In this article, we discuss the 5 stocks to invest in according to Carl Anderson’s Marcho Partners. If you want our detailed analysis of Anderson’s history, investment philosophy, and hedge fund performance, go directly to the 10 Stocks to Invest In According to Carl Anderson’s Marcho Partners.
5. Elastic N.V. (NYSE:ESTC)
Marcho Partners’ Stake Value: $168.4 million
Marcho Partners’ 13F Portfolio: 10.56%
Number of Hedge Fund Holders: 59
Elastic N.V. (NYSE:ESTC) is an American Dutch company that provides enterprise search, observability, security, logging and data analysis, data visualization, and infrastructure monitoring services. The company’s search technology is used by big names such as eBay Inc. (NASDAQ:EBAY), Lyft, Inc. (NASDAQ:LYFT), Uber Technologies, Inc. (NYSE:UBER), Wikipedia, and Tinder among many others.
On December 8, JPMorgan analyst Mark Murphy upgraded Elastic N.V. (NYSE:ESTC) from Neutral to Overweight. The analyst made no changes to the price target of $156.
Elastic N.V. (NYSE:ESTC) was mentioned by Greenhaven Road Capital in its third-quarter 2021 investor letter. Here is what it said:
“Elastic Software (ESTC) – Share prices are up more than threefold since our first purchases of Elastic Software. The company continues to report best-in-class net revenue retention (amount generated from existing customers) of 130%. With recent acquisitions, they are continuing their expansion into security. This is the company with the highest product velocity and largest addressable markets in our portfolio. With a massive base of customers using freemium/opensource products, there are fertile hunting grounds for growth.”
4. Wix.com Ltd. (NASDAQ:WIX)
Marcho Partners’ Stake Value: $173.09 million
Marcho Partners’ 13F Portfolio: 10.86%
Number of Hedge Fund Holders: 25
Wix.com Ltd. (NASDAQ:WIX) is an Israeli company that provides cloud-based web development services from 19 locations across the world. The company has also owned the famous online art community website DevianArt since 2017. It was acquired for $36 million.
At the end of the third quarter of 2021, Marcho Partners owned 883,266 shares of Wix.com Ltd. (NASDAQ:WIX) worth $173.09 million, making up 10.86% of the fund’s portfolio. Marcho Partners increased its holdings in the company by 68% in the same quarter.
Baron Funds mentioned Wix.com Ltd. (NASDAQ:WIX) in its third-quarter 2021 investor letter. Here is what the firm said:
“Underperformance of investments in IT, Consumer Discretionary, and Financials detracted the most from relative results. Wix.com Ltd. provides software that helps microbusinesses build and maintain their websites. Its stock was the largest detractor from performance after the company’s quarterly results showed a modest year-over-year slowdown in new customer additions, driven primarily by the waning of pandemic-driven trends.”
3. MercadoLibre, Inc. (NASDAQ:MELI)
Marcho Partners’ Stake Value: $175.9 million
Marcho Partners’ 13F Portfolio: 11.04%
Number of Hedge Fund Holders: 68
MercadoLibre, Inc. (NASDAQ:MELI) is Latin America’s most popular e-commerce and online auctions company. The company is headquartered in Argentina and incorporated in the USA. The company has approximately 175 million users and operates in 19 countries across Latin America.
The analysts have been quite optimistic about MercadoLibre, Inc. (NASDAQ:MELI) recently. On November 5, Barclays analyst Trevor Young raised the company’s price target to $2200 from $2100.
Panayotis Takis Sparaggis’ Alkeon Capital Management holds the largest stake in MercadoLibre, Inc. (NASDAQ:MELI) with 445,136 shares worth $747.56 million. With an increased activity of 20% in the third quarter of 2021, the company represents 1.26% of Alkeon’s portfolio.
MercadoLibre, Inc. (NASDAQ:MELI) was mentioned by LRT Capital Management in its third-quarter 2021 investor letter. Here is what the firm said:
“Mercadolibre, Inc. (MELI) – the LatAm eCommerce, shipping, and payments company, is now trading at a very attractive valuation – its lowest P/S ratio ever. The concerns here have to do with the recession in Brazil and slowing economic growth throughout the region.”
2. Shopify Inc. (NYSE:SHOP)
Marcho Partners’ Stake Value: $177.9 million
Marcho Partners’ 13F Portfolio: 11.16%
Number of Hedge Fund Holders: 73
Shopify Inc. (NYSE:SHOP) is a Canadian e-commerce company. As of May 2021, 1.7 million businesses use the company’s platform across 175 countries.
Out of 867 hedge funds in the Insider Monkey database, 73 of them held stakes in Shopify Inc. (NYSE:SHOP) in the third quarter of 2021, compared to 85 in the previous quarter, showing a decline in the hedge fund sentiment.
Here is what the investment management firm ClearBridge Investments said about Shopify Inc. (NYSE:SHOP) in its second-quarter 2021 investor letter:
“Shopify (is one of the) companies that have become go-to platforms for small and medium size businesses (SMBs) engaged in e-commerce and social media marketing, rebounded strongly in the quarter after being caught in the selloff among high-multiple growth names since Vaccine Monday. These and the portfolio’s other disruptors had thrived through the first part of the pandemic, leading us to trim positions into strength and reallocate cash into more attractively priced evolving opportunities and steady compounders that had been overly punished by lockdowns and a drop in economic activity.”
1. AppLovin Corporation (NASDAQ:APP)
Marcho Partners’ Stake Value: $240.7 million
Marcho Partners’ 13F Portfolio: 15.1%
Number of Hedge Fund Holders: 24
AppLovin Corporation (NASDAQ:APP) is a Californian mobile technology company which through its subsidiaries MAX, AppDiscovery, and SparkLabs allow developers to market, monetize, analyze, and publish their apps.
According to Insider Monkey’s database, 24 companies held stakes worth $1.1 billion in AppLovin Corporation (NASDAQ:APP) in the third quarter of 2021.
You can also take a peek at 10 Value Stocks to Buy According to Billionaire Paul Tudor Jones and 10 Healthcare Stocks to Buy According to Tiger Cub Chase Coleman.
