#3 GrubHub Inc (NYSE:GRUB)
– Shares held (as of September 30): 8.44 million
– Total Value (as of September 30): $205.4 million
Online and mobile restaurant pick-up and delivery order platform GrubHub Inc (NYSE:GRUB) reported disappointing results for its third quarter, with EPS of $0.13 on revenue of $85.7 million, missing both earnings and revenue expectations. In addition, the company’s quarterly EBITDA of $21.5 million was $3.4 million lower than analyst estimates. Although the results were disappointing and bears worry that Uber will encroach on GrubHub’s turf one day, the company is still growing very quickly, with revenue rising by 38.4% year-over-year and active diners rising by 41% year-over-year. 24 elite funds in our database were long GrubHub at the end of the third quarter.
#2 Twenty-First Century Fox Inc (NASDAQ:FOXA)
– Shares held (as of September 30): 11.28 million
– Total Value (as of September 30): $304.46 million
Luxor more than doubled its stake in Twenty-First Century Fox Inc (NASDAQ:FOXA) to over 11 million shares in the third quarter, good for almost 7% of the fund’s overall equity portfolio. For its first quarter of fiscal year 2016, the media and entertainment company reported EPS of $0.38, in-line with analyst estimates and revenue of $6.08 billion, missing expectations by $340 million. One piece of good news for Twenty-First Century Fox is that its cable network programming division is holding up nicely in the face of cord-cutting, as revenue from the cable segment rose by 7.2% year-over-year to $3.46 billion. Given the impending Presidential election in the U.S and all the advertising that comes with it, look for the division to do well for at least another year. Shares are down by 24% year-to-date and trade at 12.6-times forward earnings estimates.
#1 Yahoo! Inc. (NASDAQ:YHOO)
– Shares held (as of September 30): 10.57 million
– Total Value (as of September 30): $305.66 million
After careful consideration, Yahoo! Inc. (NASDAQ:YHOO)’s board recently announced that it will not spin-off its stake in Alibaba Group Holding Ltd (NYSE:BABA). Instead, the board is considering a reverse spin-off in which all Yahoo assets and liabilities outside of the company’s Alibaba stake will be transferred into a new company and the stock of that new company then be distributed to existing shareholders in a move that would create two separate public companies. The hope is that the reverse spin-off will force the market to award Yahoo more value for its core internet properties, which are currently priced at next-to-nothing given the value of its other assets. Hedge funds are optimistic about the stock, with 89 elite funds long Yahoo at the end of September.