David Tepper’s Appaloosa Management – Q4 2024 Top 10 Portfolio Holdings Analysis

Below is an updated snapshot of Appaloosa Management’s top 10 holdings under David Tepper for the fourth quarter of 2024. The data reflects notable moves in both Chinese and U.S. tech names, along with a strategic bet on power generation and Chinese markets.

1. Alibaba Group Holdings (BABA)

• Portfolio Allocation: 15.54%
• Recent Activity: Added 18.43%
• Shares Held: 11,843,158
• Reported Price: $84.79
• Value at Reported Price: $1,004,181,000

Alibaba remains the portfolio’s largest holding, with a substantial addition this quarter. As a leader in Chinese e-commerce and cloud services, Alibaba’s expansion underscores Tepper’s conviction in China’s consumer market and the long-term prospects of its tech sector.

2. Amazon.com Inc. (AMZN)

• Portfolio Allocation: 8.82%
• Recent Activity: Reduced 18.75%
• Shares Held: 2,600,000
• Reported Price: $219.39
• Value at Reported Price: $570,414,000

Amazon, a mainstay in U.S. e-commerce and cloud computing, saw a notable reduction. While still a significant holding, the trim may reflect profit-taking or a shift in capital toward other opportunities. Amazon’s position remains central to Tepper’s tech exposure, given its global leadership in online retail and AWS.

3. Pinduoduo Inc. (PDD)

• Portfolio Allocation: 8.04%
• Recent Activity: Added 1.04%
• Shares Held: 5,356,132
• Reported Price: $96.99
• Value at Reported Price: $519,491,000

Pinduoduo, another major Chinese e-commerce player, saw a modest increase in shares. Known for its innovative social commerce model, PDD continues to benefit from China’s expanding digital retail landscape. The addition suggests Tepper remains bullish on China’s consumer sector despite potential market volatility.

4. Microsoft Corp. (MSFT)

• Portfolio Allocation: 6.33%
• Recent Activity: No change reported
• Shares Held: 970,000
• Reported Price: $421.50
• Value at Reported Price: $408,855,000

Microsoft’s stake remains steady this quarter. A core holding for Appaloosa, Microsoft’s diversified revenue streams—spanning cloud computing (Azure), enterprise software, and AI—offer stable growth. This unchanged position indicates continued confidence in Microsoft’s leadership within the tech space.

5. Vistra Corp. (VST)

• Portfolio Allocation: 5.76%
• Recent Activity: Added 112.53%
• Shares Held: 2,700,000
• Reported Price: $137.87
• Value at Reported Price: $372,249,000

Vistra, an integrated power generation and retail electricity provider, saw a substantial increase. This move reflects Tepper’s interest in the energy and utilities space, potentially aiming to capitalize on stable cash flows and the ongoing demand for reliable power solutions.

6. JD.com Inc. (JD)

• Portfolio Allocation: 5.61%
• Recent Activity: Added 43.37%
• Shares Held: 10,465,885
• Reported Price: $34.67
• Value at Reported Price: $362,852,000

JD.com is yet another major Chinese e-commerce stake that Appaloosa boosted significantly. JD’s extensive logistics network and trusted consumer brand position it as a key beneficiary of rising online consumption in China. The addition underscores Tepper’s broader thesis on China’s tech-driven consumer growth.

7. Alphabet Inc. CL C (GOOG)

• Portfolio Allocation: 5.54%
• Recent Activity: Reduced 0.00% (No material change)
• Shares Held: 1,881,963
• Reported Price: $190.44
• Value at Reported Price: $358,401,000

Alphabet, parent of Google and YouTube, remains a cornerstone in digital advertising, cloud computing, and AI research. The minimal change in shares indicates Tepper’s continued confidence in Alphabet’s diverse revenue streams and market dominance, while possibly fine-tuning exposure elsewhere.

8. Meta Platforms Inc. (META)

• Portfolio Allocation: 4.44%
• Recent Activity: Reduced 21.60%
• Shares Held: 490,000
• Reported Price: $585.51
• Value at Reported Price: $286,900,000

Meta Platforms (formerly Facebook) saw a notable cut. Despite this reduction, Meta remains an important holding, reflecting Tepper’s ongoing belief in social media, digital advertising, and the company’s pivot into virtual reality. The trim may reflect profit-taking following Meta’s strong performance or caution regarding its valuations.

9. Oracle Corp. (ORCL)

• Portfolio Allocation: 3.61%
• Recent Activity: Reduced 11.02%
• Shares Held: 1,400,000
• Reported Price: $166.64
• Value at Reported Price: $233,296,000

Oracle, a leader in enterprise software and cloud solutions, experienced a moderate reduction. Though still a key tech holding, the cut could indicate Tepper’s desire to rebalance within the broader tech sector. Oracle’s consistent performance in database management and cloud services continues to attract investor interest.

10. iShares China Large Cap ETF (FXI)

• Portfolio Allocation: 3.13%
• Recent Activity: Added 13.75%
• Shares Held: 6,637,128
• Reported Price: $30.44
• Value at Reported Price: $202,034,000

Appaloosa’s increased position in FXI, an ETF tracking large-cap Chinese equities, underscores Tepper’s broad bullishness on China’s market. By diversifying into an ETF, he gains exposure to various leading Chinese companies beyond individual e-commerce or tech names, hedging some of the single-stock risk.

Analysis of David Tepper’s Q4 2024 Portfolio Strategy

1.  Reinforced Bet on Chinese Markets
Alibaba, Pinduoduo, JD.com, and the iShares China Large Cap ETF collectively highlight Tepper’s conviction in China’s consumer and tech sectors. Substantial increases in Vistra (U.S. energy) also indicate a preference for stable, potentially undervalued plays.

2.  Selective Reductions in U.S. Tech
Amazon, Meta, and Oracle all saw meaningful cuts, suggesting Tepper is locking in gains or moderating exposure to higher-valuation segments. Microsoft and Alphabet remain core holdings, signaling continued faith in established U.S. tech leaders.

3.  Balancing Growth with Defensive Plays
The jump in Vistra, a utility-like energy provider, points to a desire for more predictable cash flows alongside higher-growth e-commerce and cloud companies. This dual approach aims to cushion volatility while maintaining upside potential.

Conclusion

David Tepper’s Q4 2024 portfolio underscores a strong focus on Chinese e-commerce (Alibaba, Pinduoduo, JD.com) and a balanced approach in U.S. tech, with selective trimming of high-valuation names (Amazon, Meta, Oracle) and stability-oriented additions like Vistra. Overall, Appaloosa Management’s moves reflect Tepper’s strategy of capturing growth in rapidly expanding markets while rebalancing risk across more defensive holdings and broad-based exposure to China’s equity landscape.

Disclaimer:
This analysis is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investing involves risks, including the potential loss of principal. Past performance is not indicative of future results. Investors should conduct their own research or consult a qualified financial advisor before making investment decisions.