When looking for stock ideas, it can be instructive to study what fund managers or investment firms are buying.
In particular, Temasek Holdings stands out as an exemplary example.
The investment firm has generated an 8% compounded total shareholder return over 20 years, alluding to the success of its long-term investment strategy.
And if you’re a growth investor, you’re in luck.
The firm’s recent 13F quarterly filing shows an increase in the positions for several US growth stocks for the second quarter of 2022 (2Q2022).
Let’s take a look at five of Temasek’s latest stock buys to determine if they could fit snugly into your buy watchlist.
Roblox (NYSE: RBLX)
Roblox is an online platform for game creation that allows its users to program and play games created by other users.
Temasek added close to 485,000 shares of the company, taking its stake to 13.5 million shares valued at around US$526.9 million.
Roblox continued to enjoy a rise in daily active users (DAU), up 21% year on year to 52.2 million for 2Q2022.
The hour engaged on its platform also improved by 16% year on year to 11.3 billion for the quarter.
However, bookings dipped slightly by 4% year on year to US$639.9 million.
Financials-wise, the game creation platform saw revenue jump 30.2% year on year to US$591.2 million.
Operating loss, however, increased from US$143 million in 2Q2021 to US$170.3 million while net loss climbed 26% year on year to US$176.4 million due to interest expenses on its debt.
Free cash flow also turned negative, the first time it has done so in the past 11 quarters.
Sea Limited (NYSE: SE)
Sea Limited is a Singaporean technology company with three key divisions – digital entertainment (Garena), e-commerce (Shopee) and digital financial services (SeaMoney).
Temasek added 203,347 shares of the company in 2Q2022, taking its stake to 2.75 million shares worth US$171.4 million.
The group reported a 29% year on year jump in total revenue to US$2.9 billion, with gross profit increasing by 17.1% year on year to US$1.1 billion.
However, the net loss for the quarter more than doubled year on year from US$433.7 million to US$931.2 million.
Its e-commerce division saw gross orders climb 42% year on year while gross merchandise value improved by 27% year on year to US$19 billion.
However, Sea’s digital entertainment division saw quarterly paying users plunge by 39% year on year to 56.1 million for 2Q2022.
DoorDash (NYSE: DASH)
DoorDash is an online food ordering and food delivery platform that operates in 27 countries around the world.
Temasek topped up its stake in the company to 4.88 million shares with the addition of 14,254 shares in 2Q2022.
DoorDash reported a 30.1% year on year jump in revenue to US$1.6 billion.
However, net loss for the food delivery company more than doubled year on year from US$102 million to US$263 million.
The good news is that the company is seeing total orders rise 23% year on year to 426 million, with marketplace gross order value jumping 25% year on year to US$13.1 billion.
Amazon (NASDAQ: AMZN)
Amazon needs no introduction, being the largest e-commerce player in the world with a market capitalisation of US$1.3 trillion.
Temasek boosted its position in Amazon from 171,969 shares previously to 3.15 million shares, taking the value of its stake to US$405.5 million.
The e-commerce behemoth saw revenue increase by 7.2% year on year to US$121.2 billion.
Operating profit, however, plunged by 57% year on year to US$3.3 billion on higher technology, sales and marketing expenses.
Amazon reported a net loss of US$2 billion for the quarter, reversing the net profit of US$7.8 billion in 2Q2021.
To be sure, 2Q2022’s numbers included a valuation loss of US$3.9 billion on the company’s stake in Rivian Automotive (NASDAQ: RIVN).
Excluding this item, net profit would have fallen by 76% year on year.
Snowflake (NYSE: SNOW)
Snowflake is a data cloud company that offers a cloud-based data storage and analytics service.
Temasek’s stake in the company increased to 1.42 million shares with the addition of 60,032 shares in 2Q2022, valuing its stake in Snowflake at US$262 million.
The data cloud company saw product revenue soar 83% year on year to US$466.3 million for 2Q2022.
Snowflake’s remaining performance obligations came in at US$2.7 billion, representing a 78% year on year growth.
The business had 6,808 total customers at the end of the quarter and enjoyed a net revenue retention rate of 171%.
Snowflake believes there is a significant market opportunity for it to grow further, with Gartner research projecting that the platform’s total addressable market will be worth US$248 billion by 2026.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.