Top Fund Managers Offload Big Tech Stocks Amid Market Uncertainty
As the global stock market enters 2025, some of the best fund managers have been scaling back their positions in high-profile stocks, signaling a wave of profit-taking following two consecutive years of robust market gains. According to Morningstar’s latest report, top investors are trimming their holdings in tech giants and consumer cyclical stocks despite mixed valuation signals.
Why Are Top Fund Managers Selling?
After the stock market posted over 20% gains in 2023 and 2024, many stocks are now considered fairly valued or overvalued. Morningstar’s US Market Fair Value estimate suggests the market is no longer cheap, prompting fund managers to lock in profits on select stocks.
10 Stocks the Best Fund Managers Are Selling
These top 10 stocks have seen significant sell-offs from the best fund managers over the past few months:
1. Amazon.com (AMZN)
2. Nvidia (NVDA)
3. Microsoft (MSFT)
4. Salesforce (CRM)
5. Visa (V)
6. Alphabet (GOOGL)
7. Netflix (NFLX)
8. Tesla (TSLA)
9. Uber Technologies (UBER)
10. MercadoLibre (MELI)
Stock Highlights and Reasons for the Sell-Off
Amazon (AMZN)
✅ Wide Moat Rating
✅ 11% Undervalued
Amazon remains a strong long-term pick, but fund managers are taking profits following its impressive rally. However, Morningstar still sees Amazon as a buy, given its growth in AWS cloud services and advertising revenue.
Nvidia (NVDA)
Fairly Valued
Very High Uncertainty Rating
Despite dominating the AI chip market, Nvidia’s stock price has skyrocketed, prompting managers to cash out on profits. The stock trades around its $130 fair value estimate, with analysts warning that future AI growth is highly unpredictable.
Microsoft (MSFT)
Most Sold Stock by Fund Managers
18% Undervalued
Microsoft remains one of the most widely held stocks by top managers, but many are trimming their positions due to rising competition in AI and cloud services. Morningstar still considers Microsoft one of its top stock picks with a long-term focus on Azure and AI infrastructure.
Tesla (TSLA)
High Uncertainty Rating
Tesla has struggled to maintain its past momentum, with fund managers cutting back as EV competition intensifies and growth slows. Morningstar sees the stock as overvalued with significant risks ahead.
Netflix (NFLX)
41% Overvalued
Netflix reported record subscriber growth in 2024, but its valuation has outpaced fundamentals. Top managers are taking profits as the streaming giant faces slowing growth in mature markets and tougher competition from rivals.
What Does This Mean for Investors?
While top fund managers are scaling back on these stocks, it’s important to note that many of these companies still hold solid long-term growth prospects. The sell-off is primarily driven by:
• Profit-taking after strong rallies
• Market rebalancing in the face of high valuations
• Uncertainty surrounding AI and technology growth
Should You Sell These Stocks?
Not necessarily. While the trimming of positions by top managers is notable, some of these stocks like Amazon, Microsoft, and Alphabet remain undervalued according to Morningstar’s estimates.
However, overvalued stocks like Netflix and Visa may warrant closer scrutiny for those considering locking in profits.
Final Thoughts
The actions of top fund managers offer valuable insights into market sentiment and profit-taking strategies. Investors should balance this information with their own investment goals, market outlook, and long-term portfolio strategies before making any moves.
✅ Hold: Microsoft, Amazon, Alphabet
❌ Sell or Trim: Netflix, Visa, Tesla
Watchlist: Nvidia, Uber
As the global stock market enters 2025, some of the best fund managers have been scaling back their positions in high-profile stocks, signaling a wave of profit-taking following two consecutive years of robust market gains. According to Morningstar’s latest report, top investors are trimming their holdings in tech giants and consumer cyclical stocks despite mixed valuation signals.
Why Are Top Fund Managers Selling?
After the stock market posted over 20% gains in 2023 and 2024, many stocks are now considered fairly valued or overvalued. Morningstar’s US Market Fair Value estimate suggests the market is no longer cheap, prompting fund managers to lock in profits on select stocks.
10 Stocks the Best Fund Managers Are Selling
These top 10 stocks have seen significant sell-offs from the best fund managers over the past few months:
1. Amazon.com (AMZN)
2. Nvidia (NVDA)
3. Microsoft (MSFT)
4. Salesforce (CRM)
5. Visa (V)
6. Alphabet (GOOGL)
7. Netflix (NFLX)
8. Tesla (TSLA)
9. Uber Technologies (UBER)
10. MercadoLibre (MELI)
Stock Highlights and Reasons for the Sell-Off
Amazon (AMZN)
✅ Wide Moat Rating
✅ 11% Undervalued
Amazon remains a strong long-term pick, but fund managers are taking profits following its impressive rally. However, Morningstar still sees Amazon as a buy, given its growth in AWS cloud services and advertising revenue.
Nvidia (NVDA)
Fairly Valued
Very High Uncertainty Rating
Despite dominating the AI chip market, Nvidia’s stock price has skyrocketed, prompting managers to cash out on profits. The stock trades around its $130 fair value estimate, with analysts warning that future AI growth is highly unpredictable.
Microsoft (MSFT)
Most Sold Stock by Fund Managers
18% Undervalued
Microsoft remains one of the most widely held stocks by top managers, but many are trimming their positions due to rising competition in AI and cloud services. Morningstar still considers Microsoft one of its top stock picks with a long-term focus on Azure and AI infrastructure.
Tesla (TSLA)
High Uncertainty Rating
Tesla has struggled to maintain its past momentum, with fund managers cutting back as EV competition intensifies and growth slows. Morningstar sees the stock as overvalued with significant risks ahead.
Netflix (NFLX)
41% Overvalued
Netflix reported record subscriber growth in 2024, but its valuation has outpaced fundamentals. Top managers are taking profits as the streaming giant faces slowing growth in mature markets and tougher competition from rivals.
What Does This Mean for Investors?
While top fund managers are scaling back on these stocks, it’s important to note that many of these companies still hold solid long-term growth prospects. The sell-off is primarily driven by:
• Profit-taking after strong rallies
• Market rebalancing in the face of high valuations
• Uncertainty surrounding AI and technology growth
Should You Sell These Stocks?
Not necessarily. While the trimming of positions by top managers is notable, some of these stocks like Amazon, Microsoft, and Alphabet remain undervalued according to Morningstar’s estimates.
However, overvalued stocks like Netflix and Visa may warrant closer scrutiny for those considering locking in profits.
Final Thoughts
The actions of top fund managers offer valuable insights into market sentiment and profit-taking strategies. Investors should balance this information with their own investment goals, market outlook, and long-term portfolio strategies before making any moves.
✅ Hold: Microsoft, Amazon, Alphabet
❌ Sell or Trim: Netflix, Visa, Tesla
Watchlist: Nvidia, Uber