We recently published a list of Top 10 Stocks to Buy According to Think Investments. In this article, we are going to take a look at where Snap Inc. (NYSE:SNAP) stands against other top stocks to buy according to Think Investments.
Think Investments is an investment firm based in San Francisco, with additional offices in Singapore and India. The firm focuses on long-term investments in both public and private companies, emphasizing creative research to identify high-potential opportunities. Specializing in technology-driven early-stage businesses, Think Investments partners with its strong management teams to build differentiated companies that generate high returns on invested capital. With a deep understanding of emerging markets and global technology, the firm is well-positioned to navigate complex investment landscapes.
Founded in 2013 by Shashin Shah, Think Investments has established itself as a key player in global markets. The firm has over $1 billion invested in Indian companies operating in the financial services, healthcare, technology, and consumer sectors. Think’s investment strategy is guided by Shah’s extensive experience in global equity markets, ensuring a disciplined approach to capital allocation. The firm’s commitment to long-term value creation has made it a trusted partner for relatively young companies looking to scale efficiently.
Shashin Shah, Founder and Managing Partner, brings decades of expertise in global investing. Before launching Think Investments, he was a partner at Valiant Capital, where he managed multiple international markets, including India, the U.S., Europe, Asia, the Middle East, and North Africa. Shah also worked at Blue Ridge Capital and Morgan Stanley, further honing his investing skills. His academic background includes a bachelor’s degree in computer engineering from the University of Mumbai and an MBA from the University of Texas, equipping him with a strong analytical and financial foundation.
In addition to leading Think Investments, Shah plays an active role in shaping the growth of innovative companies. He currently serves on the boards of Chaayos, a tea café chain, and Dream11, India’s leading fantasy sports platform. His leadership and strategic insights continue to drive Think’s success, solidifying its reputation as a premier investment firm in global markets.
As of its latest filing for the fourth quarter of 2024, Think Investments reported managing approximately $454.51 million in 13F securities, of which the firm’s top ten holdings account for 80.57%.
Our Methodology
The stocks discussed below were picked from Think Investments’ Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Snap Inc. (NYSE:SNAP)
Number of Hedge Fund Holders as of Q4: 44
Think Investments’ Equity Stake: $41.57 Million
Snap Inc. (NYSE:SNAP), a parent company of Snapchat, Spectacles, and Bitmoji, reported a strong performance in the fourth quarter, beating Wall Street expectations across key financial metrics. The company posted adjusted earnings per share of $0.16, surpassing analyst expectations of $0.14. Revenue came in at $1.56 billion, slightly above the projected $1.55 billion and marking a 14% increase year-over-year from $1.36 billion. Snap also reported a notable turnaround in profitability, with a net income of $9.1 million compared to a $248 million net loss in the same period last year. Daily active users reached 453 million globally, outperforming expectations of 451.1 million and reflecting the platform’s continued growth in engagement.
Looking ahead, Snap Inc. (NYSE:SNAP) projects its first-quarter 2025 revenue to range between $1.32 billion and $1.36 billion, with the midpoint exceeding analyst forecasts. However, the company anticipates adjusted earnings between $40 million and $75 million, slightly below estimates due to planned increases in operating expenses such as increased hiring, legal fees, and a seasonal shift in marketing investments. Despite this, Snap remains optimistic about scaling its operations, citing enhancements to its ad platform and a strengthened focus on small and medium-sized enterprises through improved go-to-market strategies.
Snap Inc. (NYSE:SNAP) also reaffirmed its commitment to sustainable long-term growth and financial health, balancing short-term expense increases with strategic investments aimed at expanding its user base and advertiser network. In addition to its financial outlook, Snap demonstrated its commitment to corporate social responsibility by pledging $5 million to assist communities and employees affected by the recent Los Angeles wildfires, reinforcing its role not only as a technology leader but also as a socially responsible corporation.
As of Q4 2024, Think Investments held more than 3.8 million shares in Snap Inc. (NYSE:SNAP), valued at over $41 million. Hedge fund interest in the company also increased, with 44 out of 1,009 funds tracked by Insider Monkey holding positions worth nearly $1.44 billion by the end of the quarter, up from 34 funds in Q3.
RiverPark Large Growth Fund stated the following regarding Snap Inc. (NYSE:SNAP) in its Q3 2024 investor letter:
“Snap Inc. (NYSE:SNAP): SNAP was a top detractor in the third quarter following a second quarter earnings report that fell short of high expectations. While the company reported strong Daily Active User (DAU) growth (432 million +10% year-over-year) and time spent watching content on the app (+25% year-over-year), revenue of $1.24 billion was below the midpoint of the company’s guidance and slightly below investor expectations. Management pointed to weakness in their Brand Advertising vertical, specifically highlighting demand for retail, technology, and entertainment advertising for slowing through the quarter. SNAP did exceed EBITDA expectations by $15 million due to better operating leverage, but guided third quarter EBITDA below expectations as the company plans to make some targeted investments around AI infrastructure.
We believe that improvements in SNAP’s ad platform and continued growth in DAU should lead to continued acceleration in revenue growth over the next several quarters and years. With 2023 revenue of $4.6 billion (as compared with Meta’s $134 billion), we believe SNAP has a long runway for both revenue growth and expanded profitability.”
Overall, SNAP ranks 3rd on our list of top stocks to buy according to Think Investments. While we acknowledge the potential of SNAP, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SNAP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
