On May 15th, the US Securities and Exchange Commission (SEC) received 13F documents from American investment houses that manage at least $100 million. These documents provide insight into the investments made by these firms in the quarter ending in March and offer a glimpse into the strategies employed by their heads.
The 13F document is an essential tool for investors who want to understand what actions are taken by big players on Wall Street when it comes to securities. Among the seven “wonderful” stocks that drove Wall Street indices to new highs, investors were particularly interested in learning more about what had happened with Nvidia, one of these top performers.
Investors’ actions varied when it came to Nvidia, with some selling shares despite its strong financial performance. The reasons for this decision included concerns about growing competition from companies like Microsoft, Meta, and Amazon, who are also significant customers of Nvidia and account for a significant portion of its revenue streams.
On the other hand, Amazon continued to be a favorite among investors due to its diverse revenue streams, including cloud computing services, advertising platforms, subscription services, and a strong cash flow multiplier that make it an attractive investment opportunity. Despite this popularity among investors, some chose to sell shares in Meta, which is controlled by Facebook. This could have been due to profit realization or concerns about capital investments in areas such as Metaverse development or artificial intelligence research.
Overall, the actions taken by investors in these top stocks revealed differing perspectives and strategies based on market dynamics and company performance.
