem. For
example, the technology can help Amazon discover cost efficiencies that it can
integrate into warehouse and fulfillment centers, as well as new marketing
tactics that it can employ for both the e-commerce and advertising segments.

Amazon's price-to-sales (P/S) ratio of 3.2 is essentially identical to its
10-year average, making it a compelling buy for long-term investors.



I think Simons is onto something with his specific Magnificent Seven
allocations, and I see each of the companies discussed above as solid
opportunities for investors with a long-term time horizon.


SHOULD YOU INVEST $1,000 IN AMAZON RIGHT NOW?

Before you buy stock in Amazon, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are
the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The
10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000
at the time of our recommendation, you’d have $537,557!*

Stock Advisor provides investors with an easy-to-follow blueprint for success,
including guidance on building a portfolio, regular updates from analysts, and
two new stock picks each month. The Stock Advisor service has more than
quadrupled the return of S&P 500 since 2002*.

See the 10 stocks



*Stock Advisor returns as of April 24, 2024





Randi Zuckerberg, a former director of market development and spokeswoman for
Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The
Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a
member of The Motley Fool's board of directors. John Mackey, former CEO of Whole
Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of
directors. Adam Spatacco has positions in Alphabet, Amazon, Meta Platforms,
Microsoft, Novo Nordisk, Nvidia, and Tesla. The Motley Fool has positions in and
recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla. The
Motley Fool recommends Intel and Novo Nordisk and recommends the following
options: long January 2025 $45 calls on Intel, long January 2026 $395 calls on
Microsoft, short January 2026 $405 calls on Microsoft, and short May 2024 $47
calls on Intel. The Motley Fool has a disclosure policy.


IF YOU THOUGHT APPLE AND MICROSOFT WERE BIG, YOU NEED TO READ THIS.

The steel industry produced the world's first $1 billion company in 1901, and it
wasn't until 117 years later that technology giant Apple became the first-ever
company to reach a $1 trillion valuation.

But what if I told you artificial intelligence (AI) is about to accelerate the
pace of value creation? AI has the potential to produce several trillion-dollar
companies in the future, and The Motley Fool is watching one very closely right
now.

Don't fumble this potential wealth-building opportunity by navigating it alone.
The Motley Fool has a proven track record of picking revolutionary growth stocks
early, from Netflix to Amazon, so become a premium member today.

See the stock

From

This credit card could earn you $1,306 (seriously) and has one of the highest
cash back rates we've seen.



Click here to learn why even our financial experts use this credit card


RELATED ARTICLES

One Third of Billionaire David Tepper's Portfolio Is Made Up of These 3
Magnificent Seven Stocks
Amazon.com Stock Has 20% Upside, According to 1 Wall Street Analyst
This Incredible Company Has Already Created 1 Billionaire. Is the Stock a
No-Brainer Buy Now?
Billionaire Ken Griffin Owns All the "Magnificent Seven" Stocks. These 3 Are His
Favorites.
Artificial Intelligence (AI) Robots Are a $38 Billion Market, According to
Goldman Sachs. Here's How the "Magnificent Seven" Are Investing in the
Technology.
637%


MOTLEY FOOL RETURNS

Market-beating stocks from our flagship service.

Stock Advisor Returns
637%
 
S&P 500 Returns
149%

Calculated by average return of all stock recommendations since inception of the
Stock Advisor service in February of 2002. Returns as of 04/29/2024.

Discounted offers are only available to new members. Stock Advisor list price is
$199 per year.

Join Stock Advisor
Cumulative Growth of a $10,000 Investment in Stock Advisor

Calculated by Time-Weighted Return since 2002. Volatility profiles based on
trailing-three-year calculations of the standard deviation of service investment
returns.




PREMIUM INVESTING SERVICES

Invest better with The Motley Fool. Get stock recommendations, portfolio
guidance, and more from The Motley Fool's premium services.

View Premium Services

Making the world smarter, happier, and richer.

 * Facebook Facebook
 * Twitter Twitter
 * Linked In LinkedIn
 * Pinterest Pinterest
 * YouTube YouTube
 * Instagram Instagram
 * Tiktok TikTok

© 1995 - 2024 The Motley Fool. All rights reserved.

Market data powered by Xignite and Polygon.io.


ABOUT THE MOTLEY FOOL

 * About Us
 * Careers
 * Research
 * Newsroom
 * Contact
 * Advertise


OUR SERVICES

 * Stock Advisor
 * Rule Breakers
 * Rule Your Retirement
 * The Ascent
 * All Services


AROUND THE GLOBE

 * Fool UK
 * Fool Australia
 * Fool Canada


FREE TOOLS

 * CAPS Stock Ratings
 * Discussion Boards
 * Calculators
 * Financial Dictionary


AFFILIATES & FRIENDS

 * Motley Fool Asset Management
 * Motley Fool Wealth Management
 * Motley Fool Ventures
 * 1623 Capital
 * Motley Fool Foundation

 * Terms of Use
 * Privacy Policy
 * Disclosure Policy
 * Accessibility Policy
 * Copyright, Trademark and Patent Information
 * Terms and Conditions
 * Do Not Sell My Personal Information

Current
×



INVESTOR ALERT!

+ 10 Stocks to Buy Right Now!

Since inception, Motley Fool Stock Advisor has beaten the S&P 500 by more than
450%* — and the team recently revealed their 10 top-ranked stocks you can buy
right now.

Take advantage of our 55% off* special offer to get access…

Continue ›

*Returns as of April 29, 2024.




WE CARE ABOUT YOUR PRIVACY

We and our 820 partners store and/or access information on a device, such as
unique IDs in cookies to process personal data. You may accept or manage your
choices by clicking below or at any time in the privacy policy page. These
choices will be signaled to our partners and will not affect browsing
data.Privacy Policy List of Partners (vendors)
Reject All I Accept
Show Purposes