In this article, we discuss the 10 stocks to consider in the portfolio of Gary Vaynerchuk. If you want to skip our detailed analysis of these stocks, go directly to Gary Vaynerchuk Stock Portfolio: 5 Stocks to Consider.
Gary Veynerchuk, a Belarusian-American investor with interests in the media and technology industries, has become one of the most famous finance and media personalities on the internet in recent years. This is not altogether surprising. The investor has an impressive stock portfolio and a legendary reputation in the tech world. His personal net worth is around $200 million. He owns his own media consulting firm, VaynerMedia, and also hosts shows on YouTube and a podcast on finance that is one of the most popular in the market.
Vaynerchuk has been a backer of big technology firms since before they became “big”. He was one of the earliest content creators on YouTube and Twitter, Inc. (NYSE:TWTR), two of the largest content platforms in the world today. Presently, in addition to his internet streaming ventures, he maintains a blog while managing his companies and sharing his market insights with top business news platforms. He is still invested in tens of explosive startups through his VaynerRSE investment portfolio, mostly in high growth domains like NFTs, crypto, and cybersecurity.
Some of the top stock picks of Gary Vaynerchuk over the years include Facebook, Inc. (NASDAQ:FB), Uber Technologies, Inc. (NYSE:UBER), and Twitter, Inc. (NYSE:TWTR), among others discussed in detail below. Vaynerchuk has achieved incredible success in the past decade or so by employing an investing strategy that places the focus on people instead of the technology or the product, and he regularly advises others to do the same on social media.
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Our Methodology
Here is our list of the 10 stocks to consider in the portfolio of Gary Vaynerchuk. It is important to clarify that many of these firms are not direct investments of the internet personality. They were picked from a careful assessment of the comments made by Vaynerchuk around the firms listed below over the past few years.
The hedge fund sentiment around each stock was gauged using the data of 873 hedge funds tracked by Insider Monkey.
Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Gary Vaynerchuk Stock Portfolio: Stock Picks
10. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders: 26
DraftKings Inc. (NASDAQ:DKNG) features on our list of stock picks by Gary Vaynerchuk because the company recently inked a deal with VaynerMedia, a consulting firm owned by the famous entrepreneur, to improve the social media presence of the brand. DraftKings also announced that it would launch a new internet show on American football with Vaynerchuk. The firm operates as a digital sports and entertainment company. In a blog post, Vaynerchuk has urged his followers to follow his venture with DraftKings.
On October 11, Citi analyst Jason Bazinet initiated coverage of DraftKings Inc. (NASDAQ:DKNG) stock with a Buy rating and a price target of $66, noting that the online sports market offered investors the chance for robust, long-term growth.
At the end of the second quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $927 million in DraftKings Inc. (NASDAQ:DKNG), down from 43 the preceding quarter worth $966 million.
Just like Facebook, Inc. (NASDAQ:FB), Uber Technologies, Inc. (NYSE:UBER), and Twitter, Inc. (NYSE:TWTR), DraftKings Inc. (NASDAQ:DKNG) is one of the stocks grabbing the headlines in the finance world.
In its Q2 2021 investor letter, Alger, an asset management firm, highlighted a few stocks and DraftKings Inc. (NASDAQ:DKNG) was one of them. Here is what the fund said:
“DraftKings is an online gaming operator. Its legacy Daily Fantasy Sports (DFS) allows users to virtually draft teams of players from professional sports leagues and potentially earn a payout based on how athletes perform. DraftKings Online Sports Betting (OSB) involves the company taking wagers or bets from customers on sporting events. The company’s third offering, Online Casino (iGaming), involves customers betting real money when playing casino games like slots and blackjack online.
DFS is legal in most states, while approximately 25% of the country’s population has access to OSB and approximately 10% has access to iGaming. Within a year, we expect approximately 40% or more of the population to have access to OSB as legalization moves rapidly.
The company reported a strong quarter, with revenues exceeding expectations by more than 30%. We think the stock underperformed due to the time period between the conclusion of March Madness and the start of the NFL season being a weaker betting period and concerns about more intense competition. Concerns around tough comps have also hindered performance of DraftKings shares. We note that monthly state data continues to be robust, showing no signs of slowing from reopening. We also believe DraftKings is increasing its potential to gain market share by moving its tech-platform to SBTech, which is a sports betting platform the company acquired as part of a SPAC deal. Legalization of sports betting by states has also been robust.”
9. Facebook, Inc. (NASDAQ:FB)
Number of Hedge Fund Holders: 266
Facebook, Inc. (NASDAQ:FB) represents one of the most successful investments of Vaynerchuk. In 2009, according to the Wall Street Journal, he invested $200,000 in the company because he believed in the founder Mark Zuckerberg and felt that the monetization plans of the company would work in the long-term. That investment was worth $12 million by the time the company debuted on the stock market in May 2012.
Facebook, Inc. (NASDAQ:FB) recently posted earnings results for the third quarter, reporting earnings per share of $3.22, beating estimates by $0.05. The revenue over the period was $29 billion, up 35% year-on-year.
At the end of the second quarter of 2021, 266 hedge funds in the database of Insider Monkey held stakes worth $42 billion in Facebook, Inc. (NASDAQ:FB), up from 257 in the preceding quarter worth $40 billion.
In addition to Uber Technologies, Inc. (NYSE:UBER) and Twitter, Inc. (NYSE:TWTR), Facebook, Inc. (NASDAQ:FB) is one of the stocks attracting the attention of hedge funds.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Facebook, Inc. (NASDAQ:FB) was one of them. Here is what the fund said:
“We continued to keep our learnings from 2020 in mind during the quarter as we sought to increase the up capture of the portfolio. We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks, including Facebook, while trimming our weighting to stable names, which now represent 47% of the portfolio. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”
8. Twitter, Inc. (NYSE:TWTR)
Number of Hedge Fund Holders: 89
Vaynerchuk has been a member of Twitter, Inc. (NYSE:TWTR) since May 2007 and was one of the earliest investors in the company. He told Business Insider in 2017 that he wanted to invest in technologies for the future and the company represented one way of doing it. According to the entrepreneur, Twitter was his very first investment in the big tech space, and was based on the intuition that big tech solved basic problems and saved time.
In July, investment advisory BMO Capital had maintained a Market Perform rating on Twitter, Inc. (NYSE:TWTR) stock and raised the price target to $70 from $65. Daniel Salmon, an analyst at the advisory, issued the ratings update.
At the end of the second quarter of 2021, 89 hedge funds in the database of Insider Monkey held stakes worth $6 billion in Twitter, Inc. (NYSE:TWTR), down from 107 in the preceding quarter worth $4.5 billion.
RGA Investment Advisors, in its Q1 2021 investor letter, mentioned Twitter, Inc. (NYSE:TWTR). Here is what the fund has to say in its letter:
“‘The bird has wings’—Twitter’s quarter started off somewhat ominously, with Twitter the worst performing stock in the S&P 500 following the January 6th insurrection and questions about the stickiness of the userbase after permanently suspending the account of President Trump.8 By the end of the quarter, Twitter was one of the best performers in the index after exceptionally strong fourth quarter earnings and guidance for the year and an upbeat analyst day that highlighted a rapidly evolving product roadmap placing the timeline at the center of ephemeral (fleets), long form (Revue) and voice (Spaces). The improvements to the experience makes the platform more accessible and provides more opportunity to continue growing the userbase. Importantly, Twitter also embraced what we have been calling “creative empowerment” in previewing SuperFollows and a host of features designed to help content creators and contributors monetize their own audience on Twitter itself. These developments, alongside considerable progress on the advertising platform give us growing conviction that Twitter will deliver on its largely untapped opportunity—in other words, the value creation opportunity on top of the low multiple we were able to build our position at. Elliot spoke at length about these developments on Yet Another Value Podcast with Andrew Walker and The Business Brew with Bill Brewster, which we invite you to check out.”
7. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 49
Vaynerchuk has been one of the biggest backers of blockchain through the years. In 2017, before the crypto hype became the frenzy it is today, he admitted in a post on social media that he owned Coinbase Global, Inc. (NASDAQ:COIN), the crypto exchange that went public in April one of the biggest IPOs of the year so far. In a chat with Cheddar News in March, he said that Bitcoin, the most popular cryptocurrency, had gained legitimacy with the public but now faced a regulator challenge from governments.
On October 22, JPMorgan analyst Kenneth Worthington maintained an Overweight rating on Coinbase Global, Inc. (NASDAQ:COIN) stock and raised the price target to $375 from $372, appreciating the recent pickup in trading activity of the firm.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm ARK Investment Management is a leading shareholder in Coinbase Global, Inc. (NASDAQ:COIN) with 5.6 million shares worth more than $1.4 billion.
Facebook, Inc. (NASDAQ:FB), Uber Technologies, Inc. (NYSE:UBER), and Twitter, Inc. (NYSE:TWTR) are some of the top stocks to invest in right now, just like Coinbase Global, Inc. (NASDAQ:COIN).
6. Snap Inc. (NYSE:SNAP)
Number of Hedge Fund Holders: 64
Snap Inc. (NYSE:SNAP) represents one of the earliest investments of Vaynerchuk. As early as 2013, four years before the company went public, he was advising investors to get in on the action as he predicted that Snapchat would become the biggest social media sensation around the world since Facebook burst onto the scene in 2007. In 2017, the company debuted on the stock in the largest IPO in US history since Alibaba in 2014.
On October 23, investment advisory RBC Capital reiterated an Outperform rating on Snap Inc. (NYSE:SNAP) stock but lowered the price target to $70 from $88, noting the target reflected the lowered guidance numbers for the fourth quarter and the earnings miss in the third.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Lone Pine Capital is a leading shareholder in Snap Inc. (NYSE: SNAP) with 22.9 million shares worth more than $1.5 billion.
Facebook, Inc. (NASDAQ:FB), Uber Technologies, Inc. (NYSE:UBER), and Twitter, Inc. (NYSE:TWTR) are some of the elite stocks to invest in right now, in addition to Snap Inc. (NYSE:SNAP).
In its Q2 2021 investor letter, RiverPark Funds, an asset management firm, highlighted a few stocks and Snap Inc. (NYSE: SNAP) was one of them. 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.”
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Disclosure. None. Gary Vaynerchuk Stock Portfolio: 10 Stocks to Consider is originally published on Insider Monkey.
