In this article, we discuss the 5 best growth stocks to buy according to Mark Moore’s ThornTree Capital. If you want to read our detailed analysis of the hedge fund, go directly to see the 10 Best Growth Stocks to Buy According to Mark Moore’s ThornTree Capital.
5. DocuSign, Inc. (NASDAQ:DOCU)
Number of Hedge Fund Holders: 51
DocuSign, Inc. (NASDAQ:DOCU) is an American company that allows businesses to manage electronic agreements. The company made headway with its Q2 results as it posted an EPS of $0.47, beating the estimates by $0.07. Moreover, DocuSign, Inc. (NASDAQ:DOCU) earned $511.8 million in revenues, up 49.6% from the prior-year quarter.
After hitting a low of $79 per share in March 2020, DocuSign, Inc. (NASDAQ:DOCU) is currently traded at $249.6 per share. In the past five years, the share price has surged 528.3%. As of Q3, DocuSign, Inc. (NASDAQ:DOCU) represents 2.55% of ThornTree Capital’s 13F portfolio. Following the company’s strong quarterly earnings, Evercore ISI lifted its price target on the stock to $320 in September, while keeping an Outperform rating on the shares.
As per Insider Monkey’s Q3 data, 51 hedge funds tracked by Insider Monkey held stakes in DocuSign, Inc. (NASDAQ:DOCU), down from 58 in the previous quarter. These stakes hold a consolidated value of over $4.2 billion.
Carillon Tower Advisers mentioned DocuSign, Inc. (NASDAQ:DOCU) in its Q2 2021 investor letter. Here is what the firm has to say:
“DocuSign provides electronic signature solutions. The firm reported an excellent quarter and investors have appreciated the strong growth combined with the excellent margins the company has posted. DocuSign has a long runway of growth ahead and we believe that it remains in a favorable position to continue gaining market share from traditional manual and paper-based signature solutions.”
4. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 50
Insider Monkey’s data for Q3 presented a spike in hedge fund interest in Cloudflare, Inc. (NYSE:NET), an American web infrastructure company. At the end of Q3, 50 hedge funds held positions in the company, up from 43 in the previous quarter. These stakes are valued at $958.4 million.
Cloudflare, Inc. (NYSE:NET) announced its Q3 results on November 4, surpassing analysts’ estimates on all accounts. The company’s revenue for the quarter stood at $172.3 million, up 51% from the prior-year quarter. After the company’s solid Q3 results, both Wells Fargo and Mizuho lifted their price targets on Cloudflare, Inc. (NYSE:NET) to $210 and $190, respectively.
As of Q3, Cloudflare, Inc. (NYSE:NET) represents 4.31% of ThornTree Capital’s 13F portfolio. The hedge fund started building its position in the company in Q1 of 2021. D E Shaw was the largest shareholder of Cloudflare, Inc. (NYSE:NET) in Q3, holding a $150 million worth of stake.
3. Smartsheet Inc. (NYSE:SMAR)
Number of Hedge Fund Holders: 50
Recently, Goldman Sachs named Smartsheet Inc. (NYSE:SMAR) as one of its best high-growth stocks in 2022. It is a software company that provides work management services to its users. With strong growth prospects and an attractive price valuation, Smartsheet Inc. (NYSE:SMAR) remains one of the best growth stocks to buy according to Mark Moore’s ThornTree Capital.
In its fiscal Q2 2022 results, Smartsheet Inc. (NYSE:SMAR) posted an EPS of -$0.05, beating the estimates by $0.08. In September, BMO Capital raised its price target on Smartsheet Inc. (NYSE:SMAR) to $90, post its strong Q2 earnings, while keeping an Outperform rating on the shares.
At the end of Q3 2021, 50 hedge funds tracked by Insider Monkey reported owning stakes in Smartsheet Inc. (NYSE:SMAR), up from 49 in the previous quarter. The total worth of these stakes is over $1.37 billion.
2. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders: 96
An American cloud computing platform, Twilio Inc. (NYSE:TWLO) was recently supported at Oppenheimer as the firm sees an 86% upside in the stock. The firm lifted its price target on the stock to $550, while keeping an Outperform rating on the shares.
At the end of Q3, 96 hedge funds tracked by Insider Monkey held positions in Twilio Inc. (NYSE:TWLO), down from 98 in the previous quarter. The total value of these stakes is over $6.3 billion. Of these hedge funds, ARK Investment Management was the leading shareholder of Twilio Inc. (NYSE:TWLO) in Q3, holding a $1 billion worth of stake.
As of Q3, Twilio Inc. (NYSE:TWLO) represents 2.63% of ThornTree Capital’s 13F portfolio. In its Q3 earnings, Twilio Inc. (NYSE:TWLO) reported an EPS of $0.01, beating the estimates by $0.15. The company’s revenue for the quarter experienced a 65.2% growth from the prior-year quarter at $740.2 million.
1. Meta Platforms, Inc. (NASDAQ:FB)
Number of Hedge Fund Holders: 248
Even though Meta Platforms, Inc. (NASDAQ:FB), formerly known as Facebook, experienced a decline in the number of hedge funds having stakes in the company in Q3, Morgan Stanley remains bullish on the stock, owing to the company’s strong advertisement business. Recently, the firm lifted its price target on Meta Platforms, Inc. (NASDAQ:FB) to $365, representing an 8% upside, while keeping an Overweight rating on the shares.
Mark Moore’s ThornTree Capital started building its position in Meta Platforms, Inc. (NASDAQ:FB) sometime during Q2 of 2018.
Of the 867 hedge funds tracked by Insider Monkey, 248 hedge funds held positions in Meta Platforms, Inc. (NASDAQ:FB) in Q3, down from 266 in the previous quarter. These stakes hold a consolidated value of $38.5 billion.
In its recently-published Q3 investor letter, Jefferies Group mentioned Meta Platforms, Inc. (NASDAQ:FB). Here is what the firm has to say:
“While still early, FB is in the process of building the platforms that will ultimately support the development the Metaverse. We look at FB’s position through the lens of 4 current investment initiatives: 1) Oculus VR hardware, 2) Smart glasses, 3) Augmented Reality lenses, and 4) “Horizon Workrooms”
Oculus Virtual Reality hardware: Since acquiring Oculus in 2014 ($2B deal), FB has been focused on developing best-in-class hardware and complementary software & services to support VR experiences. The Oculus Quest 2 is FB’s newest VR headset; it retails at $299 and allows users to play games, try fitness classes, play sports, and watch concerts in virtual environments. Most importantly, Quest 2 is linked to users’ Facebook accounts, which means users can seamlessly connect with friends in virtual environments to play games or spend time together. We believe one of FB’s biggest differentiators in VR is its large array of non-gaming experiences that were designed for Oculus. For instance, users can explore extreme terrain in National Geographic Explore VR, join virtual fitness classes, or simulate being a chef. As FB’s hardware continues to improve and becomes less cumbersome, we would expect a flywheel of greater developer and user adoption of VR…” (Click here to see the full text)
You can also take a look at 10 Small-Cap Stocks With Huge Growth Potential and 10 Best Growth Stocks for the Next 10 Years
