Atlassian Corp. Plc. (TEAM) experienced soaring growth over the past three months, dramatically outperforming the S&P 500. The software company was added to the WhaleWisdom Heatmap in the third quarter of 2021 and achieved an impressive number one rating. Hedge funds were actively buying, and Atlassian’s stock rose by approximately 244.3% over the past 2-years, compared to the S&P’s gain of about 50.7%.

Atlassian is an Australian software company that operates through subsidiaries based around the world. Some well-known subsidiaries include Atlassian, Inc., which develops application software for communication, collaboration, tracking, management, and developmental solutions, and OpsGenie, Inc., a leader in incident alerts and on-call schedule management. Atlassian Pty. Ltd is another subsidiary focused on issue tracking and collaboration that offers tools for software development teams to create, build and launch products. Atlassian has generally fared well during the coronavirus pandemic. As much of the workforce shifted to remote work, Atlassian’s collaboration and management tools such as Jira and Trello provided needed flexibility.

Hedge Funds Take Notice

Atlassian garnered the attention of hedge fund managers, and in the third quarter, aggregate 13F shares increased to about 43.8 million from 41.2 million, representing an increase of approximately 6.3%. Of the hedge funds, 32 created new positions, 65 added to an existing holding, 24 exited, and 60 reduced their stakes. In contrast, Institutions were selling, with aggregate holdings decreasing by about 117.2 million to approximately 117.2 million from 118 million. Also, the 13F metrics between 2019 and 2021 suggest that Atlassian’s investment potential has been solid and consistent.

(WhaleWisdom)

Favorable Forecasts

Analysts are optimistic about the stock and raising price targets. BMO Capital Markets analyst Keith Bachman kept a Market Perform rating on shares while raising the firm’s price target on Atlassian to $515 from $345. Bachman shared that the company has been successfully navigating its transition to the cloud, meeting user needs, and has the potential to increase prices modestly in the future. Joel Fishbein of Truist Financial raised the firm’s price target on Atlassian to $500 from $400 and kept a Hold rating on shares, noting long-term opportunities for growth in the cloud. Analysts from Baird and Oppenheimer & Co. both kept Outperform ratings on Atlassian’s shares and raised price targets. Baird increased their price target to $520 and Oppenheimer to $500, with both firms speaking to smooth customer migrations to the cloud. Canaccord Genuity analyst David Hynes kept a Buy rating on shares and raised the firm’s price target on Atlassian to $500 to $325 due to increased expectations for subscription growth.

(WhaleWisdom)

Encouraging Estimates

Atlassian’s shares are up, and analysts expect to see revenue continue to rise over the next two years for the software company, with increases in growth from 2022 to 2023 that could bring earnings to $1.60 by June 2022 and $2.06 by June 2023. This prediction for strong growth may also bring revenue to an estimated $2.6 billion in 2022 and approximately $3.2 billion in 2023. Atlassian also announced In October 2021 that the first quarter subscription revenue was up 57% and has raised expectations for continued revenue growth.

Bright Outlook

Atlassian’s year-to-date growth is certainly encouraging for investors, and multi-year estimates speak to the stock’s potential for long-term growth. The software company continues to thrive through the pandemic. Analysts’ ratings and outlooks present an attractive opportunity for investors.

Tesla Inc. (TSLA) experienced soaring growth over the past year, dramatically outperforming the S&P 500. The green energy company and electric vehicle manufacturer moved up on the WhaleWisdom Heatmap to a ranking of seventeen from twenty-nine. However, hedge funds and institutions were selling despite Tesla’s remarkable gains in the second quarter. Additionally, the stock has gotten some extra media attention from co-founder Elon Musk on his plans to sell 10% of holdings. Tesla’s stock rose by approximately 1,373.2% as of November 2021, compared to the S&P’s gain of about 51.3% over the past 2-years.

Tesla is a clean energy company well known for its design and manufacture of electric vehicles (EV), battery energy storage, solar energy systems, and related services. The company is led by Elon Musk and periodically collaborates with Musk’s other business ventures, such as SpaceX and the Boring Company. These collaborations offer Tesla unique marketing opportunities and additional revenue. Also, Tesla fared well during the coronavirus pandemic as it continued to see high sales. While Tesla may have to navigate supply-chain challenges because of the pandemic, they continue to see strong interest and demand for EVs and supercharging stations.

Hedge Funds Reduce Shares

In the second quarter of 2021, Tesla’s shares lost traction as hedge funds and institutions decreased shares in their portfolios. The aggregate 13F shares held by hedge funds decreased to about 60.5 million from 63.4 million, a change of approximately 4.6%. Reviewing hedge funds, 33 created new positions, 131 added to an existing holding, 29 exited, and 120 reduced their stakes. Overall, institutions were selling and lowered their aggregate holdings by about 0.8% to approximately 394.5 million from 397.5 million.

(WhaleWisdom)

Favorable Estimates

Analysts estimate that year-over-year increases will bring earnings to $8.36 per share by December 2022, up from December 2021’s predicted $6.14 in earnings. Revenue estimates are also encouraging at approximately $51.2 billion by December 2021 and rising to about $70.6 billion by December 2022. The long-term 13F metrics between 2010 and 2021 demonstrate that Tesla’s investment potential remains on an upward trend.

(WhaleWisdom)

Optimism Amid Stock Sales

Many analysts are reacting to a combination of stock value changes and Musk’s recent announcement about selling 10% of his ownership in Tesla. Musk leveraged social media to conduct a Twitter poll to influence his decision to sell shares, and the highly publicized poll garnered a fair amount of attention. While Musk’s announcement did cause the stock value to dip slightly in November, mainly after he sold about $5 billion in shares, many analysts are optimistic about the stock’s rebound. Bank of America analyst John Murphy kept a neutral rating on the shares and raised his firm’s price target to $1200 from $1000. There’s some expectation that Tesla’s value will increase once Musk completes the sale of 10% of the stock, and so Daniel Ives of Wedbush Securities gave Tesla an Outperform rating and price target of $1,100.

Positive Outlook

Tesla’s impressive growth and analysts’ estimates through 2022 are encouraging. Tesla has brand recognition that continues to be bolstered through its EV segment and Musk’s other businesses endeavors. The company has great appeal with a growing volume of eco-conscious consumers in favor of clean energy alternatives. The stock’s trends suggest a favorable long-term opportunity for investors.

Workday, Inc. (WDAY) saw improved performance recently and overall outpaced the S&P 500, rising by approximately 78.5% as of November 2021, compared to the S&P’s gain of about 52.7% over the past 2-years. However, hedge funds were selling the stock in the second quarter, and this cloud-based company fell on the WhaleWisdom Heatmap to a ranking of forty-four from ten.

Workday provides enterprise cloud applications for finance and human resources to help businesses manage critical functions and optimize their financial and human capital resources. Workday’s applications assist companies, educational institutions, and government agencies with everything from accounting functions to procurement, time tracking, and talent management. Throughout the coronavirus pandemic, Workday has been able to leverage the accessibility and flexibility of its cloud-based applications to promote its value in helping businesses navigate dynamic workforces and changing needs.

Mixed Results from Hedge Funds and Institutions

Workday saw increased interest from institutions while hedge funds were selling in the second quarter. The aggregate 13F shares held by hedge funds decreased to about 61.5 million from 61.6 million, a decrease of approximately 0.2%. Of the hedge funds, 33 created new positions, 86 added to an existing holding, 23 exited, and 62 reduced their stakes. Institutions were buying and increased their aggregate holdings by about 1.3% to approximately 170.7 million from 168.5 million.

(WhaleWisdom)

Estimates Vary

Analysts expect revenue to rise over the next two years, with increases in growth predicted to bring revenue to $5.1 billion by January 2022 and $6.1 billion by January 2023. Year-over-year earnings estimates are not as consistent as revenue, with $3.54 per share predicted by 2023, down from an estimated $3.66 per share in 2022. While earnings are expected to dip in 2023, the 13F metrics between 2019 and 2021 suggest that Workday remains on a gradual, upward trend among investors despite the fundamental outlook.

(WhaleWisdom)

Analysts Share Favorable Ratings

Analyst Scott Berg from Needham & Co. raised his firm’s price target on Workday to $310 from $290, maintaining a Buy rating on the stock. Berg believes that Workday can maintain a healthy level of subscription revenue growth of at least 20%. Daiwa Capital Markets initiated coverage of Workday with a $320 price target and a Buy rating. Analyst Robert Simmons of DA Davidson initiated coverage with a Buy rating and set a $300 price target on shares. Simmons expressed confidence in the company’s ability to sustain subscriber growth, citing Workday’s dominance in Cloud HCM and increased international investments. Deutsche Bank analyst Brad Zelnick also gave Workday a Buy rating and set a $360 price target, looking past the stock’s underperformance with optimism for the future.

Optimism Beyond 2021

Workday saw growth over the past year, following an upward trend through the pandemic. While the stock may be underperforming, analysts share their optimism through Buy ratings. With continued demand for applications that enable businesses to optimize their financial and human capital resources, Workday’s business model and stock hold promise beyond 2021 for patient investors.

PayPal Holdings, Inc. (PYPL) has experienced volatility in the market over the past year. Despite fluctuations in growth, the electronic commerce company continues to outpace the S&P 500. PayPal rose by approximately 122.5% compared to the S&P’s gain of about 51.2% over the past two years and rose on the WhaleWisdom Heatmap to a ranking of twenty-three.

PayPal operates an electronic payments system to facilitate convenient and secure e-commerce for small businesses and consumers. Customers can use its platform to both send and receive funds, connecting personal and business credit cards and bank accounts to the platform to ensure smooth online money transfers. Much of PayPal’s revenue is through transaction fees and service subscriptions. The company also offers financial services such as PayPal Credit, shipping services, and various e-commerce payment solutions beyond its PayPal platform, such as Venmo and Xoom.

(WhaleWisdom)

Hedge Funds and Institutions Sell

Hedge Funds adjusted their portfolios, and the aggregate 13F shares held decreased to approximately $206.1 million from 211.9 million, a slide of about 2.7%. Overall, 46 hedge funds created new positions, 194 added to an existing one, 48 exited, and 191 reduced their stakes. Institutions were also selling and lowered their holdings by about 0.2% to $925.7 million.

(WhaleWisdom)

Encouraging Multi-year Estimates

Analysts expect to see earnings rise, with increases in growth from 2021 to 2023 spanning from approximately 21.6% to 25.3% per year. These year-over-year estimated increases could bring earnings to $7.39 per share by December 2023, up from a predicted $4.72 and $5.91 for 2021 and 2022, consecutively. Year-over-year growth is also estimated to bring revenue to approximately $38.2 billion by December 2023, up from an estimated $25.8 billion in December 2021.

Rumors Cause Analyst Buzz

PayPal’s recent investment interest in Pinterest caused quite a buzz among analysts and investors, with rumors and business critiques flowing both before and after PayPal announced that it wasn’t pursuing an acquisition. Pinterest is a social media company known for image sharing through online pinboards, and some analysts such as Truist Financial’s Andrew Jeffrey could not find logic in the possible acquisition. The Wall Street Journal also shared that PayPal’s recent market decline could have jeopardized a potential deal since a purchase would involve its stock. In addition to the potential Pinterest acquisition, there has been chatter about PayPal’s use of customers’ financial data. PayPal is one of several companies selected for inquiries by the Consumer Financial Protection Bureau due to concerns about how technology companies use and protect financial data. While recent rumors may have clouded investor perception, it is clear that demand remains strong for secure, convenient electronic money transfer applications.

Cause for Cautious Optimism

PayPal is a company to watch, with a good track record of growth and a strong presence in e-commerce payment services. While hedge funds and institutions were selling shares, PayPal continued to outperform the S&P 500. New investors may be hesitant to acquire the stock, while current shareholders may be motivated to hold shares given optimistic future earnings estimates and PayPal’s potential for continued growth.

Nvidia, Corp. (NVDA) saw significant growth over the past 2-years, outperforming the S&P 500 and rising by approximately 364.7% compared to the S&P’s gain of about 51.7%. Hedge funds were selling, though the stock achieved a ranking of eighteen on the WhaleWisdom Heatmap.

Nvidia is a global technology company that manufactures graphics processors, chipsets for computers, and other multimedia software. The company operates through a Graphics Processing Unit and Tegra Processors segment. Its product line generates graphics on everything from personal computers and workstations to mobile devices. Nvidia is well known for its graphics processing unit (GPU) technology that serves as an essential element of personal computer design and is a significant source of revenue for the company. As Nvidia furthers its expansion into artificial intelligence technologies, there are further opportunities for financial growth.

Hedge Funds Trim Portfolios

Hedge funds were selling in the second quarter of 2021, and the aggregate 13F shares held decreased approximately 4.0% to about 279.5 million from 291.0 million. Of the hedge funds, 54 created new positions, 154 added to existing holdings, 33 exited, and 170 reduced their stakes. In contrast, institutions were buying and increased their aggregate holdings by about 4.3% to approximately 1.7 billion from 1.6 billion. The long-term 13F metrics between 2001 and 2021 show that Nvidia continues upward, with the investor base continually growing in size.

(WhaleWisdom)

Positive Multi-year Estimates

Analysts anticipate that earnings will rise from 2022 through 2024, ranging between 11.5% to 62.3% in year-over-year growth. This growth could bring earnings to $4.06 by January of 2022, $4.54 by 2023, and $5.06 by 2024. Revenue estimates also include healthy year-over-year growth across the next three years that could bring revenue to approximately $33.3 billion by January 2024

(WhaleWisdom)

Analysts Overall Are Optimistic

Analyst John Vinh of KeyBanc raised the firm’s price target on Nvidia to $260 from $245 and kept an Overweight rating on shares. Summit Insights Group raised Nvidia to a Buy rating after a solid finish to the second quarter and encouraging demand in cryptocurrency mining and the gaming markets.

Positive Outlook

Nvidia’s stock trends have caught the attention of analysts and investors, who recognize that business opportunities also lie ahead for continued growth. While Nvidia has its fair share of competition from tech companies and faces some challenges from supply disruption, future estimates for revenue and earnings should be encouraging for investors.