Billionaire David Rubenstein Says Recession Is Likely, but Stays Heavily Invested in These 2 Stocks – Yahoo Finance

December 21, 2022 by No Comments

The voices issuing warnings of an impending recession have been growing louder. The feeling on Wall Street is that one is all but inevitable right now. One prominent name to wade in on the matter is billionaire David Rubenstein.

The Carlyle Group co-founder believes that due to the current economic environment of “jacked up” interest rates, gross domestic product growth is set to decelerate, bringing in to play a recession.

Not only that, but he also thinks the Fed is unlikely to put the brakes on its hawkish monetary policy until the unemployment rate reaches around 6%, the threshold from which inflation is likely to cool down.

As a co-founder of a private equity firm with almost $400 billion in assets under management, Rubenstein knows a thing or two about the markets and stock picking. And picky he certainly seems to be; at present, two stocks account for 76% of his firm’s portfolio. With the prospect of a recession high on his probability list, the billionaire evidently thinks these stocks are ones to own right now.

Rubenstein is not the only one showing confidence in these names; according to the TipRanks database, Wall Street’s analysts rate both as ‘Buys.’ Let’s take a closer look.

ZoomInfo Technologies (ZI)

Accounting for the biggest holding in his portfolio (39%), and worth almost $1.6 billion, the first Rubenstein-backed stock we’ll look at is ZoomInfo, or as it is otherwise known as – The Other Zoom.

This B2B data and software provider gathers information about companies and professionals and uses artificial intelligence (AI) to provide salespeople a better understanding of their market and prospective clients. In the past, sales teams have depended on instincts and know-how to locate and acquire new clients. However, ZoomInfo helps them make the most of data and technology to contact the relevant customers at the right moment. And this can help companies get an edge over their competitors.

ZoomInfo’s latest financial statement, for Q3, was a strong one. Revenue climbed by 45.5% year-over-year to $287.6 million, beating the Street’s forecast by $9.12 million. Likewise for adj. EPS, which almost doubled from the year-ago quarter from $0.13 to $0.24 whilst also coming in ahead of the $0.20 consensus estimate.

But investors were expecting more out of the outlook and the company also said it anticipates dollar-based net retention to drop in 2022 on account of longer sales cycles and its sales force being strained. As such, the company’s outlook for Q4 and 2023 is a cautious one.

Such talk …….



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