RiverPark Advisors, LLC recently published its Q3 2020 RiverPark Large Growth Fund commentary – a copy of which can be downloaded here. During the third quarter of 2020, the RiverPark Large Growth Fund returned 10.84% (institutional shares), compared to the total return of 8.93% by the S&P 500 Index. You should check out RiverPark’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, RiverPark highlighted a few stocks and Pinterest Inc. (NYSE:PINS) is one of them. Pinterest Inc. (NYSE:PINS) is a social networking service. Year-to-date, Pinterest Inc. (NYSE:PINS) stock gained 275.1% and on December 8th it had a closing price of $69.92. Here is what RiverPark said:
“Pinterest: Driven by the company’s impressive second quarter results, Pinterest advanced 87% for the quarter. Revenue grew a-much-better-than-expected 4% for the quarter, and then 50% in July, evidencing the recovery of the platform’s use by advertisers, who had pared back their campaigns during COVID. Catalog uploads increased 350% quarter-over-quarter, middle market advertisers—nearly half of revenue—grew robustly, and PINS continues to innovate with shop tabs, visual search, Shopping Ads and more. Monthly Average Users also significantly exceeded expectations, growing 39% year-over-year. Most importantly, for the first half of 2020, the number of Pinterest users who came to the platform with commercial intent grew by 50% and product-only searches grew eight-fold, while shoppable content grew 350% sequentially in the second quarter. These all bode well for future monetization.
Pinterest is a well-positioned internet platform with 416 million monthly active users (2/3 of whom are female). The platform reaches eight out of ten moms, half of all U.S. millennials ages 18-34, and half of total internet users in the United States. These users are coming to Pinterest to get inspiration for their home, their style, or upcoming travel, which often means they are actively looking for products and services to buy. PINS’ ARPU was only $3.73 last year, significantly less than SNAP’s $8, Twitter’s $25 and Facebook’s $50, and we expect it to continue to close this gap with its peers, as the company is still in the early stages of building an advertising product suite that fully taps its extremely attractive customer demographics. More users and increasing ARPU should drive a minimum of 30% revenue growth for years to come, as well as expand gross margins from its 61% in the second quarter to 75%-80% and improve operating margins from currently negative to more than 25%.”
As a result, you can see RiverPark believes Pinterest Inc. (NYSE:PINS) has the potential to be the next Twitter Inc. (NYSE:TWTR) by increased user engagement. In November 2020, we published an article revealing that Pinterest Inc. (NYSE:PINS) was one of the top 10 stocks just bought by billionaire Daniel Loeb.
In Q3 2020, the number of bullish hedge fund positions on Pinterest Inc. (NYSE:PINS) stock increased by about 51% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Pinterest’s growth potential. Our calculations showed that Pinterest Inc. (NYSE:PINS) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
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Disclosure: None. This article is originally published at Insider Monkey.
