RiverPark Funds, an investment management company, released its “RiverPark Large Growth Fund” third quarter 2022 investor letter — a copy of which can be downloaded here. For the quarter, the RiverPark Large Growth Fund (the “Fund”) lost 3.3% – a bit better than the S&P 500 (-4.9% for the quarter) and about in line with the Russell 1000 Growth index (-3.6% for the quarter). Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.
In its Q3 2022 investor letter, RiverPark Large Growth Fund mentioned Snap Inc. (NYSE:SNAP) and explained its insights for the company. Founded in 2011, Snap Inc. (NYSE:SNAP) is a Santa Monica, California-based camera and social media company with a $15.4 billion market capitalization. Snap Inc. (NYSE:SNAP) delivered a -79.59% return since the beginning of the year, while its 12-month returns are down by -82.67%. The stock closed at $9.60 per share on October 25, 2022.
Here is what RiverPark Large Growth Fund has to say about Snap Inc. (NYSE:SNAP) in its Q3 2022 investor letter:
“SNAP shares were our top detractor for the quarter on its July decline from weaker revenue growth relative to guidance (which had been reduced in May) and the fact that management did not provide an outlook for 3Q. Shares subsequently rebounded somewhat as the company announced better-than-expected near-term revenue growth, while announcing a broadbased cost restructuring.
Although the company continues to face near-term macro headwinds and difficult year-over-year comparisons from COVID-fueled quarters last year, we believe SNAP can reaccelerate its revenue growth to greater than 20% annually over the next several years. With TTM revenue of $4.5 billion (as compared with Meta’s $120 billion), 347 million daily average users (about 1/10 of Meta’s), and $14 TTM ARPU (about 1/3 of Meta’s), we believe SNAP has a long runway for both revenue growth and expanded profitability as it improves its platform functionality, continues to grow its audience (daily active users continue to grow at a double-digit rate), and expands its monetization.”
Photo by Alexander Shatov on Unsplash
Our calculations show that Snap Inc. (NYSE:SNAP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Snap Inc. (NYSE:SNAP) was in 44 hedge fund portfolios at the end of the second quarter of 2022, compared to 54 funds in the previous quarter. Snap Inc. (NYSE:SNAP) delivered a -0.31% return in the past 3 months.
In September 2022, we also shared another hedge fund’s views on Snap Inc. (NYSE:SNAP) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.
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Disclosure: None. This article is originally published at Insider Monkey.
