Booking Holdings, Inc. (BKNG) has traveled along a rocky path in 2020. However, despite being deeply impacted by the coronavirus pandemic’s whirlwind, the online travel company was added to the WhaleWisdom Whale Index on May 18, though not yet on the WhaleWisdom Heatmap.

Booking owns and operates several travel fare search engines, providing customers with deals on everything from hotel rooms and car rentals to airline tickets. Booking is often known for its namesake, Booking.com, but it operates several other businesses such as Priceline.com and OpenTable.

Hedge Funds Are Buying

Booking appears to have faced the pandemic’s interference with the hospitality and travel industries head-on and is on track to ride out the storm. Hedge Funds were actively buying the stock in the first quarter, and the aggregate 13F shares held by hedge funds increased to approximately 14.1 million from 13.1 million, an increase of about 8.1%. Overall, for hedge funds, 56 created new positions, 88 added to existing holdings, 61 closed exited, and 96 reduced their position. In contrast, Institutions decreased their aggregate holdings by about 0.6% to 37.6 million from 37.9 million.

(WhaleWisdom)

Positive Estimates

Analysts expect to see an initial decline in revenue for 2020, but also anticipate a three-year positive trend to follow, beginning with year over year growth of about 66.2% for 2021. These year-over-year estimate increases could bring growth to over $16 billion in revenue and earnings per share at $129.86 by the end of 2023, up considerably from its forecasted value of $14.37 by the end of 2020.

Amidst the Current Clouds, Analysts Predict Sunny Skies Ahead

Morgan Stanley’s analyst, Brian Nowak, has a favorable outlook for Booking’s stock and raised the company’s price target to $1,560 from $1,030. BTIG Investment Banking’s analyst, Jake Fuller, cited a consensus calling for a V-shaped recovery and gave Booking a Neutral rating. Wedbush Securities’ analyst, James Hardiman, also has a Neutral rating on Booking and predicts that the company will recover into a stronger position over the next few years.

Optimism Beyond 2020

While 2020 has had its share of tough months for Booking, analysts are optimistic about the future. Customer demand for travel and restaurant dining will return, and while the pace may be slow, it seems inevitable that the use of Bookings’ various reservation tools will occur. Booking has gained some upward traction in recent months and holds promise beyond 2020 for patient investors.

Baidu, Inc.’s (BIDU) stock has rebounded in recent months after a rocky start to 2020. The Chinese technology company was recently added to the WhaleWisdom Whale Index. Though not on the WhaleWisdom Heatmap, Baidu’s increasing profits and addition to the Index may indicate a potential turn around for the technology company.

Baidu is a leading Chinese technology company specializing in internet search services and one of the largest providers of artificial intelligence (AI) products in the world. The company appears to have faced and moved beyond the negative impact of China’s economic slowdown and other business challenges related to the coronavirus outbreak. The pandemic also places unique opportunities for the company as industries such as healthcare may be seeking out AI to streamline processes.

Mixed Results from Hedge Funds and Institutions

Baidu has caught the attention of hedge fund managers. Looking at first quarter activity by the top hedge funds, the aggregate 13F shares held improved to about 73.9 million from 73.5 million, an increase of approximately 0.6%. Of the hedge funds, 21 created new positions, 51 added to an existing holding, 37 exited, and 56 reduced their stake. In slight contrast to hedge funds, institutions were selling. Overall, institutions decreased their aggregate holdings by about 1.1%, to approximately 183.3 million from 185.2 million.

(Whale Wisdom)

Positive Multi-year Estimates

Analysts expect to see earnings initially fall in 2020, but also anticipate a rise in 2021 and 2022 of approximately 28.1% and 21.3%, respectively. These significant year-over-year estimated increases would bring earnings to $10.23 per share in 2022, up from $6.59 for 2020.

Favorable Forecasts

With Baidu’s July announcement that it will construct new infrastructure for a future smart economy, excitement builds, and Baidu is seen as a significant driver for China’s future economic development. Baidu plans to increase investments in areas such as cloud computing, AI, blockchain, and data centers. Even more impressive is that under the new infrastructure, Baidu has set the goal of five million intelligent cloud servers by 2030, with about five million trained AI professionals supporting them.

Mizuho Financial Group’s analyst, James Lee, has a favorable outlook for Baidu’s stock, likely recognizing that the demand for internet, cloud computing, and AI technology continues to be high. Lee maintains a buy rating on shares with a $175 price target.

Positive Outlook

Baidu’s recent profit growth and future estimates are certainly encouraging for investors, especially after a rough start to the year. Baidu also appears well-positioned to act upon new demand for its technology, though time will tell as to whether the forward momentum continues.

DocuSign Inc.’s (DOCU) stock displayed steady performance so far in 2020, with a solid rise that allowed it to effortlessly outperform the S&P 500, rising by approximately 151.7% over six months in comparison to the S&P 500’s loss of about 3.1%. It’s no surprise that DocuSign’s impressive value increase caused it to be added to the WhaleWisdom Heat Index 100 v2.0.

The worldwide provider of electronic signature solutions has faired quite well amidst economic volatility caused by the coronavirus pandemic. One likely factor for the stock’s strong performance is that its signature solutions are incredibly helpful for a variety of businesses and customers to move forward with signing contracts and agreements during a time of social distancing.

Hedge Funds Are Active

Both hedge funds and institutions were actively buying DocuSign’s stock in the first quarter, helping it to land on the WhaleWisdom Whale Index and further increase its aggregate share value. During the first quarter, the total 13F shares held by hedge funds increased to approximately 44.3 million, from about 42.9 million, an increase of almost 3.2%. Institutions also saw a rise, with an increase of roughly 0.5%, as institutional ownership increased to approximately 145 million from 144.4 million.

(WhaleWisdom)

Encouraging Forecasts

Analysts’ views and estimates for the company are quite favorable. Estimates are for DocuSign’s revenue to grow in fiscal 2021 by 35.1% to $1.32 billion. Meanwhile, the company’s earnings are forecast to grow by 54.3% to $0.48. Earnings are estimated to nearly triple by fiscal 2023 to $1.42 per share.

Wedbush Securities, Inc. remains bullish on the company, after DocuSign’s strong first quarter earnings. The firm referenced the stock’s value proposition around its core e-signature solution in the coronavirus environment is resonating with many businesses as the practice of working from home remains in place for the foreseeable future. Meanwhile, Oppenheimer & Co. Inc. views DocuSign as a core investment holding, giving it a $200 price target. Additionally, DocuSign jumped saw additional gains after the announcement that they would be added to the Nasdaq 100.

Bright Outlook Ahead

DocuSign is well-positioned to benefit from continued demand for its electronic signature solutions. Fiscal 2021 is off to a strong start with a robust performance in its first fiscal quarter ending April 20, 2020. With the continued potential for growth, the future looks bright for investors of this stock and the company regardless of how long the pandemic may or may not last.

Shopify, Inc. (SHOP) has seen upward momentum primarily so far in 2020, steadily outperforming the S&P 500 and rising by approximately 130.9% over the past six months, in stark comparison to the S&P 500’s loss of about 4.6%.

However, despite the stock’s continued rise, hedge funds were selling the equity in the first quarter. This e-commerce company consequentially saw a drop in its ranking on the WhaleWisdom Heatmap.

Hedge Funds Are Selling

Hedge funds were selling the stock in the first quarter, and Shopify fell to 39 from a prior ranking of 14 on the WhaleWisdom Heatmap. Of hedge funds, 30 created new positions, 37 added to existing stakes, 15 exited, and 57 reduced their holdings.

(WhaleWisdom)

Shopify has been fortunate to see strong price growth in recent months. Still, the company is not immune to the uncertainty of the coronavirus pandemic and its impact on the stock market, which is likely to play a part in hedge funds’ actions. During the quarter, the aggregate 13F shares held by hedge funds decreased to approximately 27.5 million from 29.8 million, a drop of about 7.7%. Institutions had a slightly more favorable view of Shopify, increasing their aggregate holdings by about 0.6%, to approximately 71.1 million from 70.7 million.

(WhaleWisdom)

Analysts’ Estimates Are Encouraging

Analysts’ consensus estimates for Shopify show overall faith in the long term outlook. Piper Sandler Companies lifted Shopify to an Overweight rating from Neutral, citing that the digital business is well-positioned for the future. Piper also noted that digital commerce penetration rates could double or triple post-pandemic. RBC Capital Markets has maintained its outperform rating and given the stock a price target of $1,000. While ratings vary among analysts, strong cases made by analysts such as Piper and RBC offer compelling reasons for the equity to rise further.

Favorable Outlook

While 2020 started reasonably well for Shopify, it is understandable why some hedge funds have sold. However, despite the turmoil and uncertainty brought along by the coronavirus pandemic, it is clear that many companies like Shopify have shown growth over the past few months. Weathering the pandemic is no easy feat, but Shopify appears to be thriving, at least in part due to its ability to recognize and adapt to changing consumer needs. It makes the company well-positioned to continue to benefit from the demand for digital e-commerce during and after the coronavirus pandemic.

Microsoft Corp. (MSFT) has seen relatively steady demand and increasing value so far for 2020, with the stock rising by about 23.7%, a stunning performance when compared to the S&P 500’s loss of approximately 3.6%. Overall, analysts have been bullish on the stock, increasing their price targets.

Moving Up The Heatmap

Hedge funds were buying the stock in the first quarter, helping Microsoft to elevate itself on the WhaleWisdom HeatMap by rising to 11 from a previous ranking of 15. As an established provider of software products and services, Microsoft appears to have been minimally affected by the Coronavirus pandemic. In contrast, many other companies and industries have seen a negative impact. It is certainly understandable that Microsoft’s value would remain strong during a time when businesses have been driven to increase remote work and online collaboration dramatically. Educational institutions have been forced to implement remote learning, and even video games have garnered more attention as a variety of ages look for additional entertainment outlets within the safety of their homes.

(WhaleWisdom Heatmap)

Hedge Funds Are Active

Hedge funds were buying in the first quarter, as aggregate 13F shares increased to approximately 1.84 billion from around 1.76 billion, an increase of about 4.5%. In slight contrast, institutions saw a mild decrease of about 2.8%, with the aggregate 13F shares, held decreasing to approximately 5.3 billion from 5.5 billion. Overall, 79 hedge funds created new positions, 231 added to an existing one, 21 closed out their stakes, and 303 reduced their holdings.

(WhaleWisdom)

Favorable Forecasts

Microsoft’s business outlook for June 2020 is favorable, with analysts estimating revenue to grow by about 12.4% year over year growth. The company’s earnings are also encouraging, with earnings per share estimates of $5.69 for 2020, and expectations for future growth to span from about 9.1% to 21% over the next three fiscal years.

Analysts have a favorable outlook for the company, raising price targets. Wells Fargo & Co. recently lifted its twelve-month price target on Microsoft to $250. Baird & Co. is also positive on the company partly due to the big success of Microsoft Teams in facilitating remote collaboration.

Positive Outlook

2020 has begun well for Microsoft. To date, the company has weathered the Coronavirus storm and continued to support its customers as they adapt to a world with more remote focused business and interaction. With its financial track record and potential for growth, there’s an excellent opportunity for hedge funds and institutions to be rewarded.