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The Walt Disney Co. (DIS) continues moving forward while slightly underperforming the S&P 500. The family entertainment and media company’s stock rose by approximately 22.9% as of September 30, 2021, compared to the S&P’s gain of about 36.2% since the start of 2020. However, while Disney’s growth may have temporarily fallen behind, it was recently added to the WhaleWisdom Whale Index 100 on August 17, 2021.

Disney represents an international family entertainment and media enterprise made up of multiple subsidiaries and affiliates. Often thought of for its fairytale movies, theme parks, and resorts, Disney’s entertainment options also include general entertainment and sports, cruises, and a successful Disney+ on-demand streaming service. The company’s business diversification has been helpful during the coronavirus pandemic. Disney’s theme parks were forced to close several times during the pandemic, cruise ships docked, studio production halted, and hotel reservations down. During this time, the company saw skyrocketing demand for its Disney+ service as families sought entertainment from the safety of their homes during stay-at-home government orders. However, all of Disney’s theme parks have since reopened gates, many of its cruises have resumed, movie theatres are slowly reopening, and even Disney’s ESPN Wide World of Sports experience relaunched in time for soccer season. As the travel industry’s rebound has a positive impact on Disney’s business, the appeal of Disney+ continues as well.

Hedge Funds Are Selling

Despite Disney’s overall year-to-date growth, hedge funds were actively selling the stock in the second quarter, and the aggregate 13F shares held by hedge funds decreased to approximately $243.9 million from $254.9 million, a decline of about 4.3%. Overall, 29 hedge funds created new positions, 220 added to an existing ones, 66 exited, and 176 reduced their stakes. Institutions slightly increased their aggregate holdings by about 0.1% to $1.2 billion. The 13F metrics between 2001 and 2021 reflect Disney’s rising stock price and demonstrate the potential for the stock to continue a forward trend.

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Positive Estimates

Analysts expect an increase in revenue in 2020 and 2021, bringing revenue to approximately $67.7 billion by September 2021 and about $84.8 billion by September 2022. Earnings are forecast to rise to $4.99 in 2022 from an estimated $2.50 in 2021.

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Analysts Note Slower Subscriber Growth

Top analysts may give Disney different ratings, but one thing most have in common is the acknowledgment that despite its popularity, Disney+ subscriber growth has slowed. BofA Securities analyst Jessica Reif Ehrlich lowered her expectations for fourth-quarter subscriber growth but maintained long-term estimates and reiterated a Buy rating for the stock and a $223 price target. Wells Fargo cut its price target on Disney to $203, down from $216, warning of slower subscriber growth. Analyst Brandon Nispel of KeyBanc Capital Markets Inc. had an Overweight rating on the stock and appeared to maintain confidence in long-term subscriber growth trends.

Optimism Beyond 2021

While 2020 and 2021 have included challenging months for Disney due to the pandemic, analysts remain optimistic for the future with encouraging earnings estimates through to 2022. Consumer interest in travel is returning, and it seems inevitable that demand for Disney’s travel destinations and entertainment sources will return to pre-pandemic levels. This entertainment and media giant holds promise beyond 2021 for patient investors.

Salesforce.com Inc. (CRM) continued its upward momentum, outperforming the S&P 500 and rising by approximately 69.2% compared to the S&P’s gain of about 33.3% since the start of 2020. The cloud services company saw positive second-quarter results, and long-term 13F metrics between 2004 and 2021 suggest that Salesforce’s investment potential remains strong.

Salesforce is a cloud-based software company and global specialist in customer relationship management (CRM). It provides CRM services and a suite of applications that focus on customer service, marketing automation, analytics, and application development. Salesforce’s business model has become more attractive during the coronavirus pandemic by allowing customers to use their cloud technology for improved communication and information-sharing during a time of increased telework and remote collaboration. In addition to Salesforce’s 2021 acquisition of Slack Technologies, Inc. that complemented its communication services, Salesforce also recently held its annual Dreamforce conference. The conference focused on helping companies find solutions to problems related to the pandemic and highlighted the importance of digital headquarters.

Hedge Funds Are Buying

Hedge funds and institutions were increasing shares in their portfolios. The aggregate 13F shares held by hedge funds increased to about 185.5 million from 174.1 million. Of the hedge funds, 69 created new positions, 176 added to an existing one, 28 exited, and 110 reduced their stakes. Overall, institutions increased their aggregate holdings by about 1.9% to approximately 713.3 million from 700.2 million.

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Positive Long-term Projections

Analysts estimate that earnings will fall slightly by January of 2022 and anticipate a subsequent rise by 2023 and 2024 of approximately 4.7% and 20.7%, respectively. These year-over-year changes would bring earnings to $4.62 per share by 2023 and $5.57 by 2024. Revenue estimates are very encouraging, with initial revenue figures for January 2022 of $26.3 billion, followed by more year-over-year estimated increases that would bring revenue to $37.0 billion by 2024, up from $31.8 in 2023.

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Analysts See Potential

Analysts are optimistic about the stock and raising price targets. Mizuho Financial Group analyst Gregg Moskowitz raised the firm’s price target to $320 from $300 and kept a Buy rating, citing the confidence level of Salesforce’s management team and the quality of sales opportunities. Patrick Walravens of JMP Securities took a positive view of the integration of Slack into Salesforce and raised the price target to $325 from $320, maintaining an Outperform rating. Wells Fargo analyst Michael Turrin kept an Overweight rating on the stock, raising its price target to $340 from $325. Piper Sandler Companies’ Brent Bracelin raised the company’s price target generously to $365 from $280 and shared confidence in a multi-year period of profit expansion and sustained growth.

Favorable Outlook

Salesforce’s history of growth and future multi-year estimates are encouraging for investors. The cloud services company continues to thrive through the pandemic and gain momentum. Analysts’ ratings and price targets speak to the company’s increased value and growth potential.

Zillow Group, Inc. (Z) stock plateaued after experiencing ups and downs transitioning into 2021. The real estate-focused media company could not maintain the record highs of early February 2021 yet still outpaces the S&P 500. Hedge funds were buying as Zillow outperformed the S&P 500, rising by approximately 105.1% compared to the S&P’s gain of about 37.7% since the start of 2020.

Zillow operates an online real estate marketplace with mobile and website applications. It generates revenue by selling advertisements to property management companies and real estate agents who place listings on their network. Zillow has a portfolio of brands, products, and services to provide real estate information and connect prospective buyers with real estate professionals and lenders. Zillow also sells advertising space to other businesses such as home organizers, insurance agents, and general contractors. Many homeowners are drawn to the Zillow.com website for its simple property valuation tool that provides a “Zestimate” of a house’s value; these Zestimates bring views in to see the advertisements and may also result in Zillow making an offer on a home. One of Zillow’s other related services is an iBuying program called Zillow Offers that allows the company to make real estate investments such as buying, fixing up, and reselling houses for a profit.

Hedge Funds and Institutions Are Buying

In the second quarter, aggregate 13F shares held by hedge funds increased to about 101.7 million from 99.3 million, an increase of approximately 2.4%. Hedge funds created 22 new positions, 60 added to an existing one, 36 exited, and 53 reduced their stakes. Institutions are also buying the stock, and aggregate holdings increased by about 1.6% to approximately 196.7 million from 193.7 million.

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Favorable Estimates

Analysts estimate that year-over-year increases will bring earnings to $1.29 per share by December 2022, up from December 2021’s predicted $1.05 in earnings. Revenue estimates are also encouraging, forecasting approximately $6.6 billion by December 2021 and rising to about $9.9 billion by December 2022. The 13F metrics between 2015 and 2021 reflect Zillow’s rising stock value with a peak in early 2021.

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Mixed Actions by Analysts

While Zillow saw growth through 2020 into the start of 2021, drops in the stock’s price factored into mixed analysts’ feedback. For some analysts, earnings were not strong enough to justify higher ratings and price targets. Brian Nowak from Morgan Stanley lowered the firm’s price target on Zillow to $153 from $155, maintaining an Equal Weight rating on the shares. Nowak shared optimistic revenue estimates but still sees Zillow’s iBuying business segment as continuing to “re-rate lower.” Piper Sandler analyst Thomas Champion noted the strong home sales market and kept an Overweight rating on Zillow’s stock. Meanwhile, Zelman & Associates upgraded Zillow to a Buy following a recent decline in value and after previously downgraded its stock rating to Neutral.

Better Days on the Horizon

Though Zillow’s stock value has fallen since February 2021, it continues to outperform the S&P 500. The U.S. housing market has seen soaring prices and high demand for inventory over the past year, offering continuing opportunities for Zillow’s business model. Zillow’s real estate marketplace has the potential to continue to see growth in parallel to the housing market. Analysts’ earnings predictions and the stock’s currently lower value may be attractive for long-term investors.

Carvana Co. (CVNA) saw continued growth over the past year, significantly outperforming the S&P 500 and rising by approximately 271.8% compared to the S&P’s gain of about 38.5%. Despite the stock’s continued growth and positive second-quarter results, hedge funds were selling as institutions added.

Carvana is an e-commerce platform for buying and selling used cars. As most of its business involves contactless online sales, the company has benefited from the coronavirus pandemic in many ways. Consumers’ preferences toward remote interaction and shopping have changed during the pandemic. Carvana allows them to browse, purchase and finance through a convenient online platform. Consumers may then choose between getting their vehicle delivered directly to them or picking it up at one of Carvana’s automated car vending machines. Also, the pandemic has created significant supply chain disruptions, leaving new car dealerships with minimal inventory and creating more demand for used cars from both dealerships and companies like Carvana.

Mixed Results from Hedge Funds and Institutions

Carvana saw mixed results during the second quarter activity. The aggregate 13F shares held by hedge funds decreased to about 42.8 million from 42.9 million, a mild decrease of approximately 0.1%. Of the hedge funds, 22 created new positions, 59 added to an existing holding, 31 exited, and 33 reduced their stakes. In contrast to hedge funds, institutions were buying. Overall, institutions increased their aggregate holdings by about 0.1%, to approximately 93.2 million from 93.1 million. The 13F metrics between 2017 and 2021 are a good reflection of Carvana’s rising stock price and demonstrate the potential for the stock to continue an upward trend.

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Two-Year Forecast has Neutral Feel

Analysts expect to see an initial decline in earnings per share, though eventually earnings and revenue are predicted to continue forward on a positive trend through to 2022. The company is forecast to have a loss of -$1.05 in December 2021, which is expected to then improve to -$0.33 by December 2022. Year-over-year estimated increases could bring over $12 billion in revenue by 2021 and $15.6 billion in revenue by 2022.

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Optimistic Analysts

Citigroup analyst Nicholas Jones was bullish on the stock, citing better than expected results in the second quarter. Jones raised the firm’s price target on Carvana to $405 from $375 and kept a Buy rating on shares. Chris Pierce of Needham & Co. was also enthusiastic about the stock and raised the firm’s price target to $421 from $400. Pierce noted that the pace at which Carvana’s shares have been gaining ground has accelerated, and he maintained a Buy rating on the stock.

Favorable Outlook

Carvana continues to build its customer base and show growth, benefitting from the unique environment created from the pandemic. Analysts appear bullish about this e-commerce company, raising price targets as demand for used vehicles increases. Future revenue estimates are also encouraging for investors.

Snap Inc. (SNAP) experienced soaring growth over the last ten months, significantly outperforming the S&P 500. The camera and social media company’s stock rose by approximately 357.0% since the start of 2020 compared to the S&P’s gain of about 39.1%. Given this astounding level of growth, it is understandable to see hedge funds and institutions actively buying.

Snap is widely known for its technological products and services, such as the Snapchat application for smartphones and Bitmoji, personalized cartoon avatars. Snap also recently announced augmented reality smart glasses geared towards developers, called Spectacles. Snap originated as a camera company, utilizing its Snapchat camera app to connect people through a playful medium and sell advertising space. It ultimately grew into a strong player in the social media industry, focusing on empowering self-expression, increasing communication among family and friends, and general entertainment. While Snap experienced a decline in value during the earlier stages of the coronavirus pandemic, the stock has seen rapid growth in 2021 with boosts in digital advertising spending and greater demand for advertising partnerships.

Hedge Funds Are Enthusiastic

Hedge funds and institutions heavily bought Snap’s stock in the second quarter of 2021. For hedge funds, the aggregate 13F shares held increased to about 219.7 million from 207.7 million, an increase of approximately 5.8%. Of the hedge funds, 41 created new positions, 71 added to existing ones, 40 closed out their holdings, and 45 reduced their stakes. Institutions were also purchasing the stock, and aggregate holdings increased by about 3.4% to approximately 830.4 million from 803.2 million. As a result, the stock was added to the WhaleIndex 100 on August 17, 2021.

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Positive Multi-year Figures

Analysts expect to see earnings rise in 2021 and 2022 to an estimated $0.35 per share and $0.79 per share, respectively. Revenue estimates are also encouraging, predicting approximately $4.2 billion for December 2021 and rising to about $6.2 billion by December 2022. The 13F metrics between 2016 and 2021 are a good reflection of Snap’s ascending stock price and demonstrate the potential for the stock to continue on an upward trend, and institutional investors build longer-term positions.

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Analysts Raise Price Targets

Snap’s shares are setting new records for the company, and analysts have taken notice. Brent Thill of Jefferies Group LLC was impressed by the recent performance and raised their price target on Snap to $90 from $81. Barclays Investment Bank raised its price target on the stock to $81 from $75. Also, Piper Sandler Companies noted that revenue was better than anticipated. Analyst Thomas Champion reiterated an Overweight rating and $85 price target on the stock.

Positive Outlook

Snap’s amazing growth is no camera trick or tweaked reality. Hedge fund activity is an encouraging sign for investors. While Snap has its fair share of competition from tech companies and social media platforms, it has been able to innovate, stay relevant, and leverage advertising demand. Second-quarter results impressed, and earnings estimates through to 2022 provide a positive outlook.

Uber Technologies, Inc. (UBER) has been on a rocky path over the past year and a half, and the gains realized over the past six months appear to have stalled. The ride-sharing company’s stock has recently fallen, bringing it into alignment with the S&P 500. Uber rose by approximately 40.4% as of late August 2021 compared to the S&P 500’s gain of roughly 39.2% since the start of 2020.

Uber faced its share of challenges throughout the coronavirus pandemic due to government-imposed travel restrictions. However, despite the negative impacts of the pandemic, Uber recently ascended in the second quarter to a rank of 10 on the WhaleWisdom Heatmap.

Hedge Funds Are Active

Uber received positive attention from hedge funds, which increased their aggregate 13F shares held to approximately 522.0 million from about 514.5 million in the second quarter, representing an increase of roughly 1.5%. Of hedge funds, 51 created new positions, 123 added to an existing one, 51 exited, and 80 reduced their stakes. In contrast to hedge funds, institutions decreased their aggregate holdings slightly by about 1.0% to approximately 1.37 billion. The 13F metrics from 2019 through 2021 suggest that Uber’s investment potential remains steady, despite ups and downs.

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Encouraging Revenue Estimates

Analysts appear optimistic with their revenue estimates, though earnings estimates are less rosy. It is anticipated that year-over-year revenue growth may range from approximately 44.5% to 25.9% between 2021 and 2023, which could bring revenue to about $28.4 billion by December 2023, up from an estimated $16.1 billion in December 2021. Earnings per share will initially decline in 2021 and 2022 before extraordinary year-over-year growth of 723.3% is predicted for 2023, bringing earnings to $0.43.

Mixed Reactions After Disappointing Second Quarter

Many analysts lowered price targets amid disappointing second-quarter results. Doug Anmuth from JP Morgan & Co. kept an Overweight rating on the stock and lowered the firm’s price target to $72 from $74. Anmuth believes that the recent selloff of shares creates an attractive long-term opportunity. Wedbush Securities analyst Ygal Arounian lowered the firm’s price target to $51 from $66, maintaining an Outperform rating on Uber shares. Oppenheimer & Co. analyst Jason Helfstein lowered their price target on Uber to $70 from $80 and kept an Outperform rating on shares, acknowledging Uber’s efforts to address driver supply challenges through driver incentives. However, Jefferies analyst Brent Thill is optimistic for better third and fourth quarter performance and kept a Buy rating and $75 price target on the stock following second-quarter results.

Optimism Beyond 2021

Customer demand for travel and meal delivery services remains in flux as the pandemic continues; however, it seems likely that the foundation of Uber’s business, ride-hailing, and ride-sharing, will ultimately see a rebound in demand. Increased coronavirus vaccination rates and the promise of boosters against variants will certainly help consumer mobility recover over time. Uber has taken strategic steps to strengthen its driver supply and incentivize its workforce in the interim. Uber may not be a buy for all investors, but it holds possibilities for investors seeking a long-term opportunity.

Zoom Video Communications, Inc. (ZM) saw exceptional performance over the past year, significantly outperforming the S&P 500 and rising by approximately 400.9% compared to the S&P’s gain of about 39.6% since the start of 2020. The positivity continued as hedge funds and institutions actively bought the stock in the second quarter, aligning with the company’s rise on the WhaleWisdom Heatmap to 2 from 25.

Zoom is a technology company known for its communications platform and video collaboration services. The Zoom platform enables video meetings, webinars, online chats, and calls to facilitate communication and collaboration. Also, while based in the United States, Zoom offers the opportunity for international video conference calls. The company provides a basic level of access for free and a subscription service with a greater array of resources and tools. Subscription fees serve as a significant revenue stream that expanded considerably during the coronavirus pandemic when many businesses and educational institutions were forced to transition to remote work and virtual methods of communication. The trend of telework is likely to continue even as the pandemic concludes, as employers that realized the telework cost-savings and morale benefits now embrace a more permanent hybrid work model.

Hedge Funds Are Buying

Zoom had a favorable second quarter, with hedge funds and institutions adding shares to their portfolios. The aggregate 13F shares held by hedge funds increased to about 45.3 million from 40.3 million, a change of about 12.2%. Of the hedge funds, 30 created new positions, 77 added to an existing stake, 27 exited, and 63 reduced their holdings. Institutions increased their aggregate holdings by about 10.9% to approximately 138.0 million from 124.5 million. The 13F metrics between 2019 and 2021 reflect Zoom’s rising stock price and WhaleWisdom high Heatmap ranking of two.

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Positive Multi-year Estimates

Analysts expect to see revenue rise over the next three years, with year-over-year growth ranging from 50.9% to 19% between January 2022 and January 2024. These estimates could bring revenue to $5.7 billion by 2024. Analysts also anticipate a rise in earnings that would bring earnings per share to $4.66 by 2022, $4.74 by 2023, and $5.02 by 2024.

Analysts Upgrade

Analysts are predominantly bullish on the stock. Many have likely noted Zoom’s recent August announcement to acquire cloud contact center Five9, Inc. Analyst Steve Enders of KeyBanc Capital Markets upgraded Zoom to overweight and gave it a price target of $428. Enders shared his thoughts that video and cloud communications will be long-term priorities for enterprise information technology to support hybrid work. Morgan Stanley upgraded Zoom’s shares to overweight from an equal weight rating and raised its price target to $400 per share from $360.

Favorable Outlook

Zoom’s history of growth is noteworthy, and the company appears well-positioned to meet the strong demand for its technology. A multi-year outlook for growth brings an additional element for confidence in future performance for this tech company, which should be encouraging for investors.

Roku Inc (ROKU) experienced positive growth over the past six months, outperforming the S&P 500 and rocketing up the WhaleWisdom Heatmap to the number one ranking in the second quarter from 38 in the first quarter. Roku’s stock rose by approximately 162.3% by August 20, 2021, compared to the S&P’s gain of about 36.4% since the beginning of 2020.

Roku manufactures various digital media players for streaming videos and accessing content such as games and movies. The company has a television model in the United States. It makes additional money through hardware sales, Roku Channel advertising, and branded content. Roku also benefitted considerably from a consumer shift to streaming entertainment during the coronavirus pandemic.

Hedge Funds Are Buying

Roku experienced a positive second quarter, with hedge funds and institutions adding shares to their portfolios. The aggregate 13F shares held by hedge funds increased to about 23.1 million from 21.9 million, a change of about 5.3%. Of the hedge funds, 34 created new positions, 77 added to an existing stake, 29 exited, and 55 reduced their holdings. Institutions increased their aggregate holdings by about 3.2% to approximately 82.8 million from 80.2 million. The 13F metrics between 2016 and 2021 reflected Roku’s rising stock price.

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Encouraging Two-year Estimates

Analysts expect to see earnings rise over the next two years, with increases in growth from 2021 to 2022, bringing earnings per share to $1.55 by December 2022, up from $1.19 for 2021. Revenue forecasts are estimated at approximately $2.8 billion by 2021 and $3.8 billion by 2022.

(WhaleWisdom)

Analysts’ Ratings Vary

While Roku’s stock growth has been robust, many investment firms are trimming target prices. Wells Fargo & Co. and Stephens & Co. held an overweight rating on the stock while cutting price targets on Roku’s shares. Wells Fargo lowered its price target to $488 from $519, while Stephens & Co. reduced it to $475. Citigroup analyst Jason Bazinet lowered its price target on Roku to $410 from $450, based upon predictions of lower account growth. However, while account growth was disappointing, platform revenue was encouraging, so Bazinet maintained a buy rating.

Favorable Outlook

Roku’s year-to-date growth is encouraging. The company continues to be a leader in digital media and streaming devices, with optimistic two-year revenue estimates. While some analysts have conservatively lowered price targets, investment potential remains on an upward trend.

Square, Inc. (SQ) experienced impressive returns over the past year, outperforming the S&P 500. Square’s stock rose by approximately 329.3% since the beginning of 2020, compared to the S&P’s gain of about 38.1%. Despite Square’s upward trajectory, many hedge funds were selling in the first quarter.

Square is a financial technology company that provides financial services and digital payment tools to allow sellers to manage their business better and reach buyers online and in person. Square’s commerce ecosystem and hardware enable sellers to accept card payments through traditional swipes, online payment, or a tap of a card. Square also provides convenient payment methods for buyers. One of them is Cash App, a mobile payment service that allows users in the United States and the United Kingdom to transfer money to peers using a mobile phone application. Additionally, Square seeks to expand the benefits it can provide sellers and consumers by acquiring Afterpay Ltd., a consumer lending company, in the third quarter of the calendar year 2022.

Hedge Funds Are Selling

Despite Square’s impressive growth, hedge funds were actively selling the stock in the first quarter. The aggregate 13F shares held by hedge funds decreased to approximately 111.0 million from 112.3 million, a decline of about 1.2%. Overall, 50 hedge funds created new positions, 103 added to an existing one, 52 exited, and 84 reduced their holdings. Institutions decreased their aggregate holdings by about 2.1% to 285.1 million from 291.1 million. The company also slid on the WhaleWisdom Index to a ranking of twenty-eight from fifteen. However, the 13F metrics show that over the long-term, investors have been acquiring the stock starting in 2015, demonstrating Square’s long-term investment potential.

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Positive Estimates

Analysts anticipate that revenue will rise over the next two years, predicting $19.2 billion in revenue by the end of 2021 and $21.6 billion by 2022. Year-over-year estimated increases could bring earnings per share to $1.84 by 2021 and $2.29 by the end of 2022.

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Analysts Share Encouraging Outlooks

Square recently announced a deal to acquire Afterpay. This acquisition is likely to expand Square’s consumer base and improve the level of financial products and services offered to consumers and merchants. Many analysts have responded to the news by raising price targets. Harshita Rawat of Bernstein & Co. LLC. was enthusiastic about the acquisition, calling it “game-changing” and predicting further user growth as an outcome. Barclays Investment Bank analyst Ramsey El-Assal raised the firm’s price target on Square to $345 from $340, keeping an Overweight rating. RBC Capital Markets’ Daniel Perlin raised the firm’s price target on Square to $312 from $305, keeping an Outperform rating. Canaccord Genuity analyst Joseph Vafi also raised the firm’s price target on Square to $310 from $280, maintaining a Buy rating on shares. George Mihalos of Cowen & Co. anticipates great benefits for Square from the Afterpay acquisition and gave an Outperform rating, lifting the firm’s price target to $343 from $266.

Optimism Beyond 2021

Square may have seen a dip in hedge fund activity, but that has not dimmed the light of its investment potential. Square’s upcoming acquisition of Afterpay, and the past year of impressive growth, resulted in many analysts raising price targets. Customer demand for Square’s products and services remains strong, and multi-year earnings estimates should be encouraging to investors.

Salesforce.com, Inc. (CRM) has faced a rocky yet upward climb since the coronavirus pandemic first began impacting American businesses in March 2020. However, over the past year and a half, Salesforce realized continued growth, moving up on the WhaleWisdom Heatmap to a ranking of twenty-three. Salesforce outperformed the S&P 500, rising by approximately 54.1% as of August 6, 2021, compared to the S&P’s gain of about 37.1% since the beginning of 2020.

Salesforce is a cloud services company that specializes in customer relationship management in addition to a suite of enterprise applications that focus on customer service, marketing automation, analytics, and application development. Salesforce’s services permit its customers to use cloud technology to connect with their customers and business partners. Some impacts of the pandemic were that it pushed employers to offer remote work options, master remote collaboration, and sped up a transition to a digital-first world. Recently, the company completed its acquisition of Slack Technologies, Inc., a software company that designs and develops a communication platform for real-time messaging, file sharing, and archiving services. This acquisition provides Salesforce with a great opportunity to better meet today’s customer needs.

Mixed Results from Hedge Funds and Institutions

Salesforce saw underwhelming first-quarter activity, as institutions sold shares and hedge funds made minimal overall increases to portfolios. Looking at the top hedge funds, the aggregate 13F shares increased to about 174.1 million from 173.5 million, an increase of approximately 0.4%. Of the hedge funds, 37 created new positions, 159 added to an existing stake, 43 closed out their holdings, and 122 reduced their holdings. In contrast to hedge funds, institutions sold shares and decreased their aggregate holdings by about 4.3% to approximately 700.4 million from 732.2 million. However, longer-term 13F metrics show a positive trend of investors moving into the equity.

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Encouraging Multi-year Estimates

Analysts expect to see earnings rise over the next two years, with increased growth that could bring earnings to $4.32 per share by January 2023, up from $3.84 in 2022. Revenue is predicted to increase to approximately $26.0 billion by January 2022 and $31.0 billion by January 2023.

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Favorable Ratings

Salesforce saw some positive actions from analysts as first-quarter financial data was released and supported the company’s standing as a leading software player. J. Parker Lane from Stifel Nicolaus maintained a Buy rating on the stock with a $295 price target, while Kirk Materne from Evercore ISI Research raised the firm’s price target to $300 from $290 but maintained an Outperform rating on shares.

Positive Outlook

Overall, there is a positive outlook for Salesforce that may be appealing to investors. The company has a history of growth and making strategic acquisitions, which is why analysts predict that earnings and revenue will continue to rise over the next two years. As a result, Salesforce is well poised to provide a robust platform for connecting customers and business partners.

Shopify, Inc. (SHOP) saw positive growth over the past fifteen months and significantly outperformed the S&P 500, rising by approximately 283.6% as of July 30, 2021, compared to the S&P’s gain of about 36.8%. Shopify achieved a rank of thirteen on the WhaleWisdom Heatmap as of March 31, 2021, up from its previous rank of twenty-one.

Shopify is a global company specializing in commerce infrastructure, providing an e-commerce platform and tools for online stores and retail point-of-sale (POS) systems. Shopify earns subscription fees through customers using its SHOP platform to set up a store online and market and sell their products. Shopify’s merchant customers may also sell in physical locations by using the Shopify POS application.

While the company briefly saw growth slow in early 2020 due to worldwide pandemic-related shutdowns, the business quickly rebounded. Consumers’ habits shifted heavily towards online shopping during the peak of the coronavirus pandemic. That momentum remained even after government restrictions lessened and physical retail space reopened. Convenience and newly established routines are likely reasons why many consumers have not returned to pre-pandemic shopping habits.

Hedge Funds Remain Bullish

Hedge funds have been bullish on the stock, and institutions are also buying. The aggregate 13F shares held by hedge funds increased to about 26.7 million from 22.8 million in the first quarter, a change of approximately 17.1%. Of the hedge funds, 45 created new positions, 103 added to an existing holding, 30 exited, and 81 reduced their stakes. Overall, institutions were buying and increased their aggregate holdings by about 3.0% to approximately 73.9 million from 71.7 million.

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Positive Multi-year Figures

Analysts expect to see earnings rise modestly in 2021 and 2022 to an estimated $6.52 per share and $6.59 per share, respectively. Revenue estimates are encouraging, increasing to approximately $4.6 billion predicted for December 2021 and $6.2 billion for December 2022. The 13F metrics between 2015 and 2021 demonstrate that Shopify’s investment potential remains on an upward trend.

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Strong Financial Results

Shopify realized second-quarter solid results, with subscription solutions revenue up 70% year-over-year to approximately $334.2 million. Consumers are still spending, and Shopify reported that they built on the momentum by making significant updates to their platform infrastructure, growing their portfolio, and expanding strategic partnerships. The company saw an increase in merchants joining its platform. Existing merchants could also extract more significant benefits from Shopify’s e-commerce platform and tools.

Positive Outlook

Overall, there is a positive outlook for ongoing demand for Shopify’s commerce services. Shopify benefited from pandemic lockdowns and consumer shifts to online shopping and continues to see increased demand and more robust digital commerce trends than in pre-pandemic days. Shopify’s impressive 2021 earnings to date and future revenue estimates should be appealing factors for investors.

Apple Inc. (AAPL) experienced soaring growth over the past fifteen months, outperforming the S&P 500 and rising by approximately 100.0% compared to the S&P’s gain of about 35.2%. Despite solid growth, many hedge funds and institutions sold the stock in the first quarter. So, Apple saw a slide in its rating on the WhaleWisdom Heatmap to 40 from 8.

Apple is a multinational technology company that designs, manufactures, develops, and sells personal computers, networking applications, portable music players, and mobile communication and media devices, including wearable technology (wearables) and touchscreen tablets. The tech company also offers various online services such as Mac App, a digital distribution platform for its applications, and iTunes, a media library and store. Despite the coronavirus pandemic that negatively impacted many businesses, Apple has thrived and shown record levels of growth. Pandemic-induced government stay-at-home orders had consumers reaching for their Macs, iPads, and iPhones, many purchasing more devices to meet the needs of remote learning, living, and work.

Hedge Funds Are Selling

Hedge funds appear to be trimming Apple from their portfolios. Looking at the first quarter of 2021, the aggregate 13F shares declined to approximately 1.4 billion from about 1.5 billion, decreasing approximately 6.7%. Of the hedge funds, 34 created new positions, 183 added to existing holdings, 38 exited, and 334 reduced their stakes. Aggregate holdings by institutions experienced a milder decrease of about 4.3% to approximately 9.4 billion from 9.8 billion.

(WhaleWisdom)

Encouraging Estimates Continue through 2022

Analysts anticipate that earnings will rise over the next two years, bringing earnings to approximately $5.32 by September 2022. Revenue estimates are also favorable, with year-over-year predictions that could bring revenue to $355.5 billion by 2021 and $369.0 billion by 2022.

High Expectations

Analysts are bullish on the stock, as Apple has reached new heights in financial performance. J.P. Morgan Chase & Co. analyst Samik Chatterjee recently raised his price target on Apple’s shares to $175 from $170. Chatterjee cited strong outlooks for iPhone and Mac computer sales. From Citigroup, Inc., Jim Suva also shared a positive outlook as he raised quarterly earnings estimates.

(WhaleWisdom)

Favorable Outlook

Analysts share long-term optimism for Apple as the company continues to flourish, with shares hitting record highs in the past year. Apple worked through the challenges of the coronavirus pandemic and experienced growing demand for its products and services. Optimistic multi-year estimates offer patient investors motivation to acquire and hold onto shares.

Amazon.com (AMZN) saw substantial growth this past year, outperforming the S&P 500 and rising by approximately 93.4% compared to the S&P’s gain of about 35% and reaching record highs over the past couple of weeks. Despite hedge funds selling, the stock rose on the WhaleWisdom Heatmap to a ranking of twelve.

Amazon is a multinational technology company with a powerful presence in e-commerce and the cloud computing market. The company also offers digital streaming services and artificial intelligence solutions. Amazon Web Services includes machine learning services and supporting cloud infrastructure to aid its customers in increasing productivity and improving business outcomes. As a result of the coronavirus pandemic, more businesses sought to move away from internal management of technology infrastructure and moved to the cloud. Understandably, Amazon saw a boom in business during the coronavirus pandemic. Stay-at-home government orders led to increased online shopping, greater demand for streaming entertainment, and a push towards remote work.

Hedge Funds Adjust Portfolios

Amazon lost some traction in the first quarter of 2021, as hedge funds and institutions were decreasing shares in their portfolio. The aggregate 13F shares held by hedge funds decreased to about 56.4 million from 56.3 million. Of the hedge funds, 44 created new positions, 298 added to an existing holding, 62 exited, and 271 reduced their stakes. Overall, institutions were selling and decreased their aggregate holdings by about 0.8% to approximately 287.2 million from 290.0 million. The long-term 13F metrics between 2001 and 2021 demonstrate that Amazon’s investment potential maintains on an upward trend. The company saw a rise in ranking on the WhaleWisdom WhaleIndex to a rating of twelve from thirty-six.

(Whale Wisdom)

Encouraging Multi-year Estimates

Analysts expect to see earnings rise over the next two years, increasing from 2021 to 2022 from an estimated $55.13 to $72.60. Revenue estimates were also highly encouraging, with consensus forecasts reaching $489.6 billion by December 2021 and $576.5 billion by December 2022.

(Whale Wisdom)

Favorable Outlook from Analysts

Analysts appear to recognize Amazon’s strength in the e-commerce market, sharing optimistic price targets and opportunities for future growth. Tigress Financial Partners’ analyst, Ivan Feinseth, maintained a Buy rating on the stock and initiated a twelve-month target price of $4,370. Doug Anmuth of JP Morgan Chase & Co. views Amazon as a top pick, giving it a $4,600 target price and an Overweight rating. Anmuth believes that Amazon’s e-commerce penetration will continue to increase. However, despite optimistic stock values, Amazon must also work through leadership changes as its founder, Jeff Bezos, is replaced by Andy Jassy.

Optimism Beyond 2021

Amazon ushers in a new CEO in 2021, though the potential impact of leadership change has not stopped analysts from being optimistic for the future. Customer demand for Amazon’s products and services remains very strong, and the technology company continues to see upward growth. Multi-year earnings estimates should be strong enough to continue to attract long-term investors.

DocuSign Inc. (DOCU) has seen soaring growth over the past year and significantly outperformed the S&P 500. The electronic signature technology company’s stock rose by approximately 289.6% as of July 9, 2021, compared to the S&P 500’s gain of about 33.7% since the start of 2020. Despite this growth, hedge funds were selling, and DocuSign lost traction on the WhaleWisdom Index, landing at 33 after a previous ranking of 14.

Demand for DocuSign’s subscription services has understandably increased during the coronavirus pandemic due to the need to stay connected during remote telework. DocuSign offers companies a method for remote preparation and sharing contracts and other agreements while electronically recording e-Signatures and approval notes. In particular, the company’s flagship e-signature product saw a boom in popularity from remote work during the pandemic. Even with vaccination rollouts and many pandemic restrictions lifted, DocuSign continues to see momentum for its services. Many businesses move to a hybrid workforce with a portion of remote work remaining.

Hedge Funds Are Selling

DocuSign has temporarily lost favor with hedge fund managers and institutions. Looking at activity by the top hedge funds in the first quarter of 2021, the aggregate 13F shares held declined to about 40.0 million from 40.7 million, decreasing approximately 1.9%. Of the hedge funds, 33 created new positions, 82 added to an existing position, 41 exited, and 67 reduced their stakes. Aggregate holdings by institutions experienced a slight decrease of about 0.1% to approximately 139.5 million from 139.6 million.

(WhaleWisdom)

Encouraging Multi-year Estimates

Analysts expect to see earnings rise in the next two years, bringing earnings to approximately $2.17 by January 2023. Revenue estimates are also favorable, with a year-over-year forecast showing revenue rising from $2.1 billion by 2022 and $2.6 by 2023.

(WhaleWisdom)

Analysts Are Optimistic

Analysts shared optimistic outlooks after the first-quarter results were released. William Blair & Co. anticipates a strong year for DocuSign. Oppenheimer & Co., Inc. shared that DocuSign is “strategic technology for the new digital future of work” and maintained an Overweight rating on the stock while lowering their price target to $260 from $300 due to industry compression. Morgan Stanley recognized the continuing forward momentum for DocuSign, which was not simply a one-time benefit from the coronavirus pandemic. Morgan Stanley maintained an Overweight rating on the stock and gave it a price target of $295.

Favorable Outlook

DocuSign’s future looks promising as the company continues to run with the boost in momentum garnered during the pandemic. Hedge funds may have recently decreased holdings, but optimistic estimates from analysts should be encouraging to investors.

Netflix, Inc.’s (NFLX) stock experienced steady growth over the past year, outperforming the S&P 500 as of July 2, 2021. The stock saw gains of approximately 64.9% compared to the S&P 500’s increase of about 33.7%. Netflix saw a rise in ranking on the WhaleWisdom Heatmap to an impressive level of five from 43, and hedge funds were buying.

Netflix is an entertainment service company that provides subscription services for customers to enjoy movies and television shows through streaming and DVDs by mail. Netflix initially saw subscriber growth soar during the earlier months of the coronavirus pandemic in 2020, when the government issued stay-at-home orders left customers seeking additional in-home entertainment. However, while Netflix remains a popular service, the rate of increase in their subscriber base ultimately slowed.

Hedge Funds Were Buying

Investors may be encouraged by first-quarter activity as hedge funds were adding to their portfolios. The aggregate 13F shares held by hedge funds increased to about 72.9 million from 71.6 million, a rise of approximately 1.8%. Of the hedge funds, 31 created new positions, 166 added holdings, 49 exited, and 115 reduced their stakes. Overall, institutions were selling and decreased their aggregate holdings by about 0.8% to approximately 353.6 million from 356.5 million.

(WhaleWisdom)

Encouraging Estimates for 2021 and 2022

Analysts expect to see profits rise over the next two years, with increases in growth from 2021 to 2022 that could bring earnings to $13.05 per share in 2022, up from $10.59 for 2021. Revenue is predicted to reach $34.2 billion by December 2022, up from an estimated $29.7 billion in 2021. Also, a historical look at 13F metrics between 2002 and 2020 demonstrates that Netflix’s stock value continues to gain despite plateaus in total 13F shares held.

(WhaleWisdom)

Favorable Ratings

Several investment firms gave Netflix an Outperform rating while maintaining price targets at favorable levels. Credit Suisse Group upgraded the company’s rating to Outperform from Neutral, expecting that subscriber growth will normalize in the fourth quarter. Credit Suisse kept a $586 price target on the stock noting its strong position among competitors. Cowen & Co. maintained an Outperform rating with a $650 price target.

Positive Outlook

Overall, there is a positive outlook for Netflix’s streaming future. Netflix and its competitors have all been beneficiaries of pandemic lockdowns. However, beyond the lockdowns, Netflix has a great business model with a continued strong interest in content from its customer base, leaving its long-term growth and future revenue estimates appealing to investors.

Facebook, Inc. (FB) saw continued growth over the past year, outperforming the S&P 500 and rising by approximately 66.3% compared to the S&P’s gain of about 32.5% since the beginning of 2020. However, hedge funds were actively selling the stock in the first quarter. Still, the company climbed to a ranking of sixteen on the WhaleWisdom Heatmap.

Facebook is a multinational conglomerate and provider of communication services that offer an online application and technologies to connect friends, families, and businesses. Facebook also provides products and services beyond its social networking platform and has acquired other companies such as Instagram, WhatsApp, and Giphy over the past several years.

Hedge Funds Are Selling

Despite solid growth, Facebook saw declines in share ownership, with hedge funds and 13F filers dumping the stock in the first quarter of 2021. Overall, hedge funds decreased their aggregate holdings by about 1.5%, to approximately 439.2 million shares from 446 million. Likewise, the aggregate 13F shares held fell to about 1.85 billion from 1.89 billion. Of the hedge funds, 60 created new positions, 283 added to an existing holding, 40 exited, and 264 reduced their stakes.

(WhaleWisdom)

Additionally, long-term 13F metrics demonstrate an overall upward trend in stock prices over the past fifteen years, indicated investors have not only bought shares in Facebook but have held for the long-term.

(WhaleWisdom)

Encouraging Multi-year Figures

Analysts expect to see earnings rise over the next three years, with growth rates spanning 15.5% to 29.6%. These year-over-year estimated increases could bring earnings per share up to $17.69 in 2023, from $13.07 for 2021. In addition, it is estimated that year-over-year revenue growth will range from 16.9% to 34.2% between 2021 and 2023; this could bring revenue to $160.8 billion by 2023.

Analysts Share Favorable Price Targets

Facebook recently held its annual F8 developer conference, which brought together developers across the globe to celebrate innovation and share the latest on Facebook technologies. Following the annual meeting, analyst Brent Thill of Jefferies Equity commented that Facebook is building a comprehensive toolset beyond core advertising to bring greater value. Thill maintains a Buy rating on the stock and a $385 price target. Ivan Feinseth of Tigress Financial Partners LLC also gave Facebook a Buy rating and initiated a twelve-month target price of $430. Feinseth noted that Facebook continues to benefit from the massive growth in digital advertising.

Positive Outlook

Facebook’s potential continues to grow. Hedge funds may be selling, but analysts are optimistic about the stock, and investors appear to be long-term oriented. Moreover, estimates through 2023 are encouraging for investors, making the company an attractive investment for investors willing to hold shares long-term.