In this article, we discuss the 5 stocks to consider in the portfolio of Gary Vaynerchuk. If you want to read our detailed analysis of these stocks, go directly to Gary Vaynerchuk Stock Portfolio: 10 Stocks to Consider.
5. SentinelOne, Inc. (NYSE:S)
Number of Hedge Fund Holders: 67
Cybersecurity companies feature high on the investment agenda of Vaynerchuck. SentinelOne, Inc. (NYSE:S), a California-based cybersecurity firm, is one of the stocks to consider in his portfolio. The company went public in June this year and finished the first day of trading up 21% from the IPO price, fetching a valuation of $10 billion in the biggest cybersecurity IPO in history. The company presently has a market capitalization of more than $16 billion.
On September 9, Needham analyst Alex Henderson had kept a Buy rating on SentinelOne, Inc. (NYSE:S) stock and raised the price target to $82 from $58, noting the accelerated growth rate of the firm that was driving earnings beats.
At the end of the second quarter of 2021, 67 hedge funds in the database of Insider Monkey held stakes worth $2 billion in SentinelOne, Inc. (NYSE:S).
4. Spotify Technology S.A. (NYSE:SPOT)
Number of Hedge Fund Holders: 48
Vaynerchuk hosts a podcast called The GaryVee Audio Experience that is featured on the Spotify Technology S.A. (NYSE:SPOT) platform. He has also invested in internet firms with very similar profiles to Spotify. In a bog post last year, he outlined why he believed that attention was always monetized, with big businesses willing to pay top dollar for it. In August, the company had announced that it would let podcasters on the platform charge listeners up to $150 per month in a shift towards a content-specific subscription-based model.
On September 7, KeyBanc analyst Justin Patterson had upgraded Spotify Technology S.A. (NYSE:SPOT) stock to Overweight from Sector Weight with a price target of $340, noting that the industry dynamics for the firm appeared extremely favorable.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in Spotify Technology S.A. (NYSE:SPOT) with 3.1 shares worth more than $870 million.
In its Q4 2020 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks and Spotify Technology S.A. (NYSE:SPOT) was one of them. Here is what the fund said:
“At the current share price, Spotify basically only represents a fraction of the value they will be able to unlock in the growing market of audio entertainment. The key for Spotify is to change a variable cost base into a fixed cost base just like Netflix has. As the market share of the big labels, measured by the daily hours of engagement of the big labels, is declining, Spotify will be able to adjust its business model and create enormous operational leverage meaning that profitability will grow faster than expenses.
The music catalogue is not the business model. The value lies in the machine learning that drives discovery and engagement, the original content from people like Michelle Obama, Kim Kardashian, and Joe Rogan, the data analytics and distribution for artists, the direct and social relations artists can have with fans through music and videos. We believe that Spotify will be worth at least five times more in 2030.”
3. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 135
Uber Technologies, Inc. (NYSE:UBER) was one of the big technology firms that Vaynerchuk actually passed on investing during the initial seed rounds. Over the years, as the firm has grown, the angel investor has repeatedly shared his regret over the decision, noting that it teaches him the value of investing in people and their ideas, or being “true to oneself” as he puts it in a chat with Business Insider.
In earnings results for the second quarter, posted in August, Uber Technologies, Inc. (NYSE:UBER) reported earnings per share of $0.58, beating estimates by $1.11. The revenue over the period was $3.9 billion, up 75% year-on-year.
Among the hedge funds being tracked by Insider Monkey, California-based investment firm Altimeter Capital Management is a leading shareholder in Uber Technologies, Inc. (NYSE:UBER) with 24 million shares worth more than $1.2 billion.
RiverPark Advisors, LLC, in its Q4 2020 investor letter, mentioned Uber Technologies, Inc. (NYSE:UBER). Here is what the fund has to say in its letter:
“UBER was also a strong contributor, as shares rallied following the approval of California’s Proposition 22 by voters, allowing the company’s California-based drivers to remain independent contractors (rather than become more expensive employees). We believe this news is not just about the 10%-15% of Uber’s revenue tied to California, but the influence this will have on other states reassessing driver pay. UBER also reported strong third quarter results with Delivery Gross Bookings growing 135% year-over-year which nearly fully offset a reduction in Mobility Gross Bookings, which were down 50% year over year. Total Gross Bookings for the quarter were down only 10% year over year as compared with down 35% last quarter.
Despite the COVID disruption, UBER remains the undisputed global leader in ride sharing (44% of the Company’s third quarter revenue), with greater than 50% share in every major region in which it operates. The company is also a leader in food delivery (46% of revenue), where it is number one or two in the more than 25 countries in which it operates. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its more than 100 million users (by comparison, Amazon Prime has 130+ million members) and penetrate new markets of on-demand services, such as grocery delivery, truck brokerage and worker staffing for shift work. At its current $96 billion market capitalization, UBER trades at only 6x next year’s revenue from its two core businesses. Additionally, the company has substantial, seemingly unrecognized, value in its several nascent development businesses and another $12 billion in equity stakes in synergistic businesses around the world.”
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 138
Vaynerchuk appeared on the first TV show produced by Apple Inc. (NASDAQ:AAPL) called Planet of the Apps. As a big believer in technology stocks, he has been bullish on the company. However, he blames the failure of the TV show on marketing efforts of the electronics giant.
JPMorgan analyst Samik Chatterjee recently maintained an Overweight rating on Apple Inc. (NASDAQ:AAPL) stock with a price target of $180, backing the company to deliver a “solid” earnings beat in the fourth quarter.
At the end of the second quarter of 2021, 138 hedge funds in the database of Insider Monkey held stakes worth $145 billion in Apple Inc. (NASDAQ:AAPL), up from 127 in the preceding quarter worth $131 billion.
In its Q1 2021 investor letter, Distillate Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:
“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”
1. The Boston Beer Company, Inc. (NYSE:SAM)
Number of Hedge Fund Holders: 42
In an interview with Yahoo Finance late last year, Vaynerchuk advised investing in booze for solid returns. The business influencer has been a long-term admirer of investing in wine stocks and ran a show called Wine Library TV on the internet from 2006 till 2011. The Boston Beer Company, Inc. (NYSE:SAM) is presently one of the most high-profile alcohol stocks on the market and recently beat market expectations on revenue in the third quarter results.
In May, Bernstein analyst Trevor Stirling had initiated coverage of The Boston Beer Company, Inc. (NYSE:SAM) stock with an Outperform rating and a price target of $1,340, noting the share price offered an attractive entry point for investors with plenty of upside potential.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in The Boston Beer Company, Inc. (NYSE:SAM) with 234,700 shares worth more than $239 million.
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