Case Study 1: 10 Best Ecommerce and Tech Stocks to Purchase

In this article, we will discuss 10 e-commerce and tech stocks to buy according to Christopher Lyle’s SCGE management. If you want to skip our detailed analysis of Lyle’s history, investment philosophy, and hedge fund performance; go directly to the 5 E-commerce and Tech Stocks to Buy According to Christopher Lyle’s SCGE Management.  

Christopher Lyle is a brilliant alumnus of Stanford University. He founded SCGE management L.P in November 2008. He has previously worked as an equity analyst at Bain Capital Public Equity LP from 2004 to 2009. Apart from that, he has made noteworthy contributions to the financial service sector. SCGE management is a well reputable company that provides investment advisory services. It is known to manage more than 1.4 billion dollars in regulatory AUM, put together by a total of 19 employees. The latest filing by Christopher Lyle was disclosed at 11 BN position, representing 78 percent of his regulatory AUM.

The hedge fund return performance in the year 2021 equals 17.2% and its performance since the last 4 quarters estimates to be about 26.28%. They have procured 66.13 percent in the top ten holding percentage and a turnover percentage of 12.50%. They have held commendable stocks in different sectors including communication, IT, consumer discretionary, utilities, and telecommunication. Shopify. Inc is one of the most popular and well-known stocks held by the SCGE management. Shopify Inc. is a multinational Canadian e-commerce platform for retail point of sale systems and online stores. 

The soaring stock rates have placed Shopify Inc. in the second spot on TSX’s top 30 stock list. Considering the massive success of Shopify, Adobe has also launched a similar e-commerce payment business. Shopify stocks have also been added into the IBD Big Cap 20 and the Stock spotlight due to their soaring digits. Paypal Holdings. Inc is another commendable and well-known stock held by the SCGE management. It is one of the top growth stocks in the current stock market. It has a current revenue that equals 6.24billions. Paypal is also exploring a stock trading platform for US customers. Paypal Holdings. Inc is among the few stocks that make the biggest moves premarket and midday. It is considered a low-risk stock that is a long-term winner. 

HubSpot Inc. is another well-known and noteworthy stock held by the SCGE management. HubSpot provides a cloud based platform for marketing, sales, and customer service. The surging HubSpot stocks have resulted in making its cofounder a billionaire. It is a regarded as a winner of stocks in the technological sector. The stocks held together by the SCGE management are soaring high and surpassing their distinct annual index.

The top 10 stocks of Christopher Lyle’s SCGE management hedge funds are picked from their second quarter portfolio. Here are the top 10 ranks of the SCGE management:

10. Ringcentral Inc. (NYSE: RNG)

Lyle’s Stake Value: $436, 742

Percentage of Christopher Brown Lyle’s 13F Portfolio: 4.09%

Number of Hedge fund holders:

RingCentral is a well acclaimed company that provides communication solutions to the businesses around the globe. Vlad Schumis is the founder and CEO of RingCentral since its birth. Almost 67 hedge funds were marked to be bullish in the last quarter, which indicates an 8% change from the earlier quarter. The largest shareholder of the RingCentral stock tends to be Alkeon Capital Management with a stake worth that estimates to 705.6 million dollars. Christopher Lyle’s SCGE management is also considered a member of the smart money that is bullish, designating 4.19 percent to RNG. RingCentral Inc. is not a well-known stock but the hedge fund interest surpasses the average score. These stocks are known to be oversold as RNG along with Zoom proved to be a total sellout during the pandemic. The pandemic soared RingCentral’s revenue by 31 percent but it has also been observing a 28 percent growth per decade, which makes it a prospective stock to consider as virtual connectivity becomes a crucial element of every business. 

9. Okta Inc. (NASDAQ: OKTA)

Lyle’s Stake Value: $437, 243

Percentage of Christopher Brown Lyle’s 13F Portfolio: 4.09%

Number of Hedge fund holders:

Okta Inc. is a well reputable company that creates internet application software. It offers automated user management, integration, mobile identification, multifactor authentication, and reporting software. Okta serves customers worldwide. It scored impressive digits in the last quarter of 2021. Its revenue grew 40% year-over-year and the subscription revenue grew 42% year-over-year. Its Fiscal year 2021 revenue totaled $835 million and grew 43% year-over-year while the subscription revenue grew 44% year-over-year. The results of the fourth quarter showed continued strength in RPO, revenue, and cash flows. It took Okta 10 years to reach the $1 billion RPO milestone and less than two years to hit the $2 billion milestones which tends to be a tremendous level of progress by a juvenile organization. 

8. Servicenow Inc. (NYSE: NOW)

Lyle’s Stake Value: $457, 830

Percentage of Christopher Brown Lyle’s 13F Portfolio: 4.28%

Number of Hedge fund holders:

ServiceNow is a US-based software company that develops cloud based computing platforms to assist companies with managing digital workflows for enterprise operations. It facilitates customers throughout the United States. Its market cap estimates to be about 130 billion dollars, referring to the total value of all the ServiceNow Inc. shares of stock. The shares of ServiceNow rose 43.5 percent in the first half of the year 2020 because investors piled into the stocks of the company that were less likely to be interrupted by the COVID-19 pandemic. ServiceNow gained a 34 percent revenue in the first quarter of 2020, followed by a 29 to 30 percent growth for the second quarter despite the pandemic situation at surge. Technological stocks are gaining impressive digits amidst lockdown, making ServiceNow a profitable stock to invest in. 

7. Paypal Holdings Inc. (NASDAQ: PYPL)

Lyle’s Stake Value: $523, 498

Percentage of Christopher Brown Lyle’s 13F Portfolio: 4.9%

Number of Hedge fund holders:

Paypal is a US based multinational company that tends to operate as financial technology, facilitating online payment systems in the majority of the countries around the globe. It has a market cap of about 332.5 billion dollars. The portion of the shares of the Paypal Holdings Inc. that are in hands of public investors estimates to be 1.17 billion dollars. PYPL has a price to earnings ratio of about 67.50 which is high enough to suggest that investors expect high earnings growth from the company’s stock. Financial technologies are considered a significant investment these days and the investors are keen to get a piece of the action. Paypal being a financial technology has doubled its revenue from 2015 to 2020, while tripling its adjusted earnings per share. The unusual circumstances in the year 2020 leveled up the stock price of PYPL by 117 percent. Since 2020, PYPL is maintaining its upward momentum, gaining lots of attention from the investors. Almost 4.9% of the PYPL hedge funds are held by Christopher Lyle’s SCGE management. 

6. Coupang Inc. (NYSE: CPNG)

Lyle’s Stake Value: $597, 750

Percentage of Christopher Brown Lyle’s 13F Portfolio: 5.59%

Number of Hedge fund holders:

Coupang is a South Korean e-commerce company that serves as the largest online marketplace in South Korea. It has a market cap that estimates at 51.04 billion dollars. Its revenue has observed an upward momentum soaring from 4 billion dollars in 2018 to 12 billion dollars in 2020. CPNG has also observed progress in the second quarter of 2021, pivoting from 4.21 billion in the last quarter to 4.48 billion in the second quarter. Maverick Capital has the biggest hedge fund shares in CPNG accounting for 43.08 percent of the portfolio. Almost 5.59% of the CPNG hedge funds are held by Christopher Lyle’s SCGE management.

5. Sea Ltd. (NYSE: SE)

Lyle’s Stake Value: $619, 172

Percentage of Christopher Brown Lyle’s 13F Portfolio: 5.8%

Number of Hedge fund holders:

Sea Ltd. is a Singapore-based consumer internet company that has developed an integrated platform consisting of digital entertainment, electronic commerce, and digital financial services. Sea Ltd. observes a loss of 0.68 dollars per share in the second quarter of the year 2021 while its first quarter revenue equals 1.8 billion dollars. In the first quarter of 2021, almost 98 of Sea ltd. hedge funds were bullish on the stock which indicates a -15 percent change from previous quarters. Tiger Global Management LLC, managed by Chase Coleman, is the top investor in Sea Limited (NYSE: SE). Tiger Global Management LLC has a $2.1219 billion position in the stock, comprising 4.9% of the SE 13F portfolio. SE emerges as the 21st most popular stock in the 30 most popular stocks among the hedge funds. Almost 5.8 percent of its hedge funds are held by Christopher Lyle’s SCGE management. 

4. DoorDash Inc. (NYSE: DASH)

Lyle’s Stake Value: $763, 986

Percentage of Christopher Brown Lyle’s 13F Portfolio: 7.15%

Number of Hedge fund holders:

DoorDash is a US based online food ordering and delivery platform with a 56 percent market share it emerges as the largest food delivery company in the United States. In the first quarter of 2021, DASH surpassed its EPS by 233.33 percent. It has rallied up 10 percent over the last month of August. Moreover, DASH has also shown stronger than expected revenues over Q2 2021 with sales rising 83% year-over-year to about $1.2 billion, despite the relaxation of the COVID-19 guidelines over the second quarter, giving investors the confidence that the demand of its hedge funds could hold up reasonably even after COVID. However, its stocks are overvalued with the price of 206 dollars per share, sliding it away from the reach of startup investors and the public. In the first quarter of 2021, almost 38 of the hedge funds held by DASH were considered long, giving Caotue management the highest stake with a bullish position followed by Lone Pine Capital, Tiger Global Management LLC, SCGE Management, and Darsana Capital Partners; all holding considerable stakes in DoorDash Inc. 

Almost 7.15 percent of DASH hedge funds are held by Christopher Lyle’s SCGE management. 

3. Hubspot Inc. (NYSE: HUBS)

Lyle’s Stake Value: $820, 470

Percentage of Christopher Brown Lyle’s 13F Portfolio: 7.68%

Number of Hedge fund holders:

Hubspot provides cloud-based platforms to huge enterprises for operations including marketing, sales, and customer services. At the end of the first quarter of 2021, 46 hedge funds belonging to HUBS were bullish, signifying a -12 percent change from the fourth quarter of 2020. The most valuable stake in HUBS is held by Christopher Lyle’s SCGE management $820, 470 million at the end of the fourth quarter. Considering the portfolio weights assigned to each position, SCGE management allocated the biggest weight estimating about 7.68 percent of its 13F portfolio. It has a market cap that estimates 31.53 billion as per the second quarter data of 2021. 

2. Twilio Inc. (NYSE: TWLO):

Lyle’s Stake Value: $1,096, 987

Percentage of Christopher Brown Lyle’s 13F Portfolio: 10.27%

Number of Hedge fund holders:

Twilio is an American company that provides cloud communication platforms as a service. It ranks 20th in the 30 most popular stocks among hedge funds. In the second quarter of 2021, TWLO was at a 99 hedge fund portfolio, standing at an all time high, indicating a change of 5 percent from one quarter earlier. The largest and the most valuable stack in Twilio. Inc was held by Christopher Lyle’s SCGE management. The share is worth about 1096987 million dollars. Considering the portfolio weights assigned to each position, SCGE management allocated the biggest weight estimating about 10.27 percent of its 13F portfolio. In the first quarter of 2021, TWLO surpassed its EPS by 148.42 percent and in its second quarter, it graciously moved past its EPS by 17.78 percent, making it a valuable and sought-after stock to invest in, due to the constant upward momentum followed by Twilio Inc.

1. Shopify Inc. (NYSE: SHOP)

Lyle’s Stake Value: $1,306,116

Percentage of Christopher Brown Lyle’s 13F Portfolio: 12.23%

Number of Hedge fund holders:

Shopify is a Canadian e-commerce platform and subscription-based software that allows anyone to create their online stores and sell their goods. Its headquarters are located in Ottawa, Canada with a revenue of 2.93 billion. At the end of the Q4 of 2020, 90 SHOP hedge funds held a long position in the stock, indicating an 11 percent change from previous quarters. Lone Pine Capital is the largest stakeholder of the SHOP hedge funds amounting to 2032.2 million dollars. SCGE management holds the second spot with 1306.116 million dollars at stake and a 13F portfolio weightage of about 12.23 percent. It is traded at 219 dollars per stock with a market cap of 185.43 billion dollars. It holds the highest amount of hedge funds in Christopher Lyle’s SCGE management.