We believe Salesforce.com, Inc. (NYSE:CRM), Veeva Systems Inc (NYSE:VEEV), and Workday Inc (NYSE:WDAY) are likely to be in the short basket of David Einhorn. Billionaire hedge fund manager David Einhorn is famous for shorting stocks and making a ton of money. On Monday evening at the Ira Sohn Investment Conference David Einhorn presented the short thesis for Athenahealth Inc. (NASDAQ:ATHN). The stock lost 16% on Tuesday. Athenahealth Inc. isn’t the only stock David Einhorn is shorting. Einhorn, in a Bloomberg TV interview, revealed that he is shorting dozens of technology stocks. This is a brilliant approach because he can maintain his short exposure as long as the entire basket of stocks don’t appreciate too much. Einhorn revealed one stock that he is shorting, but what are the other dozens of tech stocks he is shorting? We have an idea.
In his presentation Einhorn displayed Athenahealth Inc.’s peer group and said the following:
“There are many stocks that can’t be valued as a multiple of profits or cash flows because they have little or none. So analysts are left with relative valuations. Here is how athena seems reasonable next to its peers. But the implication is that its peers are properly valued. It’s all a matter of perspective. Depending on which stock you are thinking about, all these stocks seem reasonable compared to the others. This is what happens in a bubble.”
Here are the 8 stocks: Salesforce.com, Inc. (NYSE:CRM), Veeva Systems Inc (NYSE:VEEV), Workday Inc (NYSE:WDAY), Concur Technologies Inc. (NASDAQ:CNQR), The Ultimate Software Group, Inc. (NASDAQ:ULTI), NetSuite Inc (NYSE:N), ServiceNow Inc (NYSE:NOW), and Demandware Inc (NYSE:DWRE). Some investors got the message and some of those stocks tumbled on Tuesday. Here are the returns for these stocks yesterday:
Demandware Inc (NYSE:DWRE) – Lost 9.5%
ServiceNow Inc (NYSE:NOW) – Lost 2%
NetSuite Inc (NYSE:N) – Lost 2.7%
The Ultimate Software Group, Inc. (NASDAQ:ULTI) – Lost 1.3%
Concur Technologies Inc. (NASDAQ:CNQR) – Lost 1.6%
Workday Inc (NYSE:WDAY) – Lost 2.1%
Veeva Systems Inc (NYSE:VEEV) – Lost 1.3%
Salesforce.com, Inc. (NYSE:CRM) – Lost 0.6%
