In this article, we discuss the top 5 stock picks of Mitch Rubin’s RiverPark Advisors. If you want to skip our detailed analysis of these stocks, go directly to Mitch Rubin’s RiverPark Advisors Portfolio: Top 10 Stock Picks.
5. Snap Inc. (NYSE:SNAP)
RiverPark Advisors’ Stake Value: $25,691,000
Percentage of RiverPark Advisors’ 13F Portfolio: 3.27%
Number of Hedge Fund Holders: 64
Snap Inc. (NYSE:SNAP) is a California-based social media and camera company, founded in 2011. The flagship products of Snap Inc. (NYSE:SNAP) include Snapchat, Spectacles, and Bitmoji. As of Q3 2021, Snapchat has a daily worldwide user traffic of 306 million. RiverPark Advisors holds 377,028 shares in Snap Inc. (NYSE:SNAP) as of June this year, valued at $25.6 million, representing 3.27% of the firm’s investment portfolio.
As of the second quarter of 2021, 64 funds from the elite database of 873 hedge funds maintained by Insider Monkey were long Snap Inc. (NYSE:SNAP), down from 73 in the preceding quarter.
On October 21, Snap Inc. (NYSE:SNAP) posted a Q3 EPS of $0.17, beating estimates by $0.09. Revenue for the quarter totaled $1.07 billion, missing estimates by -$31.97 million. Citi analyst, Jason Bazinet, on November 1, upgraded Snap Inc. (NYSE:SNAP) from Sell to Neutral, following the Q3 results, with a price target of $53, down from $67.
Here is what RiverPark Funds has to say about Snap Inc. (NYSE:SNAP) 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.”
4. Apple Inc. (NASDAQ:AAPL)
RiverPark Advisors’ Stake Value: $26,466,000
Percentage of RiverPark Advisors’ 13F Portfolio: 3.37%
Number of Hedge Fund Holders: 138
Apple Inc. (NASDAQ:AAPL) is one of the Big Five US tech firms, and also a top stock of Mitch Rubin’s Q2 portfolio. RiverPark Advisors, as of the second quarter, owns 193,239 shares in Apple Inc. (NASDAQ:AAPL), worth $26.46 million, representing 3.37% of the firm’s stock portfolio. In addition to the signature Apple Inc. (NASDAQ:AAPL) products like iPhones, iPads, MacBooks, and Apple Watches, Apple Inc. (NASDAQ:AAPL) is reportedly working on electric vehicles which will be launched by 2025, if the growing patents are any indication of Apple Inc. (NASDAQ:AAPL) entering the automobile industry.
As of June, 138 hedge funds observed by Insider Monkey were long Apple Inc. (NASDAQ:AAPL), up from 127 in the first quarter.
Apple Inc. (NASDAQ:AAPL)’s Q3 EPS, as of October 28, was reported as $1.24, meeting analysts’ consensus estimates. Revenue for the quarter equaled $83.36 billion, missing estimates by -$1.62 billion.
Richard Kramer, an Arete analyst, on November 9, kept a Buy rating on Apple Inc. (NASDAQ:AAPL), raising the price target from $168 to $180. Apple Inc. (NASDAQ:AAPL) is positioned to avoid the chip shortages that are currently prevalent in the industry, according to Kramer, who raised his 2022 fiscal estimates for Apple Inc. (NASDAQ:AAPL) products above the consensus estimates.
Here is what ClearBridge Investments has to say about Apple Inc. (NASDAQ:AAPL) in its Q1 2021 investor letter:
“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
RiverPark Advisors’ Stake Value: $28,908,000
Percentage of RiverPark Advisors’ 13F Portfolio: 271
Number of Hedge Fund Holders: 3.68%
Amazon.com, Inc. (NASDAQ:AMZN) is another top stock pick of RiverPark Advisors, with the investment firm owning 8,403 shares in the US tech giant, worth $28.9 million, representing 3.68% of the firm’s investment portfolio as of June this year. Amazon.com, Inc. (NASDAQ:AMZN) is a force to be reckoned with in the ecommerce, cloud computing, online streaming, and artificial intelligence sectors.
Amazon.com, Inc. (NASDAQ:AMZN) announced Q3 earnings, and EPS for the quarter came in at $6.12, missing estimates by -$2.78. Revenue for the quarter was valued at $110.81 billion, missing estimates by -$784.89 million.
Tigress Financial analyst Ivan Feinseth raised the price target on Amazon.com, Inc. (NASDAQ:AMZN) from $4,370 to $4,460, keeping a Buy rating on the stock. He believes that Amazon.com, Inc. (NASDAQ:AMZN) can tackle the supply chain hindrances and benefit from the overwhelming 2021 holiday season, and achieve strong sales in 2022 as well.
As of the second quarter of 2021, 271 hedge funds tracked by Insider Monkey reported owning stakes in Amazon.com, Inc. (NASDAQ:AMZN), up from 243 in the preceding quarter.
Here is what Polen Capital has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter:
“Amazon has also lagged as its revenue growth is slowing on the very difficult comparisons from last year when this behemoth was growing revenue by over 40%. We still expect exceptional long-term growth and significant margin expansion as the fastest growing (and now large) segments of Amazon are also generating the highest margins.”
2. Microsoft Corporation (NASDAQ:MSFT)
RiverPark Advisors’ Stake Value: $28,960,000
Percentage of RiverPark Advisors’ 13F Portfolio: 3.69%
Number of Hedge Fund Holders: 238
Billionaire Bill Gates’ Microsoft Corporation (NASDAQ:MSFT) is a top stock pick of Mitch Rubin, who owns 106,904 shares in the tech conglomerate, via RiverPark Advisors as of June this year, worth $28.96 million. Microsoft Corporation (NASDAQ:MSFT) represents 3.69% of Rubin’s stock portfolio for the second quarter. Microsoft Corporation (NASDAQ:MSFT) is a top US tech firm, whose products such as Microsoft Office, Microsoft Windows, and Internet Explorer, as well as consumer electronics and personal computers are used worldwide.
As of the second quarter of 2021, 238 hedge funds out of the 873 elite funds monitored by Insider Monkey were bullish on Microsoft Corporation (NASDAQ:MSFT), down from 251 in the previous quarter.
On October 26, the Q3 EPS for Microsoft Corporation (NASDAQ:MSFT) came in at $2.27, surpassing analysts’ consensus estimates by $0.19. Revenue for the quarter totaled $45.32 billion, exceeding estimates by $1.33 billion.
Brad Zelnick from Deutsche Bank kept a Buy rating on Microsoft Corporation (NASDAQ:MSFT), with a $390 price target. He believes that Microsoft Corporation (NASDAQ:MSFT) is a solid software stock, and is positioned to benefit from the public cloud market, which will be valued at $127 billion in 2021.
Here is what Alger has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2021 investor letter:
“Microsoft Corporation was among the top contributors to performance during the third quarter. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Microsoft reported that Azure grew 51% in the second quarter. This high unit volume growth is a primary driver of the company’s higher share price, but the company’s strong operating execution has enabled margin expansion that has also helped to increase forward earnings estimates. We believe Microsoft’s subscription-based software offerings and cloud computing services have a durable growth profile because they enhance customers’ growth initiatives and help them to diminish costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases.”
1. Blackstone Inc. (NYSE:BX)
RiverPark Advisors’ Stake Value: $30,968,000
Percentage of RiverPark Advisors’ 13F Portfolio: 3.95%
Number of Hedge Fund Holders: 54
Blackstone Inc. (NYSE:BX) is the largest holding in Mitch Rubin’s investment portfolio as of June this year. Rubin, via RiverPark Advisors, owns 318,795 shares in Blackstone Inc. (NYSE:BX), worth $30.96 million, representing 3.95% of the firm’s Q2 portfolio. Blackstone Inc. (NYSE:BX) is an alternative investment management company specializing in private equity, real estate, and mergers and acquisitions.
As of the second quarter, 54 hedge funds in Insider Monkey’s exclusive database were bullish on Blackstone Inc. (NYSE:BX), up from 49 in the previous quarter.
On October 21, Blackstone Inc. (NYSE:BX) reported earnings for Q3. EPS for the quarter equaled $1.28, beating estimated EPS by $0.36. The Q3 revenue came in at $3.04 billion, surpassing revenue estimates by $872.27 million.
BofA analyst Craig Siegenthaler, on November 4, reinstated coverage of Blackstone Inc. (NYSE:BX) with a Buy rating and a $182 price target, indicating a total return potential of 30% to 35%. By expanding in the retail channel, Blackstone Inc. (NYSE:BX) can achieve exceptional earnings growth, according to the analyst.
Here is what Artisan Partners has to say about Blackstone Inc. (NYSE:BX) in its Q2 2021 investor letter:
“Top contributors included The Blackstone Group. Investment stalwart Blackstone Group’s virtuous cycle is in full swing. Throughout Blackstone’s history, excellent investment performance and capital protection have allowed the firm to increase fundraising in existing verticals as well as launch new endeavors. Historically, less than 10% of assets under management matures in any given year, and that number should move lower with continued growth in perpetual capital vehicles. Blackstone’s A+ rated balance sheet and capital-light model are the backbone of its 85% of cash flow distribution policy via a variable quarterly dividend.”
You can also take a look at 10 Stocks Making Noise After Releasing Their Earnings Reports and 10 Most Shorted Stocks Hedge Funds Are Buying.
