Is Vimeo a Smart Long-Term Buy?

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Small-Cap Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Longleaf Partners Small-Cap Fund added 0.76% in the first quarter, meaningfully outperforming the Russell 2000 Index, which declined 7.53%. Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Longleaf Partners Small-Cap Fund mentioned Vimeo, Inc. (NASDAQ:VMEO) and explained its insights for the company. Founded in 2004, Vimeo, Inc. (NASDAQ:VMEO) is a New York, New York-based video hosting, sharing, and services platform provider with a $1.0 billion market capitalization. Vimeo, Inc. (NASDAQ:VMEO) delivered a -66.43% return since the beginning of the year, while its 12-month returns are down by -87.91%. The stock closed at $6.03 per share on July 08, 2022. 

Here is what Longleaf Partners Small-Cap Fund has to say about Vimeo, Inc. (NASDAQ:VMEO) in its Q1 2022 investor letter:

“Vimeo – Another new purchase in 4Q 2021, Vimeo, which was spun out of IAC last year, declined among a dramatic pullback in digital software companies in the quarter. This software company is misperceived and traded as a consumer business when it actually has a strongly growing enterprise business, but it is growing solidly at a 20% topline rate in the capable hands of CEO Anjali Sud and Chairman Joey Levin from IAC.”

Rawpixel.com/Shutterstock.com

Our calculations show that Vimeo, Inc. (NASDAQ:VMEO) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Vimeo, Inc. (NASDAQ:VMEO) was in 24 hedge fund portfolios at the end of the first quarter of 2022, compared to 34 funds in the previous quarter. Vimeo, Inc. (NASDAQ:VMEO) delivered a -43.96% return in the past 3 months.

In July 2021, we also shared another hedge fund’s views on Vimeo, Inc. (NASDAQ:VMEO) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.