5 Best New Stocks To Buy According to Hedge Funds

4.   Vimeo, Inc. (NASDAQ:VMEO)

Number of Hedge Fund Holders: 48

Price as of October 20, 2021: $33.54

Vimeo, Inc. (NASDAQ:VMEO) is an SaaS video creation, hosting, and sharing platform that is focused on providing HD videos based out of New York. The organization became public in May 2021 after its spin-off from IAC.

A cumulative position of $1.13 billion is held by 48 hedge funds in Vimeo Inc. (NASDAQ:VMEO) as of the second quarter of 2021. All of these positions have been taken during the second quarter of 2021. Joshua Kushner led Thrive Capital has the largest stake worth nearly $287 million in Vimeo, Inc. (NASDAQ:VMEO).

Alphyn Capital Management shared its perspective on Vimeo Inc. (NASDAQ:VMEO) in its Q2 2021 investor letter:

“Clients will notice a new ticker, VMEO, on your brokerage statements following its spin-out from IAC. I profiled IAC’s companies, including Vimeo, in some detail last year. The pandemic accelerated the use of video by both enterprises and small businesses, and I believe this will continue given the high engagement that video generates. The most recent numbers bear this out: May revenues rose 42% from a year earlier while subscriber base and average revenue per user increased 18%. With its comprehensive set of tools to make video creation more accessible, Vimeo has a great opportunity to capture a share of this growth. It further benefits from an attractive customer acquisition funnel – 65% of Fortune 500 enterprises have at least one self-serve Vimeo subscription (with ARPU6 of $250). The company is building out its sales team to help upsell these into enterprise accounts (with ARPU of $12,000). Finally, by buying IAC shares ahead of the spin, we received a long-term, high-growth SAAS “call option” at a much more palatable valuation than the current 20x price-to-sales. Historically, it has been very rewarding to hold onto IAC spins…”