The Bill Gates Foundation has sold shares in Alibaba, Uber and Apple. Here's what was bought.
The Bill & Melinda Gates Foundation sold positions in the Alibaba Group (ticker: BABA) and Uber Technologies (Uber), halved its stake in Apple (AAPL) and increased its investment in Schrodinger (SDGR) in the fourth quarter. The trust disclosed exchange trading, among other things, in a form that it filed with the Securities and Exchange Commission.
The Gates Trust sold 552,383 of Alibaba's American Depositary Receipts that it held at the end of the third quarter to the end of 2020.
Alibaba's ADRs skyrocketed in January after company founder Jack Ma reappeared in a video after not appearing in public for months. Both Ma and Alibaba fell out with Chinese regulators after he criticized the state banking system. Regulatory complexity eased in February with the removal of Alibaba's ADR.
The Trust did not own many shares of the giant Uber - only 26,767 shares - but it sold them all in the fourth quarter.
Uber shares are up 71.5% in 2020. Since the beginning of the year, it has grown by 14.5%.
Uber's food delivery division, Uber Eats, could be the crown jewel of the company. Earlier this month, the company said fourth-quarter revenues, including Uber Eats, were $ 1.36 billion, up 224% from a year ago. Interestingly, earlier this month, Uber agreed to buy alcohol delivery startup Drizzly for $ 1.1 billion.
Apple shares are up 80.8% in 2020, but so far they have dropped 2.1% in 2021.
There is widespread speculation that Apple is working on a car. Reportedly, negotiations with Hyundai as a partner have not yet resulted in an agreement. Apple denied estimates when it released its fiscal first quarter data in late January.
The Gates Trust sold 1 million shares of Apple in the fourth quarter, reducing its stake in the iPhone maker to 1 million shares.
The fund bought another 2 million Schrodinger shares by the end of 2020 with 7 million shares. The company offers a software platform used in the drug discovery process.
Schrodinger's initial public offering in February 2020 was valued at $ 17 per share. At the end of the year, the company's shares were up 466%. So far, stocks are up 32.6% in 2021.
Do Kim, an analyst at BMO Capital Markets Research, raised the target price for Schrodinger's stock to $ 117 from $ 97. The new target price implies about 11% upside potential. Kim sees an increase in drug discovery revenues through an agreement with Bristol-Myers Squibb (BMY). He rates Schrödinger as “the best”.