In this article, we will discuss top 5 stock picks of Ryan Frick’s Dorsal Capital. If you want to read our detailed analysis of Frick’s history, investment philosophy, and hedge fund performance, go directly to Top 10 Stock Picks of Ryan Frick’s Dorsal Capital: Facebook, Snap and More.
5. Snap Inc. (NYSE:SNAP)
Frick’s Stake Value: $175,461,000
Percentage of Ryan Frick’s 13F Portfolio: 8.19%
Number of Hedge Fund Holders: 64
Snap Inc. (NYSE:SNAP) is an American camera and social media company. It was incorporated in 2010 and is ranked fifth on the list of top 10 stock picks of Ryan Frick’s Dorsal Capital. Snap Inc. (NYSE:SNAP) shares have offered investors more than 192.32% in returns over the past 12 months.
On September 13, Goldman Sachs analyst Eric Sheridan initiated coverage of Snap Inc. (NYSE:SNAP) with a “Buy” rating and gave a price target of $90. On July 22, Snap Inc. (NYSE:SNAP) posted earnings for the second quarter of 2021. It reported earnings per share of $0.10, beating the market predictions by $0.11. In addition, the revenue over the period was $982 million, surpassing the estimates by 135.43 million.
The hedge fund managed by Ryan Frick owns 2.58 million shares in Snap Inc. (NYSE:SNAP) worth over $175.46 million, representing 8.19% of their portfolio. As of the second quarter of 2021, 64 hedge funds held stakes in Snap Inc. (NYSE:SNAP) compared to 73 funds in the first quarter.
RiverPark Funds, in its second-quarter 2021 investor letter, mentioned Snap Inc. (NYSE:SNAP). Here is what the fund said:
“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.”
