Daniel Loeb Trims Amazon in Q4, Boosts Nvidia after 73% Revenue Surge
In Q4, Daniel Loeb sold portions of his Amazon and Microsoft positions while boosting his Nvidia stake. He argued Microsoft’s cheaper forward earnings multiple makes it a stronger buy than Amazon, and noted Nvidia’s 73% year-over-year revenue growth at about 25x forward earnings.
1. Loeb’s Q4 Portfolio Adjustments
In the fourth quarter, billionaire hedge fund manager Daniel Loeb reduced his positions in Amazon and Microsoft while significantly increasing his stake in Nvidia. Despite the sales, Amazon and Microsoft remain among his largest holdings by value.
2. Valuation and Buy Case Analysis
Loeb cited cheaper forward earnings valuations at Microsoft compared to Amazon, suggesting stronger upside potential at the cheaper multiple. Amazon’s forward P/E remains elevated relative to peers, prompting caution.
3. Nvidia’s Growth and Valuation
Nvidia reported a 73% year-over-year revenue increase and trades at approximately 25 times forward earnings. This attractive valuation relative to growth prospects motivated Loeb to shift capital toward Nvidia shares.