5 Stocks that Best Performing Hedge Funds are Piling Into

4. Twitter, Inc. (NYSE: TWTR)

Number of Hedge Fund Holders: 107   

Number of Hedge Funds Having Stakes in the Company Out of Top 100 Hedge Funds: 11

Twitter, Inc. (NYSE: TWTR) is a California-based social networking platform founded in 2006. It is placed fourth on our list of 13 stocks that best performing hedge funds are piling into. The stock has returned more than 69% to investors over the course of the past twelve months. According to Insider Monkey calculations, eleven hedge funds out of the 100 best performing ones are bullish on Twitter. 

On April 29, Twitter, Inc. (NYSE: TWTR) posted quarterly earnings results, reporting earnings per share of $0.16 for the first three months of 2021, beating market expectations by $0.02. The revenue over the period was more than $1 billion, up 28% year-on-year. 

At the end of the first quarter of 2021, 107 hedge funds in the database of Insider Monkey held stakes worth $4.5 billion in Twitter, Inc. (NYSE: TWTR), up from 78 in the preceding quarter worth $2.7 billion. 

RGA Investment Advisors, in its Q1 2021 investor letter, mentioned Twitter, Inc. (NYSE: TWTR). Here is what the fund has to say in its letter:

“‘The bird has wings’—Twitter’s quarter started off somewhat ominously, with Twitter the worst performing stock in the S&P 500 following the January 6th insurrection and questions about the stickiness of the userbase after permanently suspending the account of President Trump.8 By the end of the quarter, Twitter was one of the best performers in the index after exceptionally strong fourth quarter earnings and guidance for the year and an upbeat analyst day that highlighted a rapidly evolving product roadmap placing the timeline at the center of ephemeral (fleets), long form (Revue) and voice (Spaces). The improvements to the experience makes the platform more accessible and provides more opportunity to continue growing the userbase. Importantly, Twitter also embraced what we have been calling “creative empowerment” in previewing SuperFollows and a host of features designed to help content creators and contributors monetize their own audience on Twitter itself. These developments, alongside considerable progress on the advertising platform give us growing conviction that Twitter will deliver on its largely untapped opportunity—in other words, the value creation opportunity on top of the low multiple we were able to build our position at. Elliot spoke at length about these developments on Yet Another Value Podcast with Andrew Walker and The Business Brew with Bill Brewster, which we invite you to check out.”