Wall Street investors are no strangers to important data releases, but Friday, February 14, carried extra significance. Institutional investors managing at least $100 million in assets were required to file their Form 13F with the Securities and Exchange Commission (SEC), providing a revealing glimpse into the latest stock movements of the world’s most influential money managers.
Among these top-tier investors is billionaire Ole Andreas Halvorsen of Viking Global Investors, who closed out 2024 with an impressive $30.9 billion in assets under management (AUM) spread across 86 stocks. Known for running an active fund with an average holding period of less than a year for his top 20 positions, Halvorsen’s buying and selling decisions are closely watched by Wall Street and retail investors alike.
Tesla Gets the Axe: A Bold Move by Viking Global
One of the biggest surprises in Halvorsen’s latest 13F filing was the complete liquidation of Viking Global’s position in Tesla (NASDAQ: TSLA). The fund offloaded all 436,272 shares of the electric vehicle (EV) giant, a stake valued at over $114 million as of September 30. Given Tesla’s dominant presence in the EV industry and its place in the “Magnificent Seven,” this decision raised eyebrows across the investment community.
Tesla has undeniably achieved significant milestones, including becoming the first automaker in more than 50 years to scale up from the ground to mass production. Additionally, the company recently celebrated its fifth consecutive year of GAAP profitability, and CEO Elon Musk has been aggressively pushing Tesla beyond the automotive sector into energy generation, storage solutions, and its vast Supercharger network.
Yet, Viking Global’s exit signals potential concerns. Tesla has been facing increased pressure due to declining vehicle margins, intensified competition, and repeated price cuts across its fleet. With slowing demand and Musk’s growing commitments outside of Tesla—such as his role in the Department of Government Efficiency (DOGE) under Donald Trump—investors may be questioning the sustainability of Tesla’s lofty valuation. Furthermore, over half of Tesla’s 2024 pre-tax profit came from non-operational sources like regulatory credits and digital asset value adjustments, raising concerns about its core business strength.
Netflix Becomes Viking Global’s Streaming Darling
While Tesla was shown the door, Halvorsen was aggressively buying into Netflix (NASDAQ: NFLX). Viking Global more than doubled its position in the streaming giant, purchasing 297,317 additional shares—a staggering 145% increase in its holdings since September 30.
Netflix continues to dominate the streaming landscape, boasting an impressive 301.63 million global paid memberships by the end of 2024. Unlike many streaming competitors struggling to reach profitability, Netflix has consistently demonstrated its ability to generate recurring profits.
Moreover, the platform has successfully reignited subscriber growth. The 18.91 million net additions in Q4 2024 marked the highest quarterly increase in years, firmly leaving behind concerns of stagnation seen in 2022. By refining its content strategy, introducing an ad-supported tier, and cracking down on password sharing, Netflix has managed to not only attract new subscribers but also boost revenue streams.
Strategic Moves in an Uncertain Market
Halvorsen’s latest portfolio adjustments highlight the rapidly changing dynamics of the stock market. As competition stiffens in the EV space and Tesla’s core profitability comes under scrutiny, even once-loyal investors are reconsidering their positions. Meanwhile, Netflix’s resurgence in subscriber growth and its ability to maintain profitability in the streaming wars make it an increasingly attractive investment.
