RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. During the first quarter, the markets performed strongly. The Russell 1000 Growth Index (RLG) and the S&P 500 index returned 11.41% and 10.56%, respectively during the quarter and RPX returned 9.20%. The monthly inflation readings in the first quarter exceeded market expectations. A couple of megatrends that drove the markets higher were GLP-1 weight loss drugs and everything related to artificial intelligence (AI). In addition, please check the fund’s top five holdings to know its best picks in 2024.
RiverPark Large Growth Fund highlighted stocks like Snap Inc. (NYSE:SNAP), in the first quarter 2024 investor letter. Snap Inc. (NYSE:SNAP) is a technology company. The one-month return Snap Inc. (NYSE:SNAP) was -6.65%, and its shares gained 45.73% of their value over the last 52 weeks. On May 30, 2024, Snap Inc. (NYSE:SNAP) stock closed at $15.17 per share with a market capitalization of $24.895 billion.
RiverPark Large Growth Fund stated the following regarding Snap Inc. (NYSE:SNAP) in its first quarter 2024 investor letter:
“Snap Inc. (NYSE:SNAP): SNAP was our top detractor in the quarter despite reporting fourth quarter results generally in line with or better than expectations. Revenue growth of 5% was roughly in line with investor estimates and at the high end of guidance, and EBITDA of $159 million was $49 million better than estimates. Daily Active Users (DAUs) were also ahead of investor expectations, ending the quarter at 414 million (about 2 million better), driven by continued innovation in Snap’s offerings. Revenue guidance for 1Q24 was also roughly in line with investor estimates, but EBITDA guidance of negative $55-95 million was well below estimates. The company pointed to increased infrastructure costs and a US focused marketing campaign for the lower-than-expected margin guidance.
Although the company continues to face near-term macro headwinds, we believe SNAP can accelerate its revenue growth over the next several years. With 2023 revenue expected to be $4.6 billion (as compared with Meta’s $134 billion), we believe SNAP has a long runway for both revenue growth and expanded profitability as it improves platform functionality, continues to grow its audience (daily active users continue to grow at a double-digit rate), and expands its monetization.”
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Snap Inc. (NYSE:SNAP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Snap Inc. (NYSE:SNAP) at the end of the first quarter which was 44 in the previous quarter.
Accelerating and diversifying revenue growth is Snap Inc.’s (NYSE:SNAP) top strategic target for 2024. Snap has made a great start to the year, and generated $1.195 billion in revenues in the first quarter, up 21% from prior year period.
In another article, we discussed Snap Inc. (NYSE:SNAP) and shared the list of biggest internet companies in the US. Snap Inc. (NYSE:SNAP) was atop contributor of RiverPark Large Growth Fund in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.
