Billionaire Stephen Mandel’s Top 5 Stock Picks

In this article, we will take a look at billionaire Stephen Mandel’s top 5 stock picks. You can see our detailed analysis of Mandel’s history, investment philosophy, and hedge fund performance at Billionaire Stephen Mandel’s Top 10 Stock Picks.

5. Snap Inc. (NYSE:SNAP)

Lone Pine Capital’ Stake Value: $1.56 billion
Percentage of Lone Pine Capital’s 13F Portfolio: 4.93%
Number of Hedge Fund Holders: 64

Snap Inc. (NYSE:SNAP) comes in at fifth on the list of billionaire Stephen Mandel’s top 10 stock picks. The firm operates as social media and camera-based communication company. Some of the company’s most notable products include Snapchat and Bitmoji.

During the second financial quarter, 64 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in Snap Inc. (NYSE:SNAP) worth $5.4 billion. Stephen Mandel’s Lone Pine Capital holds over 22.94 million shares of the company, worth more than $1.56 billion, representing 4.93% of the fund’s total portfolio value.

On October 18, KeyBanc analyst Justin Patterson raised his price target on Snap Inc. (NYSE:SNAP) to $90 from $88, and maintained an Overweight rating on the shares of the company.

Here is what RiverPark Funds has to say about Snap Inc. in its Q2 2021 investor letter:

“Snap shares were a top contributor for the quarter as well, also driven by strong first quarter results. The company reported accelerating revenue growth of 66% for the period (up from 62% fourth quarter growth), driven by user growth of 22%, and a 36% expansion in average revenue per user (ARPU). The company also guided to stronger-than-expected and accelerating 81%-85% revenue growth for second quarter 2021. Adjusted EBITDA improved by $79 million year over year for a break-even margin, up 1,800 basis points, and free cash flow improved dramatically, turning positive for the period to $126 million. Snap also continued to roll-out products that should help drive further expansion in user growth and ARPU, including Spotlight, a TikTok-like experience, with more than 125 million Snapchatters using it during March, and original programming starring Ryan Reynolds.

With TTM of $2.8 billion in revenue and an ARPU that is about 1/2 that of Twitter and 1/3 that of Facebook, we believe Snap has a long runway for both revenue growth and expanded profitability as it improves its platform functionality, grows its audience, and continues to advance its monetization.”