Latest news with #Form13F
Yahoo
12 hours ago
- Business
- Yahoo
Billionaire Stanley Druckenmiller Sold His Entire Stake in Palantir and Has Loaded Up on These 2 Exceptional Stocks for 3 Consecutive Quarters
Key Points Form 13Fs provide investors with an over-the-shoulder look at which stocks Wall Street's brightest money managers are buying and selling. There may be more than just profit-taking behind billionaire Stanley Druckenmiller's disposition of Palantir stock. Meanwhile, Druckenmiller can't stop building up his fund's stake in two outperforming businesses (one of which is another artificial intelligence stock). 10 stocks we like better than Palantir Technologies › Though earnings season is often viewed as the highlight of each quarter, there are a number of other data releases that can tell investors a lot about the health of the stock market. In particular, the filing of Form 13F with the Securities and Exchange Commission is, arguably, one of the most important quarterly data dumps. Institutional investors with at least $100 million in assets under management are required to file Form 13F no later than 45 calendar days following the end to a quarter. This filing allows investors to look over the proverbial shoulders of Wall Street's top-tier money managers to see what they've been buying and selling. Though 13Fs are far from perfect -- since they're up to 45 days old when filed, they can present a stale picture for active hedge funds -- they're invaluable in the sense that they highlight the stocks and trends piquing the interest of Wall Street's smartest investors. While Warren Buffett is the most-followed investor, he's far from the only billionaire fund manager known for their outsized returns. Duquesne Family Office's billionaire chief Stanley Druckenmiller is another billionaire asset manager with a knack for locating amazing deals. Based on the latest round of 13Fs filings, Druckenmiller completely jettisoned his fund's stake in Wall Street's artificial intelligence (AI) darling Palantir Technologies (NASDAQ: PLTR) and loaded up on two outstanding stocks for the third consecutive quarter. Billionaire Stanley Druckenmiller bids adieu to Palantir Perhaps the most eye-popping of all moves during the March-ended quarter was Druckenmiller sending all remaining shares of AI-driven data-mining specialist Palantir to the chopping block. Duquesne's 13F shows 41,710 shares were sold in the March-ended quarter, and nearly 770,000 shares were given the heave-ho since March 31, 2024. Profit-taking is a logical reason Druckenmiller was eager to depress the sell button. Since 2023 began, shares of Palantir have skyrocketed by more than 2,200%, as of the closing bell on July 15. With the average holding in Duquesne's investment portfolio sticking around for less than nine months, Druckenmiller has demonstrated a willingness to lock in profits. The concern is there may be more to Stanley Druckenmiller's exit than initially meets the eye. For example, in a May 2024 interview with CNBC, Duquesne's billionaire investor proclaimed, "AI might be a little overhyped now, but under-hyped long-term." This speaks to the reality that no game-changing innovation has escaped an early innings bubble-bursting event for more than 30 years. Artificial intelligence will need time to mature as a technology and there's not much evidence that businesses are anywhere close to optimizing their AI solutions, as of yet. Though Palantir's Gotham and Foundry platforms are respectively fueled by multiyear government contracts and enterprise subscriptions, which would help protect Palantir from a rapid decline in revenue, weak investor sentiment during a bubble would likely drag down its share price. The other glaring issue with Palantir Technologies is its valuation. Prior to the dot-com bubble bursting, businesses on the leading edge of the internet revolution peaked at price-to-sales (P/S) ratios of 31 to 43. Palantir is currently clocking in at a P/S ratio of almost 119. No stock in history has ever been able to maintain such an aggressive premium. Druckenmiller made this high-flying drug stock one of his fund's top holdings While Stanley Druckenmiller hasn't been shy about locking in profits in recent quarters, he's also done a bit of buying. Arguably no stock has been at the top of his buy list more than generic and novel drugmaker Teva Pharmaceutical Industries (NYSE: TEVA). Over the last three quarters (where 13Fs have been filed), Duquesne has purchased: Q3 2024: 1,427,950 shares Q4 2024: 7,569,450 shares Q1 2025: 5,882,350 shares (14,879,750 total shares held) In just nine months, Teva vaulted to the second-largest holding for Druckenmiller -- and it's not hard to understand why. First off, Teva has moved beyond the litigation issues that had previously crippled its stock. In 2023, it settled opioid litigation with 48 states for $4.25 billion, which includes $1.2 billion in generic Narcan (the opioid overdose reversal drug) that it'll supply to states. This amount is spread across 13 years and removed any potentially crippling financial burden from Teva's plate. Secondly, CEO Richard Francis has shifted more of his company's focus toward novel-drug development. Even though in-house therapies offer a limited period of sales exclusivity, the margins and growth potential with brand-name drugs is considerably higher than with generics. For instance, tardive dyskinesia drug Austedo has a shot at surpassing $2 billion in annual sales this year. Another reason Teva is landing on the radars of top-tier money managers like Stanley Druckenmiller is because of its much-improved balance sheet. Shortly after acquiring generic-drug company Actavis in 2016, Teva had north of $35 billion in net debt. This figure has now shrunk to less than $15 billion in net debt. The cherry on the sundae for investors is Teva Pharmaceutical's valuation. A forward price-to-earnings (P/E) ratio of 5.8 is almost unheard of amid a historically pricey stock market. Duquesne's billionaire chief piled into this AI stock instead Though Druckenmiller has prominently been a seller of high-growth tech stocks in recent quarters, world-leading chip fabrication company Taiwan Semiconductor Manufacturing (NYSE: TSM) is the exception to the rule. Over the previous three quarters where 13Fs were filed, Druckenmiller's fund has purchased: Q3 2024: 57,355 shares Q4 2024: 50,160 shares Q1 2025: 491,265 shares (598,780 total shares held) The near-term lure of Taiwan Semiconductor Manufacturing, which is also known as "TSMC," is its growing role in the AI revolution. Major graphics processing unit (GPU) companies are leaning on TSMC to rapidly expand its chip-on-wafer-on-substrate capacity, which is a necessity for the packaging of high-bandwidth memory in high-compute data centers. TSMC's rapid chip-fab expansion is leading to sustained double-digit growth and a mammoth backlog. But the key to Taiwan Semi's long-term success is that it's far more than just an AI play. For instance, TSMC is the primary manufacturer of the processors Apple uses in its iPhone. TSMC also manufactures chips and components found in next-generation vehicles and internet-connected devices, as well as smartphones. If the AI bubble were to form and burst, as history suggests it will, Taiwan Semi will have plenty of sales channels to fall back on beyond the AI space. Stanley Druckemiller might also be attracted to Taiwan Semiconductor's attractive valuation, relative to most AI stocks. Taking into account that chip fabrication companies tend to be highly cyclical, TSMC's forward P/E ratio of less than 22 is still pretty reasonable given an expected sales growth rate of 26% in 2025 and 16% next year. Should you buy stock in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,415!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Sean Williams has positions in Teva Pharmaceutical Industries. The Motley Fool has positions in and recommends Apple, Palantir Technologies, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. Billionaire Stanley Druckenmiller Sold His Entire Stake in Palantir and Has Loaded Up on These 2 Exceptional Stocks for 3 Consecutive Quarters was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Czech National Bank Buys Into Coinbase, Expands Palantir Stake
The Czech National Bank took a notable step into the cryptocurrency sector this past quarter; the institution revealed in a U.S. regulatory filing that it added 51,732 shares of Coinbase Global (COIN, Financials)worth over $18 millionto its portfolio during the second quarter of 2025. Warning! GuruFocus has detected 9 Warning Signs with COIN. Alongside its crypto debut, the central bank also deepened its bet on artificial intelligence by purchasing 49,135 shares of Palantir Technologies (PLTR, Financials), bringing its total Palantir holdings to nearly 520,000 shares by the end of June. The disclosure, made via a Form 13F filing with the Securities and Exchange Commission, offers a rare window into how a European central bank is positioning itself amid rapid shifts in technology and digital finance. Palantir, whose AI-powered data analytics have caught Wall Street's attention, has seen its stock surge 80% in the first half of 2025massively outperforming the S&P 500's modest 5.5% gain. Coinbase, meanwhile, made history in May by becoming the first crypto-native company added to the S&P 500 index. Its stock is up 41% year to date, with an additional 10% bump in the weeks following its inclusion; the past month alone has seen shares rise nearly 60%, according to Google Finance data. Still, Coinbase's financials reflect a volatile industry. In Q1, the company reported a 10% decline in revenue to $2 billion and a 95% drop in net income to $66 million, due to a $596 million unrealized loss on crypto holdings. Trading volume shrank 10.5% to $393 billion amid macro uncertainty and crypto market pressure. Despite that, earnings per share came in at $1.94, beating analyst estimates; and the company hasn't slowed down. In May, it announced a $2.9 billion acquisition of Deribit, a crypto options exchange; earlier this month, it purchased Liquifi, a platform focused on token cap tables and vesting solutions for early-stage projects. This article first appeared on GuruFocus. Sign in to access your portfolio
Globe and Mail
10-07-2025
- Business
- Globe and Mail
Billionaire David Tepper of Appaloosa Has Been Selling Artificial Intelligence (AI) Stocks en Masse, With One Exception
Key Points Form 13Fs are filed quarterly, and they allow investors to easily track which stocks Wall Street's greatest money managers are buying and selling. Appaloosa's David Tepper has been reducing his fund's exposure to artificial intelligence (AI) stocks -- and profit-taking might not be the only catalyst. However, one industry-leading AI stock (not Nvidia!) was purchased by Tepper during the March-ended quarter. 10 stocks we like better than Broadcom › Data is the currency that keeps Wall Street running. The only problem for investors is the amount of data they have to digest can sometimes be overwhelming, which can allow something of importance to go unnoticed. During the heart of earnings season in mid-May, institutional investors with at least $100 million in assets under management filed Form 13F with the Securities and Exchange Commission. This filing deadline, which occurred on May 15, may have slid under the radar of investors. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » A 13F provides invaluable insight on which stocks Wall Street's top-tier money managers bought and sold in the latest quarter. Though most investors tend to keep close tabs on which stocks Warren Buffett has been purchasing and selling, he's not the only billionaire with a penchant for outperformance. For instance, Appaloosa's David Tepper has a lengthy track record of generating outsized returns. In particular, Tepper has been a big fan tech stocks involved in the artificial intelligence (AI) revolution since late 2022. But what you might be surprised to learn is that Tepper has been reducing his exposure to AI stocks across the board over the last year... with one exception. Billionaire David Tepper can't sell his fund's AI stocks fast enough If there's a brand-name company that's made artificial intelligence a foundational part of its future growth plans, there's a pretty good chance David Tepper's Appaloosa has been a seller of its stock over the past year (defined as April 1, 2024 – March 31, 2025). In no particular order, Tepper has reduced or jettisoned his stakes in: To be fair, most of these AI stocks have skyrocketed due to strong enterprise demand for AI infrastructure, as well as pie-in-the-sky addressable market estimates. With Appaloosa's average holding time clocking in at two years and five months, simple profit-taking may very well explain this en masse selling activity. But there's likely more to this story than meets the eye. For instance, every game-changing technological innovation for more than 30 years has navigated its way through an early innings bubble that eventually burst. This is a roundabout way of saying that all new innovations and technologies need ample time to mature. With most businesses not generating a positive return on their AI investment nor optimizing their AI solutions (as of yet), the table appears set for another bubble to burst. Some of the AI stocks Tepper has exited or pared down would fare OK if the AI bubble pops. For example, Meta Platforms generates close to 98% of its net sales from advertising, which wouldn't be demonstrably hurt if the AI bubble bursts. The same can be said for Microsoft, which still leans on its legacy segments (Windows and Office) for copious amount of cash flow, and can count on cloud infrastructure service platform Azure to sustain double-digit growth. But this wouldn't be the story for Wall Street's AI darling Nvidia, which has seen almost all of its growth over the last two years originate from its AI-graphic processing units (GPUs). Nvidia has been priced as if demand for AI-GPUs won't taper, which is highly unlikely. Appaloosa's billionaire chief might also have regulatory or trade/tariff concerns. Both the Joe Biden and Donald Trump administrations established export restrictions on high-powered AI chips and related equipment to China, which is a key market for companies like Nvidia. Furthermore, the prospect of base-rate tariffs and higher " reciprocal tariff rates" instituted by President Trump threatens to eat into corporate margins, and may disrupt and/or alter supply chains and demand for U.S. hardware. It's more worrisome news for Nvidia, which may explain why Tepper has reduced his stake in the company by 93% over the prior year. This is the one artificial intelligence stock Appaloosa's David Tepper is buying While selling activity in AI stocks has been almost universal for Appaloosa's David Tepper since the start of April 2024, there is one AI company that's been an exception: networking specialist Broadcom (NASDAQ: AVGO). During the first quarter of 2025, Appaloosa's 13F shows Tepper opened a 130,000-share position. Broadcom's networking solutions are responsible for connecting tens of thousands of GPUs in AI-accelerated data centers, with the purpose of reducing tail latency and maximizing computing potential. With AI-empowered software and systems making split-second decisions, networking solutions that reduce lag/delays are imperative to the success of this technology. For those of you who've put two and two together, Broadcom stock wouldn't be immune if the AI bubble were to burst. A slowdown in data center infrastructure orders would eventually work its way down the line to Broadcom. However (and this is a fairly important "however"), Broadcom is far more than just an AI stock, which may explain why Appaloosa's billionaire investor has piled on. Although demand from a small number of AI hyperscalers accounts for the bulk of Broadcom's current growth rate, it's a considerably more diverse business than Nvidia. It's one of the leading providers of wireless chips used in next-generation smartphones. Further, it supplies various optical and/or networking components to the auto industry and industrial businesses. To boot, Broadcom offers enterprise cybersecurity solutions through Symantec, which it acquired in 2019. While an AI bubble would be impactful, it wouldn't decimate Broadcom's diverse operating segments. Broadcom's valuation is likely the other puzzle piece that attracted billionaire David Tepper. Though its current forward price-to-earnings (P/E) ratio of 34 isn't exactly cheap, its forward P/E fell to the 22 to 24 range during the stock market's swoon in March. For the time being, Broadcom is the only true exception to Tepper's en masse selling of AI stocks. Should you invest $1,000 in Broadcom right now? Before you buy stock in Broadcom, 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 Broadcom wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,764!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $980,723!* Now, it's worth noting Stock Advisor 's total average return is1,048% — a market-crushing outperformance compared to179%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 7, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. 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. Sean Williams has positions in Amazon, Baidu, Intel, and Meta Platforms. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Baidu, Intel, Meta Platforms, Microsoft, Nvidia, Oracle, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Alibaba Group and Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft, short August 2025 $24 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
08-07-2025
- Business
- Yahoo
Billionaire Stanley Druckenmiller Sold His Entire Stake in Palantir in Favor of a Smoking-Hot High-Yield Dividend Stock That's Doubled in 15 Months
Quarterly-filed Form 13Fs allow investors to track the buying and selling activity of Wall Street's leading money managers. Stanley Druckenmiller sent nearly 770,000 shares of Palantir Technologies to the chopping block -- and it may have to do with more than just simple profit-taking. Meanwhile, Duquesne's billionaire investor built up a greater than 1.1-million-share position in a company with exceptional pricing power that offers game-changing innovation. 10 stocks we like better than Palantir Technologies › Nothing bears more importance on Wall Street than data. The only problem is the sheer amount of information investors have to digest can be overwhelming and allow something of importance to slip through the cracks. For example, the heart of earnings season marked the filing deadline (May 15) for Form 13F with the Securities and Exchange Commission. This is a required filing no later than 45 calendar days following the end to a quarter by institutional investors with at least $100 million in asset under management (AUM). Its purpose is to provide a concise snapshot for investors of which stocks Wall Street's brightest investment minds purchased and sold in the latest quarter. Keeping close tabs on 13Fs is how investors have been able to ride Warren Buffett's coattails to significant long-term gains. However, Buffett is far from the only billionaire asset manager known for their keen investment insights and outsized returns. Stanley Druckenmiller of Duquesne Family Office is another billionaire who has a knack for picking out winners. Druckenmiller runs a fairly active fund that closed out the March quarter with more than $3 billion in AUM spread across 52 securities (stocks and options contracts). Though Duquesne's billionaire chief has moved in and out of dozens of stocks over the previous year (April 1, 2024 – March 31, 2025), based on 13Fs, Druckenmiller's investment activity in two industry titans stands out. Specifically, he jettisoned his fund's entire stake in high-flying artificial intelligence (AI) stock Palantir Technologies (NASDAQ: PLTR) and has piled into a high-yield dividend stock that's doubled in value since April 2024. Spanning the previous four 13Fs (a one-year period), Duquesne Family Office has completely exited 55 positions. Debatably, the most eye-popping sale is that of AI data-mining specialist Palantir. Between the end of March 2024 and the close of the first quarter of 2025, billionaire Stanley Druckenmiller sold a 769,965-share stake. Since 2023 began, Palantir stock has rallied by nearly 2,000%. The company's sustained sales growth of 25% to 35%, its highly predictable operating cash flow, and the irreplaceability of its government-focused Gotham platform and enterprise-powered Foundry platform at scale, have made it a stock to own. With the average stock in Druckenmiller's fund held for less than nine months, there's a reasonable chance this selling activity in Palantir represented nothing more than simple profit-taking. After all, megacap and industry-leading companies don't typically increase in value by 2,000% in 30 months. But there may be more to Druckenmiller dumping Palantir stock than meets the eye. For starters, Duquesne's billionaire investor believes artificial intelligence may be overhyped in the short run. While Druckenmiller views AI as a long-term corporate growth driver, he rightly recognizes that every next-big-thing trend for more than three decades has endured a bubble-bursting event early in its expansion. Considering that most businesses aren't yet generating a positive return on their AI investments, nor are they optimizing their AI solutions, we're likely witnessing the early stages of an AI bubble. If history were to repeat and the AI bubble bursts, Palantir stock would almost certainly feel the pain. Though its government contract revenue and subscriptions would help insulate its existing sales, negative investor sentiment would make Palantir stock a target. Another reason Druckenmiller may have sent all of his fund's Palantir shares to the chopping block is its indefensible valuation. While companies with double-digit sales growth and sustainable moats do deserve some form of valuation premium, Palantir has pushed the envelope of reason. It closed out the July 3 trading session at a trailing-12-month price-to-sales ratio of 107, which is roughly triple the level where other megacap companies on the leading edge of next-big-thing tech innovations have previously had their bubbles pop. Lastly, Palantir's earnings quality isn't all that it's cracked up to be. Last year, 40% of its pre-tax income traced back to interest earned on its cash. This makes Palantir's nosebleed valuation all the more egregious. But while billionaire Stanley Druckenmiller was showing shares of Palantir to the door, he was rolling out the red carpet for what's become one of the Wall Street's smoking-hot high-yield dividend stocks. Between April 1, 2024 and March 31, 2025, Duquesne Family Office built up a 1,105,268-share position in tobacco colossus Philip Morris International (NYSE: PM). It's no secret that tobacco stocks have faced numerous growth headwinds for more than a decade. Stringent marketing regulations in developed countries, coupled with campaigns by health agencies to educate consumers about the dangers of long-term tobacco use, have weighed on demand for traditional tobacco products. But in spite of these headwinds, Philip Morris International stock has doubled over the last 15 months. Even with Druckenmiller modestly paring his fund's stake in Philip Morris during the March-ended quarter, it's still Duquesne's fifth-largest holding (approximately 5.7% of invested assets, as of March 31). One of Philip Morris' prime advantages is that it's an international tobacco company that's servicing in the neighborhood of 180 countries. Even if cigarette shipment volume dips in developed countries where marketing is restrictive, there's a good chance demand for tobacco products in faster-growing emerging markets remains strong. In many emerging markets, tobacco is something of a luxury. Don't overlook the additive nature of tobacco products, either. Tobacco contains nicotine, which is an additive substance. Smokers have demonstrated a willingness to absorb price increases that, in many instances, more than offset any shipment volume declines to developed countries. But what's really set Philip Morris International's stock ablaze is the company's smoke-free business. This is the segment that houses its IQOS heated tobacco system, as well as its Zyn nicotine pouches. Total heated tobacco units sold in the March-ended quarter rose nearly 12% year-over-year to 37.1 billion, with IQOS' market share (in applicable countries) climbing. As for Zyn, 223.4 million cans were shipped in the first quarter, representing more than 53% year-over-year growth. We're witnessing the real-time transformation of Philip Morris from a traditional tobacco company to one that features smoke-free solutions -- and it's reaccelerated Philip Morris' growth rate. Druckenmiller may also be attracted to Philip Morris' rock-solid payout. Its base annual dividend of $5.40 per share works out to a 3% yield, which is more than double the average yield of S&P 500 companies. Though Philip Morris International stock is no longer a screaming bargain at 22 times forward-year earnings, it does have a knack for blowing the doors off of Wall Street's consensus profit forecasts. If it can continue to do so, its shares may still have room to run. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy. Billionaire Stanley Druckenmiller Sold His Entire Stake in Palantir in Favor of a Smoking-Hot High-Yield Dividend Stock That's Doubled in 15 Months was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-07-2025
- Business
- Yahoo
Billionaire Stanley Druckenmiller Sold His Entire Stake in Palantir in Favor of a Smoking-Hot High-Yield Dividend Stock That's Doubled in 15 Months
Quarterly-filed Form 13Fs allow investors to track the buying and selling activity of Wall Street's leading money managers. Stanley Druckenmiller sent nearly 770,000 shares of Palantir Technologies to the chopping block -- and it may have to do with more than just simple profit-taking. Meanwhile, Duquesne's billionaire investor built up a greater than 1.1-million-share position in a company with exceptional pricing power that offers game-changing innovation. 10 stocks we like better than Palantir Technologies › Nothing bears more importance on Wall Street than data. The only problem is the sheer amount of information investors have to digest can be overwhelming and allow something of importance to slip through the cracks. For example, the heart of earnings season marked the filing deadline (May 15) for Form 13F with the Securities and Exchange Commission. This is a required filing no later than 45 calendar days following the end to a quarter by institutional investors with at least $100 million in asset under management (AUM). Its purpose is to provide a concise snapshot for investors of which stocks Wall Street's brightest investment minds purchased and sold in the latest quarter. Keeping close tabs on 13Fs is how investors have been able to ride Warren Buffett's coattails to significant long-term gains. However, Buffett is far from the only billionaire asset manager known for their keen investment insights and outsized returns. Stanley Druckenmiller of Duquesne Family Office is another billionaire who has a knack for picking out winners. Druckenmiller runs a fairly active fund that closed out the March quarter with more than $3 billion in AUM spread across 52 securities (stocks and options contracts). Though Duquesne's billionaire chief has moved in and out of dozens of stocks over the previous year (April 1, 2024 – March 31, 2025), based on 13Fs, Druckenmiller's investment activity in two industry titans stands out. Specifically, he jettisoned his fund's entire stake in high-flying artificial intelligence (AI) stock Palantir Technologies (NASDAQ: PLTR) and has piled into a high-yield dividend stock that's doubled in value since April 2024. Spanning the previous four 13Fs (a one-year period), Duquesne Family Office has completely exited 55 positions. Debatably, the most eye-popping sale is that of AI data-mining specialist Palantir. Between the end of March 2024 and the close of the first quarter of 2025, billionaire Stanley Druckenmiller sold a 769,965-share stake. Since 2023 began, Palantir stock has rallied by nearly 2,000%. The company's sustained sales growth of 25% to 35%, its highly predictable operating cash flow, and the irreplaceability of its government-focused Gotham platform and enterprise-powered Foundry platform at scale, have made it a stock to own. With the average stock in Druckenmiller's fund held for less than nine months, there's a reasonable chance this selling activity in Palantir represented nothing more than simple profit-taking. After all, megacap and industry-leading companies don't typically increase in value by 2,000% in 30 months. But there may be more to Druckenmiller dumping Palantir stock than meets the eye. For starters, Duquesne's billionaire investor believes artificial intelligence may be overhyped in the short run. While Druckenmiller views AI as a long-term corporate growth driver, he rightly recognizes that every next-big-thing trend for more than three decades has endured a bubble-bursting event early in its expansion. Considering that most businesses aren't yet generating a positive return on their AI investments, nor are they optimizing their AI solutions, we're likely witnessing the early stages of an AI bubble. If history were to repeat and the AI bubble bursts, Palantir stock would almost certainly feel the pain. Though its government contract revenue and subscriptions would help insulate its existing sales, negative investor sentiment would make Palantir stock a target. Another reason Druckenmiller may have sent all of his fund's Palantir shares to the chopping block is its indefensible valuation. While companies with double-digit sales growth and sustainable moats do deserve some form of valuation premium, Palantir has pushed the envelope of reason. It closed out the July 3 trading session at a trailing-12-month price-to-sales ratio of 107, which is roughly triple the level where other megacap companies on the leading edge of next-big-thing tech innovations have previously had their bubbles pop. Lastly, Palantir's earnings quality isn't all that it's cracked up to be. Last year, 40% of its pre-tax income traced back to interest earned on its cash. This makes Palantir's nosebleed valuation all the more egregious. But while billionaire Stanley Druckenmiller was showing shares of Palantir to the door, he was rolling out the red carpet for what's become one of the Wall Street's smoking-hot high-yield dividend stocks. Between April 1, 2024 and March 31, 2025, Duquesne Family Office built up a 1,105,268-share position in tobacco colossus Philip Morris International (NYSE: PM). It's no secret that tobacco stocks have faced numerous growth headwinds for more than a decade. Stringent marketing regulations in developed countries, coupled with campaigns by health agencies to educate consumers about the dangers of long-term tobacco use, have weighed on demand for traditional tobacco products. But in spite of these headwinds, Philip Morris International stock has doubled over the last 15 months. Even with Druckenmiller modestly paring his fund's stake in Philip Morris during the March-ended quarter, it's still Duquesne's fifth-largest holding (approximately 5.7% of invested assets, as of March 31). One of Philip Morris' prime advantages is that it's an international tobacco company that's servicing in the neighborhood of 180 countries. Even if cigarette shipment volume dips in developed countries where marketing is restrictive, there's a good chance demand for tobacco products in faster-growing emerging markets remains strong. In many emerging markets, tobacco is something of a luxury. Don't overlook the additive nature of tobacco products, either. Tobacco contains nicotine, which is an additive substance. Smokers have demonstrated a willingness to absorb price increases that, in many instances, more than offset any shipment volume declines to developed countries. But what's really set Philip Morris International's stock ablaze is the company's smoke-free business. This is the segment that houses its IQOS heated tobacco system, as well as its Zyn nicotine pouches. Total heated tobacco units sold in the March-ended quarter rose nearly 12% year-over-year to 37.1 billion, with IQOS' market share (in applicable countries) climbing. As for Zyn, 223.4 million cans were shipped in the first quarter, representing more than 53% year-over-year growth. We're witnessing the real-time transformation of Philip Morris from a traditional tobacco company to one that features smoke-free solutions -- and it's reaccelerated Philip Morris' growth rate. Druckenmiller may also be attracted to Philip Morris' rock-solid payout. Its base annual dividend of $5.40 per share works out to a 3% yield, which is more than double the average yield of S&P 500 companies. Though Philip Morris International stock is no longer a screaming bargain at 22 times forward-year earnings, it does have a knack for blowing the doors off of Wall Street's consensus profit forecasts. If it can continue to do so, its shares may still have room to run. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy. Billionaire Stanley Druckenmiller Sold His Entire Stake in Palantir in Favor of a Smoking-Hot High-Yield Dividend Stock That's Doubled in 15 Months was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
