David Tepper’s Appaloosa Management Q3 2024 top 10 portfolio holdings analysis

BABA – Alibaba Group Holdings
Portfolio Allocation: 15.76%
Recent Activity: Reduced 4.76%
Shares Held: 10,000,000
Reported Price: $106.12 per share
Value at Reported Price: $1,061,200,000

Alibaba remains the largest position in Tepper’s portfolio, though there was a slight reduction in shares. Alibaba, a leader in e-commerce and cloud computing in China, aligns with Tepper’s interest in high-growth tech companies. This reduction may reflect cautious rebalancing.

PDD – Pinduoduo Inc.
Portfolio Allocation: 10.62%
Recent Activity: Added 173.25%
Shares Held: 5,301,132
Reported Price: $134.81 per share
Value at Reported Price: $714,646,000

Pinduoduo saw a significant increase, indicating strong confidence in its potential. As a major Chinese e-commerce platform focused on social commerce, Pinduoduo benefits from increasing consumer spending and digital engagement in China.

AMZN – Amazon.com Inc.
Portfolio Allocation: 8.86%
Recent Activity: Reduced 7.91%
Shares Held: 3,200,000
Reported Price: $186.33 per share
Value at Reported Price: $596,256,000

Amazon, a leader in e-commerce and cloud computing, is a key holding but saw a reduction. Amazon’s position aligns with Appaloosa’s focus on high-growth tech and retail sectors, though the reduction may indicate profit-taking or risk management.

MSFT – Microsoft Corp.
Portfolio Allocation: 6.2%
Recent Activity: Reduced 17.89%
Shares Held: 970,000
Reported Price: $430.30 per share
Value at Reported Price: $417,391,000

Microsoft saw a notable reduction, though it remains a core holding. Known for its dominance in cloud computing, software, and AI, Microsoft represents stable growth, but the decrease may suggest portfolio rebalancing.

META – Meta Platforms Inc.
Portfolio Allocation: 5.31%
Recent Activity: Reduced 33.16%
Shares Held: 625,000
Reported Price: $572.44 per share
Value at Reported Price: $357,775,000

Meta Platforms saw a significant reduction in shares. As the parent company of Facebook, Instagram, and WhatsApp, Meta’s focus on digital advertising and virtual reality aligns with Tepper’s tech interests, though the large cut may indicate caution around tech valuations.

GOOG – Alphabet Inc. CL C
Portfolio Allocation: 4.67%
Recent Activity: Reduced 2.24%
Shares Held: 1,881,964
Reported Price: $167.19 per share
Value at Reported Price: $314,646,000

Alphabet, the parent company of Google, remains a major tech holding. Alphabet’s strong presence in digital advertising and cloud computing aligns with Tepper’s tech-focused strategy, with the minor reduction possibly reflecting portfolio adjustments.

JD – JD.com Inc.
Portfolio Allocation: 4.34%
Recent Activity: Added 69.35%
Shares Held: 7,300,000
Reported Price: $40.00 per share
Value at Reported Price: $292,000,000

JD.com, another Chinese e-commerce giant, saw a substantial increase, indicating Tepper’s growing interest in China’s online retail sector. JD.com’s logistics network and market position make it a compelling growth investment in the portfolio.

ORCL – Oracle Corp.
Portfolio Allocation: 3.98%
Recent Activity: Reduced 21.33%
Shares Held: 1,573,394
Reported Price: $170.40 per share
Value at Reported Price: $268,106,000

Oracle, a leader in enterprise software and cloud services, saw a significant reduction. Oracle’s steady performance in the cloud and database management sectors supports Tepper’s tech focus, though the cut suggests a shift to other tech investments.

LYFT – Lyft Inc.
Portfolio Allocation: 2.98%
Recent Activity: Added 97.83%
Shares Held: 15,750,000
Reported Price: $12.75 per share
Value at Reported Price: $200,813,000

Lyft saw a large increase, nearly doubling the position. As a major ridesharing company, Lyft aligns with Tepper’s interest in consumer tech and the transportation sector. The increase indicates optimism in a potential recovery in urban mobility and ridesharing.

AMD – Advanced Micro Devices
Portfolio Allocation: 2.77%
Recent Activity: Reduced 17.15%
Shares Held: 1,135,000
Reported Price: $164.08 per share
Value at Reported Price: $186,231,000

AMD, a leading semiconductor company, saw a reduction in shares. AMD’s position reflects Tepper’s focus on high-growth tech, particularly in gaming, data centers, and AI, though the cut may signal caution amid market volatility in the semiconductor industry.

Analysis of David Tepper’s Q3 2024 Portfolio Strategy

1. Strong Focus on Chinese E-Commerce and Tech
Alibaba, Pinduoduo, and JD.com represent substantial holdings, showcasing Tepper’s interest in China’s digital economy. The large addition to Pinduoduo and JD.com reflects a high-conviction bet on China’s growth potential.

2. Selective Reductions in U.S. Tech Giants
Reductions in Amazon, Microsoft, Meta, and Alphabet suggest a strategic rebalancing within high-growth U.S. tech stocks. These adjustments may indicate Tepper’s cautious approach to current tech valuations while maintaining core positions.

3. Significant Increase in Lyft and Interest in Consumer Tech
The nearly doubled position in Lyft points to optimism in a post-pandemic recovery for the ridesharing sector, along with Tepper’s continued interest in consumer-focused technology.

Conclusion
David Tepper’s Q3 2024 portfolio for Appaloosa Management highlights a high-conviction approach with a focus on Chinese e-commerce and select U.S. tech giants. With strategic reductions in high-valuation tech stocks and notable additions in ridesharing and Chinese digital commerce, the portfolio reflects a balanced strategy aimed at capturing growth in both established and emerging markets.