Billionaire Chase Coleman Dumped 44% of Tiger Global's Stake in CrowdStrike and Loaded Up on a Historically Cheap Member of the "Magnificent Seven"

Key Points

• Quarterly-filed Form 13Fs highlight which stocks Wall Street's smartest asset managers are buying and selling.

• Billionaire Chase Coleman sent shares of the premier cybersecurity stock to the chopping block in the June-ended quarter, and profit-taking might explain only part of the story.

• Meanwhile, Tiger Global's lead investor has bought shares of one of Wall Street's most-influential businesses in six of the last eight quarters.

• 10 stocks we like better than Amazon ›

You might not realize it, but one of the most important data releases of the entire quarter occurred four weeks ago -- and it has nothing to do with earnings season or the monthly inflation report.

Aug. 14 marked the deadline for institutional investors with at least $100 million in assets under management (AUM) to file Form 13F with U.S. regulators. A 13F provides a way for investors to look over the shoulders of Wall Street's savviest fund managers to see which stocks, exchange-traded funds (ETFs), and select options they purchased and sold in the latest quarter.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Although 13Fs are far from perfect -- they can present stale information for very active hedge funds -- they're invaluable in the sense that they can clue investors into the trends and businesses that have the undivided attention of the most-successful money managers.

Image source: Getty Images.

For instance, billionaire Chase Coleman of Tiger Global Management, who closed out June with north of $34 billion in AUM, is known for making waves on Wall Street and isn't shy about putting his capital to work in high-growth, innovation-driven stocks.

Based on Tiger Global's latest 13F, its billionaire boss was a decisive seller of CrowdStrike Holdings (NASDAQ: CRWD), but continued to be a buyer of a historically cheap member of the "Magnificent Seven."

Tiger Global's billionaire chief slashed his fund's stake in CrowdStrike

As recently as the June-ended quarter of 2022, cybersecurity titan CrowdStrike Holdings was Coleman's third-largest holding by market value. Tiger Global Management held north of 6.55 million shares, and it was easy to understand why its billionaire investor was so excited about its prospects.

CrowdStrike's Falcon security platform is an artificial intelligence (AI)- and machine learning (ML)-driven software-as-a-service (SaaS) powerhouse. Leaning into AI and ML means Falcon grows smarter and more efficient at responding to and recognizing potential end-user threats over time. Though CrowdStrike endured a widespread outage caused by a software update to its Windows-based Falcon security product in July 2024, there has yet to be a significant breach of its SaaS platform by hackers.

Even though CrowdStrike's products are typically priced at a premium, the effectiveness of Falcon has kept clients loyal to the brand. Additionally, as its customers have grown, so have their needs for cybersecurity products. Just shy of half of its customers have adopted six or more cloud modules, as of the end of July.

Despite CrowdStrike's competitive edge, Coleman reduced Tiger Global's stake down to just 900,000 shares in the third quarter of 2022, which is where the share count remained for almost three years. During the second quarter of 2025, Coleman sent 400,000 (44%) of the remaining shares to the chopping block.

CrowdStrike stock spent much of the second quarter at north of $400 per share and even briefly crested $500. With the bulk of Tiger Global Management's position entered between $70 and $100 per share during the second quarter of 2020, locking in triple-digit percentage gains makes sense.

However, valuation may have also played a role in Chase Coleman's decision to slash his fund's position in CrowdStrike. While companies with a sustainable moat or superior product are worthy of premium valuations on Wall Street, it's debatable how far this premium can be reasonably stretched.

As of the closing bell on Sept. 5, share of the company were valued at close to 24 times trailing-12-month sales and 87 times forward-year earnings. Even if it were to sustain a 20%-plus sales growth rate, there's no margin for error.

To add to this point, the stock market recently surged to its third-priciest valuation when back-tested more than 150 years, based on the S&P 500's Shiller price-to-earnings Ratio. With historical precedent strongly suggesting significant downside awaits, companies with premium valuations, like CrowdStrike, are often hit the hardest during stock market corrections.

Image source: Amazon.

Billionaire Chase Coleman has been buying this Mag-7 stock for two years

On the other hand, five of Tiger Global's six largest holdings are members are of the Magnificent Seven. But the one Chase Coleman can't stop buying over the last two years, based on 13F filings, is e-commerce colossus Amazon (NASDAQ: AMZN).

As of the midpoint of 2023, Amazon was Tiger Global Management's seventh-largest holding, with 3,695,280 shares held. Over the subsequent eight quarters, Coleman would press the buy button in six of them. This includes buying 4,097,053 shares of Amazon stock during the June-ended quarter of 2025, which increased his fund's stake by 62%. It also made Amazon a top-four holding for Tiger Global.

Most investors familiarize themselves with Amazon through the company's world-leading online marketplace. But even though this segment draws in billions of monthly visitors and is responsible for a significant chunk of Amazon's net sales, it plays a distant second fiddle, in terms of operating cash flow generation, to its trio of high-margin ancillary segments.

Chase Coleman's fascination with Amazon likely has to do with cloud infrastructure service platform Amazon Web Services (AWS), which according to estimates from Canalys accounted for 32% of global market share during the first quarter. Amazon is spending aggressively to incorporate AI solutions into AWS for clients, which has the potential to accelerate growth for a segment that's sustained high-teens year-over-year growth.

More important, the margins associated with AWS are light years ahead of what Amazon nets from online retail sales. Despite accounting for less than 19% of net sales through the first-half of 2025, AWS is responsible for almost 58% of the company's operating income. AWS's $123 billion annual revenue run-rate is only going to grow from here.

The other high-margin ancillary divisions include advertising services and subscription services. The former benefits from billions of people visiting Amazon's online marketplace and streaming content on a monthly basis, while the latter has enjoyed growth via Prime subscriptions.

To round things out, Tiger Global's billionaire money manager is likely also enticed by Amazon's historically cheap valuation. Though Amazon isn't inexpensive based on the traditional price-to-earnings ratio, it does appear to be a bargain relative to its future cash flow. During the 2010s, Amazon consistently traded at a year-end multiple to cash flow of 23 to 37. Coleman was able to add to his fund's position in Amazon during the second quarter for approximately 10 to 12 times consensus cash flow for 2026.

Should you invest $1,000 in Amazon right now?

Before you buy stock in Amazon, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $671,288!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,031,659!*

Now, it’s worth noting Stock Advisor’s total average return is 1,056% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 8, 2025

Sean Williams has positions in Amazon. The Motley Fool has positions in and recommends Amazon and CrowdStrike. The Motley Fool has a disclosure policy.