In this piece, we will take a look at the top 5 stocks to buy now according to Chet Kapoor’s Tenzing Global. If you want a detailed look at Mr. Kapoor’s portfolio, his background, and investment strategy, then head on to 11 Stocks to Buy Now According to Chet Kapoor’s Tenzing Global.
5. 2U, Inc. (NASDAQ:TWOU)
Tenzing Global’s Holdings: $10 million
Percentage of Tenzing Global Portfolio: 3.4%
Number of Hedge Fund Holders: 22
2U, Inc. (NASDAQ:TWOU) is an American company that targets the education sector by providing colleges and universities with online degree programs and short technical courses. It is headquartered in Maryland and caters to customers in the U.S., U.K., South Africa, and Hong Kong.
Mr. Kapoor’s investment firm held 300,000 2U, Inc. (NASDAQ:TWOU) shares as of Q3 2021. These were worth $10 million and represented 3.4% of its portfolio. During the same time period, 22 of the 867 hedge funds polled by Insider Monkey had holdings in the educational firm.
2U, Inc. (NASDAQ:TWOU) brought in $232 million in revenue and -$0.23 in non-GAAP EPS for its third fiscal quarter, meeting analyst estimates for revenue and beating them for EPS. Its price target was lowered to $40 from $46 by BMO Capital in a November 2021 analyst note that outlined a positive future for the company given the growth in online learning in the wake of the ongoing pandemic.
2U, Inc. (NASDAQ:TWOU)’s the largest investor is Catherine D. Wood’s ARK Investment Management. It owns a $282 million stake in the company through 8.4 million shares.
4. Brightcove Inc. (NASDAQ:BCOV)
Tenzing Global’s Holdings: $40 million
Percentage of Tenzing Global Portfolio: 13.65%
Number of Hedge Fund Holders: 17
Brightcove Inc. (NASDAQ:BCOV) operates a cloud-based video distribution platform. Additionally, it also provides a video player, a live streaming platform, a video encoding service, and an employee training platform for firms. It is headquartered in Boston, Massachusetts.
In its Q3, Brightcove Inc. (NASDAQ:BCOV) brought in $52 million in revenue and $0.05 in non-GAAP EPS, pleasing Wall Street by beating both metrics’ estimates. However, as the company’s key executives announced their retirement, Northland removed its $23 price target for the firm in October 2021, outlining that the upcoming fiscal year doesn’t hold any fireworks for the video firm.
Tenzing Global held 3.5 million Brightcove Inc. (NASDAQ:BCOV) shares during Q3 2021, in a $40 million stake that made up 13.65% of its portfolio. 17 of the 867 hedge funds polled by Insider Monkey also held stakes in the video company in Q3 2021.
Douglas T. Granat’s Trigran Investments is Brightcove Inc. (NASDAQ:BCOV)’s the largest investor through owning 4.8 million shares that are worth $55 million.
3. Yelp Inc. (NYSE:YELP)
Tenzing Global’s Holdings: $58.6 million
Percentage of Tenzing Global Portfolio: 19.82%
Number of Hedge Fund Holders: 26
Yelp Inc. (NYSE:YELP) is an American online business catalog. It allows businesses to tailor their advertisements to reach specific customer subsets that they feel are best suited for their products. Additionally, the company also provides reservation services, waitlist subscription services, and a platform for businesses to analyze big data.
As Q3 2021 came to an end, Mr. Kapoor’s investment firm held 1.5 million Yelp Inc. (NYSE:YELP) shares. These were worth $58.6 million and represented 19.82% of its portfolio. At the same time, 26 of the 867 hedge funds polled by Insider Monkey owned the firm’s shares.
Yelp Inc. (NYSE:YELP) beat revenue and EPS estimates in its third quarter, by bringing in $269 million and $0.23 in the metrics, respectively. Credit Suisse raised Yelp Inc. (NYSE:YELP)’s price target to $53 from $43 in August 2021, outlining that increased traffic and decreasing costs were positives for the firm.
Yelp Inc. (NYSE:YELP)’s largest investor is Ken Fisher’s Fisher Asset Management. It owns 3.5 million shares worth $133 million.
2. Uber Technologies, Inc. (NYSE:UBER)
Tenzing Global’s Holdings: $59.3 million
Percentage of Tenzing Global Portfolio: 20.06%
Number of Hedge Fund Holders: 143
Uber Technologies, Inc. (NYSE:UBER) is an American company known for its ridesharing application platform. Initially starting out as a service that connected riders with drivers, Uber Technologies, Inc. (NYSE:UBER) has diversified its services to several areas such as food delivery using aerial vehicles.
Uber Technologies, Inc. (NYSE:UBER) raked in $4.8 billion in revenue and -$1.28 in GAAP EPS for its Q3, beating analyst revenue estimates and missing the ones for EPS by a mile. Following the earnings results, Stifel reduced the company’s price target by $3 to $55, outlining that while the company is performing well, future estimates merit a small reduction.
Tenzing Global held 1.3 million Uber Technologies, Inc. (NYSE:UBER) during Q3 2021, which equaled $59.3 million and made up 20% of its portfolio. Of the 867 hedge funds part of a Q3 2021 Insider Monkey poll, 143 held a stake in the company.
Brad Gerstner’s Altimeter Capital Management is Uber Technologies, Inc. (NYSE:UBER)’s largest investor, through a $1 billion investment via 24.5 million shares.
ClearBridge Investments mentioned Uber Technologies, Inc. (NYSE:UBER) in its Q2 2021 investor letter, outlining that:
“The pandemic has also brought attention to the question of gig worker employment status for companies, including ClearBridge holdings Uber and Lyft. In the U.K., Uber proactively classified its drivers as “workers” ahead of final rulings from the British court system. The worker status in the U.K. is a designation between self-employed and employed status that entitles drivers to minimum wage, holiday pay and in some cases a pension.
ClearBridge has engaged with Uber on labor issues since its IPO, and we have given feedback over that time to the CEO, CFO, Chief Legal Officer and Investor Relations on labor relations as well as strategy and communications. Uber’s agreement on this designation is ahead of other competitors in the market and the legal mandate represents a step forward in the company’s thinking about labor. The agreement represents a short-term hit to earnings, yet in some ways it places Uber ahead of the market in its ability to balance labor and shareholder interests. Workers benefit from improved conditions, with new contributions amounting to roughly 3% of a driver’s earnings, while Uber establishes more certainty on costs and visibility into its regulatory environment and operation conditions in the future.”
1. Gogo Inc. (NASDAQ:GOGO)
Tenzing Global’s Holdings: $72.6 million
Percentage of Tenzing Global Portfolio: 24.5%
Number of Hedge Fund Holders: 19
Gogo Inc. (NASDAQ:GOGO) is an internet and entertainment services provider for airlines and the aviation sector. Its services include wireless entertainment and inflight connectivity to commercial and business aviation customers in the U.S. and globally.
Mr. Kapoor’s Tenzing Global owned a stake worth $72 million in Gogo Inc. (NASDAQ:GOGO) as of the third quarter of this year. This was through 4.2 million shares and represented 24.5% of the firm’s investment portfolio. Insider Monkey’s survey of 867 hedge funds during the same time period revealed that 19 had owned a stake in the connectivity and entertainment firm.
Gogo Inc. (NASDAQ:GOGO)’s largest investor is D. E. Shaw’s investment firm D E Shaw who owns 4.3 million shares worth $74 million.
During its third quarter, Gogo Inc. (NASDAQ:GOGO) earned $87 million in revenue and $0.16 in GAAP EPS, beating analyst estimates for both. JPMorgan increased the company’s price target to $16 from an earlier $11 in October 2021, highlighting that record equipment sales brightened up the company’s future outlook.
You can also take a peek at the 10 Back-to-Work Stocks to Buy Now and 10 Remote Work Stocks to Buy Now.
