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Nasdaq Sell-Off: 3 Stocks to Buy That Billionaire Money Managers Also Love

Nasdaq Sell-Off: 3 Stocks to Buy That Billionaire Money Managers Also Love

  • 18.03.2025 09:34
  • msn.com
  • Keywords: AI, Market Growth, Revenue Drop

The article highlights three stocks—Amazon, Sirius XM, and Meta Platforms—that are favored by billionaire investors during the Nasdaq sell-off. These companies offer attractive valuations and strong growth prospects, making them compelling buys amid market volatility.

Amazon ServicesMeta NewsMeta ServicesAMZNsentiment_dissatisfiedBRK.Bsentiment_satisfiedMETAsentiment_dissatisfiedSIRIsentiment_satisfied

Estimated market influence

Amazon

Amazon

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Amazon's stock has dropped by 20% since February, but it is still favored by several billionaire investors. The company's AWS and AI initiatives are expected to drive future growth.

Berkshire Hathaway

Berkshire Hathaway

Positivesentiment_satisfied
Analyst rating: Neutral

Berkshire Hathaway holds significant stakes in Amazon, Sirius XM, and Meta Platforms, indicating confidence in these companies' long-term prospects.

Meta Platforms

Meta Platforms

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Meta's stock has dropped by 20%, but its strong user base and AI integration suggest potential for recovery.

Sirius XM Holdings

Sirius XM Holdings

Positivesentiment_satisfied
Analyst rating: N/A

Despite a 45% drop in stock price over the past year, Sirius XM benefits from subscription revenue stability and a competitive moat.

Context

Analysis of Nasdaq Sell-Off and Strategic Investment Opportunities

Market Overview

  • Nasdaq Composite: Plunged by 11.5% from February 19 to March 14, 2025.
  • S&P 500: Escaped correction territory after a rally on March 14.

Stock Analysis

Amazon (NASDAQ: AMZN)

  • Performance: Fallen by 20% since early February.
  • Key Holders:
    • Philippe Laffont (Coatue Management): 10,670,209 shares.
    • Warren Buffett (Berkshire Hathaway): 10,000,000 shares.
    • Chase Coleman (Tiger Global Management): 6,415,488 shares.
  • Revenue: AWS generates $115 billion annually.
  • Valuation: P/E ratio of ~12 times forecast cash flow in 2026.

Sirius XM Holdings (NASDAQ: SIRI)

  • Performance: Dropped by 45% over the trailing year.
  • Key Holder:
    • Warren Buffett (Berkshire Hathaway): 119,776,692 shares.
  • Market Position: Legal monopoly in satellite radio with subscription-based revenue model.
  • Valuation: Forward P/E ratio of ~7.

Meta Platforms (NASDAQ: META)

  • Performance: Fallen by 20% since recent highs.
  • Key Holders:
    • Chase Coleman (Tiger Global Management): 7,465,139 shares.
    • Terry Smith (Fundsmith): 4,561,352 shares.
  • User Base: 3.35 billion daily active users across platforms like Facebook and Instagram.
  • Valuation: Forward P/E ratio of ~21.

Competitive Dynamics

  • Amazon: Dominates cloud services with AWS and leverages AI for future growth.
  • Sirius XM: Benefits from stable subscription revenue, unlike ad-dependent traditional radio.
  • Meta: Leads in social media advertising and is integrating AI into its metaverse strategy.

Strategic Considerations

  • Valuation Attractiveness: All three stocks offer attractive valuations relative to historical norms.
  • Growth Prospects: Each company is positioned for long-term growth in cloud computing, subscription services, and digital advertising.

Long-Term Effects

  • Market Recovery: Historically short-lived downturns suggest potential recovery.
  • Investment Opportunities: Undervalued stocks present buying opportunities during market corrections.

Regulatory Impacts

  • Minimal Impact: No significant regulatory changes mentioned for the companies analyzed.

This analysis highlights the strategic value of these stocks amid the Nasdaq sell-off, emphasizing their competitive strengths and attractive valuations.