5 New Stock Picks of Billionaire Mario Gabelli

3. Zendesk, Inc. (NYSE:ZEN)

Number of Hedge Fund Holders: 63  

Zendesk, Inc. (NYSE:ZEN) develops and provides SaaS solutions for organizations. Regulatory filings show that GAMCO Investors owned 8,988 shares of Zendesk, Inc. (NYSE:ZEN) at the end of June 2022 worth $666,000, representing a small portion of the portfolio. 

On July 28, William Blair analyst Arjun Bhatia downgraded Zendesk, Inc. (NYSE:ZEN) stock to Market Perform from Outperform without a price target, noting that the slowdown in the business of the firm was greater than expected.

Among the hedge funds being tracked by Insider Monkey, California-based investment firm Light Street Capital is a leading shareholder in Zendesk, Inc. (NYSE:ZEN), with 7.3 million shares worth more than $540 million.

In its Q4 2021 investor letter, Carillon Towers Advisers, an asset management firm, highlighted a few stocks and Zendesk, Inc. (NYSE:ZEN) was one of them. Here is what the fund said:

“Zendesk, Inc. (NYSE:ZEN) provides customer support software solutions. After successfully navigating the early stages of the pandemic in 2020, the firm has seen its stock cool off on the threat of increased competition from low-cost alternatives. We do not believe that the competitive dynamics have been altered. In fact, the company’s annual revenue growth rate has accelerated in 2021 from the second half of 2020. The shares also currently trade at a deep discount to other cloud-based software vendors.”