Middle Coast Investing’s Updates on Vimeo’s (VMEO) Merger

Middle Coast Investing, an investment advisor firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was favorable for Middle Coast Investing. Its collective portfolio outperformed the S&P 500 and is ahead of benchmarks year to date. In Q3 2025, the US Portfolios returned 9.6% compared to 7.8% for the S&P 500. It’s Core U.S. portfolios returned 10% while the Russell 2000 returned 12%, the S&P 600 returned 8.7% and the Nasdaq generated 11.2% for the same period. Also, its European Portfolios appreciated by 5.5%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Middle Coast Investing highlighted stocks such as Vimeo, Inc. (NASDAQ:VMEO). Vimeo, Inc. (NASDAQ:VMEO) is a video software solutions provider. The one-month return of Vimeo, Inc. (NASDAQ:VMEO) was 61.54%, and its shares gained 58.25% of their value over the last 52 weeks. On October 6, 2025, Vimeo, Inc. (NASDAQ:VMEO) stock closed at $7.77 per share, with a market capitalization of $1.291 billion.

Middle Coast Investing stated the following regarding Vimeo, Inc. (NASDAQ:VMEO) in its third quarter 2025 investor letter:

“Vimeo, Inc.’s (NASDAQ:VMEO) merger story also took a long time to play out. We bought on reports about a deal in March 2024. The deal didn’t come through, but I liked Vimeo’s ability to get back to growth and profitability. That was playing out in my view, but it was going to take time. Fortunately for us, Bending Spoons, the rumored buyer a year ago, came back and offered $7.85/share. While we did sell some of our shares too early at $4, we saw a nice boost in several portfolios from this.”

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Vimeo, Inc. (NASDAQ:VMEO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 25 hedge fund portfolios held Vimeo, Inc. (NASDAQ:VMEO) at the end of the second quarter, up from 24 in the previous quarter. While we acknowledge the risk and potential of Vimeo, Inc. (NASDAQ:VMEO) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Vimeo, Inc. (NASDAQ:VMEO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Vimeo, Inc. (NASDAQ:VMEO) and shared the list of best technology penny stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.