TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” third-quarter investor letter. A copy of the letter can be downloaded here. Within equities, smaller or value-oriented stocks in developed economies yielded higher, whereas emerging markets saw the opposite trend. In the third quarter, the strategy returned 4.96% (gross) and 4.75% (net) while the Russell Midcap Growth Index returned 6.54%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital U.S. Mid Cap Growth Strategy highlighted stocks like Pinterest, Inc. (NYSE:PINS) in the third quarter 2024 investor letter. Pinterest, Inc. (NYSE:PINS) is a visual search and discovery platform that enables users to find ideas, such as recipes, home and style inspiration. The one-month return of Pinterest, Inc. (NYSE:PINS) was 6.22%, and its shares lost 8.71% of their value over the last 52 weeks. On December 6, 2024, Pinterest, Inc. (NYSE:PINS) stock closed at $32.28 per share with a market capitalization of $21.816 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Pinterest, Inc. (NYSE:PINS) in its Q3 2024 investor letter:
“For the Communication Services sector, we generally prefer to invest in media and services companies that are either well placed from an advertising perspective with a target audience or provide differentiated services. Pinterest, Inc. (NYSE:PINS) is an image-based social media company. In late July, the company reported solid second-quarter results, though with softer than expected third quarter guidance. Revenues were up nicely, benefiting from an increase in monthly active users. Strength for the quarter was broad-based across several verticals including retail, technology, autos, and financial services. However, food and beverage vertical which has been soft since fourth quarter of 2023, down ticked further which resulted in softer than expected third quarter guidance. This caused Pinterest stock to slide by -7%.”
A young, stylish woman using her smartphone to find inspiration for her latest DIY project.
Pinterest, Inc. (NYSE:PINS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held Pinterest, Inc. (NYSE:PINS) at the end of the third quarter which was 61 in the previous quarter. In the third quarter, Pinterest, Inc. (NYSE:PINS) delivered $898 million in revenues, up 18% year-over-year. While we acknowledge the potential of Pinterest, Inc. (NYSE:PINS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Pinterest, Inc. (NYSE:PINS) and shared the list of buzzing AI stocks making headlines. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.