David Gardner Stock Pick (+Analysis)

David Gardner Stock Pick

The key to “winning” as an investor is to uncover high-performing stocks before the rest of the market does.

Did you know that Motley Fool co-founder, David Gardner, recommends sets of stocks on the Rule Breaker Investing podcast?

For every five-stock set, at every annual review, Gardner has beaten the S&P 500s performance over the same period.

And today, we are here to put that claim to the test.

We have selected one of David Gardner’s five-stock sets from about a year ago to analyze.

We will take a look at:

  • Why David Gardner chose the stock
  • How the stock has performed
  • Where the stock is today

So, how did these stocks perform?

You are about to find out!

5 Stocks That David Said Could Double Your Money in 2018

1- Activision Blizzard (ATVI)

David Gardner Analysis

Gardner acknowledges that Activision is not as prominent as other large Chinese companies, like NetEase, for example. Gardner praises the future of interactive entertainment, particularly the digital card game Hearthstone and Overwatch. These games have proved to be hits and moneymakers for the company.

Cities in the United States and abroad are paying millions to have rights to have a team competing in Overwatch. Thus, e-sports is a major component of Activision Blizzard. These games also include Starcraft and World of Warcraft. Bottom line – this company has plenty to offer gaming enthusiasts.

Oh, and Gardner loves Activision CEO Bobby Kotick. Gardner’s ringing endorsement of the CEO included calling him a “brilliant asset allocator.”

Stock Price (as of 4/23/2018): 66.23

 

Where is Activision today?

It appears that David Gardner was off on his initial predication.

The first major speed bump came when shares of Activision Blizzard sunk 28% in November 2018 following a weak outlook for the holiday quarter. The company reported revenue of $1.51 billion, down from $1.62 billion year over year.

The stock was loved in 2017, but not-so-much in 2018. However, you may not need to continue looking in the rear-view mirror for this stock. Shares have been trading sideways for the past six months. This trend could be a result of the lingering negative sentiment surrounding the stock.

But there is one thing you can’t deny – people around the world love video games. Activision is one of the largest companies in this space and is in virtually every corner of the world.

So, let’s just say that David Gardner is wrong…for now.

Stock Price (as of 4/19/2019): 45.31

The verdict: WRONG… 

Activision Stock Chart

2- Google (GOOG)

David Gardner Analysis

Alphabet is the parent company of Google.

When you think of Google you likely think ‘Search engine’ to start out. After all, Google is the company that answers all of the important questions in the world like ‘Who would win in a fight between superman and batman.’

However, Gardner suggests that, in 20 years, we will remember Google for Artificial Intelligence (AI). That’s right – we will remember Google as the AI, the artificial intelligence company as artificial intelligence.

Gardner goes on to suggest that AI will be as vital to day-to-day life as Wi-Fi. If he is right, Google certainly would not be a bad bet, right?

Stock Price (as of 4/23/2018): 1,073.81

 

Where is Google Stock today?

Google stock dropped as low as $984.67 around Christmas 2018.

But hopefully you held the stock rather than sold it whilst cursing out Gardner and cutting your losses. Google still maintains its giant presence as a search engine and has powerful tailwinds in digital advertising, cloud, and computing platforms.

Not only does the company dominate the search game, it also has investments in a variety of other businesses. These investments may not be fully built into the stock price which is why the stock continues to rise and may not be done. Oh, and don’t forget these guys own YouTube, as well.

Gardner got this one correct – but is it possible to go wrong with Google?

Stock Price (as of 4/19/2019): 1,241.47

The verdict: CORRECT!  

  Get David Gardner’s Current Stock Picks

3- Intuitive Surgical

David Gardner Analysis

Intuitive Surgical was a winner in 2017 and perhaps there is more to come in 2018.

David Gardner has held Intuitive Surgical for 15 years. During that time, the company has split a few times (including a three to one stock split in 2017) but that has not deterred Gardner from the stock.

The company spends around $250 million a year on R&D investing in the future. Other upstart companies would kill for having that as their revenues or profits. So, think about that – Intuitive Surgical is spending that much on R&D.

Was David Gardner right on this one?

Stock Price (as of 4/23/2018): 447.84

Where they are today?

Intuitive Surgical is up more than 1,600% over the last ten years.

The market for robotic surgical systems should continue to grow in the future. Think about it – baby boomers are going to require more healthcare services, including surgery. Additionally, many of these surgeries are going to be candidates for Intuitive’ s da Vinci system.

Furthermore, millennials are getting older, too! In 10 years, many of this group will be in their 40s which is the prime age for hysterectomies. And guess what? Hysterectomies are one of the most frequently performed surgeries for da Vinci.

Perhaps there is a reason Gardner picked this winner.

Stock Price (as of 4/19/2019): 528.06

The verdict: CORRECT! 

Intuitive Stock Chart

4- Zillow

David Gardner Analysis

Zillow has about 150 million people who visit on a monthly basis.

These people are looking at listings of their house, of other houses, or places they would like to move. Or maybe people just enjoy looking at houses. However, these reasons make Zillow the go-to home-search site and the friend of realtors everywhere.

Stock Price (as of 4/23/2018): 47.69

Where is Zillow today?

Zillow stock declined around 17% in March 2019.

Zillow’s shares have rebounded slightly in April, up 7%. The Federal Reserve recently announced that it would back away from its plan to raise rates later in 2019. This is good news for Zillow and investors seem to be pricing in the potential for lower mortgage rates to increase home sales and refinancing activity.

New home sales are at an 11-month high and refinancing applications are up, as well. The housing market appears to be getting strong which bodes very well for this stock.

Gardner was wrong as of today – but consider holding on to this stock.

Stock Price (as of 4/19/2019): 35.61

The verdict: WRONG… 

 

 5- Match Group

David Gardner Analysis

Gardner has found memories of growing with Match.com. Gardner goes on to describe Match.com as the “LinkedIn of dating” for the sites professional look.

But do not forget that Match Group owns Tinder and Match.com. In addition to those offerings, Match Group has 30 to 40 other sites appealing to people of all different, um, tastes?

So, let’s face it – meeting other people online and forming life-long relationships is how people nowadays.

Stock Price (as of 4/23/2018): 46.41

 

Where they are today?

Match Group continues with its strong push and should not be overlooked by investors.

The company runs leading online dating sites like Match, Tinder, PlentyofFish, OkCupid, Pairs, Twoo, OurTime, and many more.

And Tinder is poised to continue to be a leader in the global app market. The company gets around 1.6 billion swipes per day and about 1 million dates per week. This makes Tinder (and the other sites) excellent targets for online advertisers.

Furthermore, Match Group’s products are available in 42 languages in over 190 countries.

Hopefully you swiped right last year when Gardner made the pick.

Stock Price (as of 4/19/2019): 59.10

The verdict: CORRECT! 

Match Stock Chart

David Gardner Stock Pick Summary

As you can see, no one can predict the market with 100% accuracy. Even the greatest investors in the world like David Gardner make mistakes some times.

BUT I like to look at his performance with a baseball analogy… He got 3 out of 5 right; that’s a .600 batting average! I want him on my TEAM!

Here are the final results (on a per company basis) on the David Gardner stock picks that we sampled:

Activision Blizzard: Wrong

Google: Correct!

Intuitive Surgical: Correct!

Zillow: Wrong

Match Group: Correct!

Get David Gardner’s Current Stock Picks

* This is a no-risk offer with a 30-day money back guaranty. For a limited time only, Get Stock Advisor for $99/year.