In this article, we discuss the 10 stocks to buy now in the Mark Cuban stock portfolio. If you want to read about some more stocks in the Mark Cuban portfolio, go directly to Mark Cuban Stock Portfolio: 5 Stocks To Buy Now.
Mark Cuban, the famous angel investor, entrepreneur, and television personality, is perhaps most commonly associated with his appearances on a startup funding show called Shark Tank that airs on media house ABC in the US. However, it is no secret that Cuban has turned his incredibly risky investments from the show, and those in his portfolio, into a billion dollar business empire in the past few decades. According to a list of richest men in the US maintained by Forbes magazine, the present net worth of Cuban is close to $5 billion.
Mark Cuban first rose to fame in the finance world after selling his video portal Broadcast.com to Yahoo for $5.7 billion in 1999. Cuban had founded the company just two years prior to selling it, a feat that earned him legendary status on Wall Street. Since his first big score, Cuban has continued to invest in successful businesses, mostly funding startups with mission statements, and also bought NBA team Dallas Mavericks. Cuban has also become a finance guru during the time, accurately predicting the ebb and flow of the markets.
Earlier this year, Cuban explained that he was selling stocks in his portfolio due to concerns about overvaluation in several asset classes. In March 2022, interest rates hit 4% for the first time in three years. Just three months later, in June, the Wall Street Journal declared an official bear market, just as Cuban had predicted. Cuban has built an ardent fan-following over the past few years because of his television persona and an active presence on social media, especially on social networking platform Twitter that was recently bought by Elon Musk.
It is important to clarify that the stocks listed below were picked from the public comments that Cuban has made on these firms. He has explicitly mentioned some of his private holdings during these public appearances while only alluding to others. However, based on a careful assessment of the comments, the stocks listed below largely align with his investment philosophy.
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10. GameStop Corp. (NYSE:GME)
Number of Hedge Fund Holders: 17
GameStop Corp. (NYSE:GME) is a specialty retailer that provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe. On September 7, GameStop Cop reported that revenue for the second quarter fell 4.0% to $1.14 billion. Hardware and accessories sales accounted for 52.5% of total sales vs 51.5% a year ago, where software sales fell to 27.9% from 33.5% last year. In February last year, Cuban said that WallStreetBets, one of the most influential platforms on Reddit, was changing how the market functioned, advising users on the platform to hold onto GameStop Corp. (NYSE:GME) shares to benefit the firm in the long term.
On October 13, Jefferies analyst Andrew Uerkwitz took over coverage of GameStop Corp. (NYSE:GME) stock with a Hold rating and $26 price target, noting that the Interactive Entertainment Team took over lead coverage of Toys & Entertainment Products as a step towards the industry’s evolution.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in GameStop Corp. (NYSE:GME) with 2 million shares worth more than $252 million.
In its Q2 2022 investor letter, Bireme Capital, an asset management firm, highlighted a few stocks and GameStop Corp. (NYSE:GME) was one of them. Here is what the fund said:
“Amazingly, GameStop Corp. (NYSE:GME) is one of our only short positions to not fall in 2022. The stock trades at an $11.5b market cap, exceeding its pre-pandemic peak by billions of dollars. This is even though revenue is down 30% from the peak, gross margins are down 1500 bps, and the company has generated a negative free cash outflow of $700m in the last four quarters (we had to double-check that number because it is so high).
Wall Street has consistently revised downward their estimates of Gamestop’s profitability, making its stock price stability in 2022 even more perplexing. Analysts currently estimate an EBITDA loss of around $400m, markedly worse than their estimates as of 2/3/22 of a loss of $60m. Their recently launched NFT marketplace will do nothing to fix their core business and comes about a year too late to be relevant in the NFT space. Instead, we see this as another example of a meme stock company hoping it can ape its way into a new…
Read More: 10 Stocks To Buy Now