Billionaire Chase Coleman Dumped 44% of Tiger Global's Stake in CrowdStrike and Loaded Up on a Historically Cheap Member of the "Magnificent Seven"

Billionaire Chase Coleman's Tiger Global Management significantly reduced its CrowdStrike Holdings stake in Q2 2025, attributing the move to profit-taking and valuation concerns amidst CRWD's high multiples and broader market valuation. Concurrently, Tiger Global significantly built its Amazon position over the past two years, including a 62% increase in Q2 2025, making it a top-four holding. This strategic pivot reflects a preference for Amazon's high-margin AWS segment and historically attractive future cash flow valuation.

Analysis

Tiger Global Management's Q2 2025 13F filing signals a notable strategic pivot, rotating out of a high-multiple cybersecurity leader and further concentrating in a mega-cap tech giant. The fund reduced its CrowdStrike (CRWD) position by 44%, a move likely driven by both profit-taking and valuation discipline. Having entered the bulk of its position between $70 and $100 per share, the sale near the $400-$500 level locked in substantial triple-digit gains. More critically, the decision appears to be a response to CRWD's demanding valuation, which stood at approximately 24 times trailing-12-month sales and 87 times forward earnings, offering little room for error, especially in a broader market environment where the S&P 500's Shiller P/E ratio indicates historically high valuations. Conversely, Tiger Global increased its Amazon (AMZN) stake by 62%, making it a top-four holding and continuing a pattern of accumulation over six of the last eight quarters. This bullish stance is predicated on Amazon's high-margin segments, particularly Amazon Web Services (AWS), which accounts for 32% of the global cloud market and contributes nearly 58% of the company's operating income. The key attraction is Amazon's valuation relative to its cash flow; the Q2 purchases were made at an estimated 10 to 12 times consensus 2026 cash flow, a significant discount to its historical range of 23 to 37, suggesting a favorable risk/reward profile.

Key Decisions for Investors

• Investors in CrowdStrike should consider the risk associated with its high valuation multiples, as Tiger Global's significant sale suggests that prominent managers see the stock as vulnerable to a market downturn despite its strong operational performance.
• For Amazon, investors should look beyond the traditional P/E ratio and focus on the price-to-cash-flow metric, which, at a significant discount to historical levels, appears to be the primary driver for Tiger Global's sustained accumulation.
• Consider re-evaluating exposure to high-growth stocks with stretched valuations and look for opportunities in quality large-caps with dominant market positions and more attractive cash flow-based valuations, mirroring the institutional rotation from CRWD to AMZN.