Thomas Steyer’s Farallon Capital is Buying These 5 Stocks

2. Zendesk, Inc. (NYSE:ZEN)

Number of Hedge Fund Holders: 57

Zendesk, Inc. (NYSE:ZEN) is a software company providing SaaS solutions to solve customer support tickets and enhance customer service. Farallon Capital owns 430,000 shares of Zendesk, Inc. (NYSE:ZEN) as of Q4 2021, worth $44.8 million, representing 0.23% of the total 13F securities. Zendesk, Inc. (NYSE:ZEN) is a new arrival in Thomas Steyer’s latest portfolio. 

On April 19, it was reported by Bloomberg that Zendesk, Inc. (NYSE:ZEN)’ new advisor, Qatalyst Partners, is exploring a possible sale of the company. Zendesk, Inc. (NYSE:ZEN) is meeting with potential buyers, including software companies and private equity firms. A final decision has yet to be made and the company could remain independent as well. 

Wolfe Research analyst Alex Zukin downgraded Zendesk, Inc. (NYSE:ZEN) on February 14 to Peer Perform from Outperform. The analyst cited Zendesk, Inc. (NYSE:ZEN)’s Q4 results that came with lower beat margins and the 2022 guidance for decelerating growth and margin contraction, as well as execution uncertainty, for the downgrade.

Barry Rosenstein’s JANA Partners is the biggest stakeholder of Zendesk, Inc. (NYSE:ZEN), with 2.3 million shares worth roughly $249 million. Overall, 57 hedge funds were bullish on the stock at the end of the December quarter.  

Here is what Carillon Tower Advisers has to say about Zendesk, Inc. (NYSE:ZEN) in its Q3 2021 investor letter:

“Zendesk provides customer support software solutions. After successfully navigating the early stages of the pandemic in 2020, the firm has seen its stock cool off on the threat of increased competition from low-cost alternatives. We do not believe that the competitive dynamics have been altered. In fact, the company’s annual revenue growth rate has accelerated in 2021 from the second half of 2020. The shares also currently trade at a deep discount to other cloud-based software vendors.”