In this article, we will discuss the 5 tech stock picks of Seth Wunder’s Black-And-White Capital. If you want to read our detailed analysis of Wunder’s history, investment philosophy, and hedge fund performance, go directly to the 10 Tech Stock Picks of Seth Wunder’s Black-And-White Capital.
5. RingCentral, Inc. (NYSE:RNG)
Black-And-White Capital’s Stake Value: $42,076,000
Percentage of Black-And-White Capital’s 13F Portfolio: 4.34%
Number of Hedge Fund Holders: 47
The hedge fund started building its position in the company in the fourth quarter of 2020 and currently holds over 144,800 shares in RingCentral, Inc. (NYSE:RNG), valued at $42.08 million. The company represents 4.34% of the hedge fund’s 13F portfolio.
Wells Fargo analyst Michael Turrin recently lowered his price target on RingCentral, Inc. (NYSE:RNG) to $375 from $425 and kept an “Overweight” rating on the shares.
Chase Coleman and Feroz Dewan’s Tiger Global Management LLC is the company’s most significant stakeholder, with 3.94 million shares worth $1.14 billion.
In its second-quarter investor letter, Baron Opportunity Fund highlighted a few stocks, and RingCentral Inc. (NYSE:RNG) is one of them. Here is what the fund said:
“RingCentral, Inc. has been a three-year portfolio holding and remains a leader in the cloud unified communications-as-a-service (UCaaS) space, which includes voice, video, messaging, and call center services. But after posting its third quarter in a row of accelerating revenue growth in the first quarter, RingCentral’s shares began to sell off on fears around heightened competition with both Microsoft Teams, of which RingCentral is a partner, and with Zoom Communications, a former partner who has launched its own voice communications offering. Shares sold off further during the period with the rotation out of secular growth names into cyclicals. We used the pullback in the shares to add significantly to our position given RingCentral’s best-in-class UCaaS technology, including five 9’s contractual service commitments (fully operational 99.999% of the time) for voice, which is orders of magnitude above its competitors; presence in roughly 40 countries; data governance and security requirements; number portability with all the relevant domestic and international carriers; and positioning as the Gartner Magic Quadrant UCaaS Leader. The UCaaS market is still quite early in its adoption curve, with only about 3% penetration of the roughly 400 million existing business landline seats in operation today. We believe RingCentral is in a solid position to capture meaningful share of this market, with its exclusive partnerships with legacy landline players like Avaya, Atos, and Alcatel, which effectively gives it a “hunting license” for about half of those 400 million legacy seats, leveraging joint go-to-market efforts with each partner. We remain confident that RingCentral is well positioned to achieve at least 30% top-line growth for years to come, along with steadily improving operating margins and free cash flow generation.”
