Top 10 Stocks to Buy According to SRS Investment Management

3. Snap Inc. (NYSE:SNAP)

Number of Hedge Fund Holders as of Q4: 44

SRS Investment Management’s Equity Stake: $794 Million 

Snap Inc. (NYSE:SNAP), a parent company of Snapchat, Spectacles, and Bitmoji, reported strong fourth-quarter earnings, surpassing Wall Street expectations. The company posted adjusted earnings per share of $0.16, exceeding the forecasted $0.14. Snap’s global daily active users reached 453 million, outperforming projections of 451.1 million. Revenue was reported as $1.56 billion, slightly above the expected $1.55 billion and a 14% year-over-year increase from $1.36 billion, while the company reported a net income of $9.1 million—an improvement from the $248 million net loss recorded in the previous year’s fourth quarter.

For the first quarter of 2025, Snap Inc. (NYSE:SNAP) expects revenue between $1.32 billion and $1.36 billion, with the midpoint surpassing analyst estimates of $1.33 billion. However, adjusted earnings are projected to range between $40 million and $75 million, falling short of the anticipated $78.5 million due to planned investments. The company cited increased hiring, legal expenses, and a seasonal shift in marketing costs as reasons for an 11% to 12% rise in adjusted operating expenses. Despite this, Snap Inc. (NYSE:SNAP) remains optimistic about scaling its business, leveraging improvements in its ad platform, and strengthening go-to-market strategies, particularly among small and medium-sized enterprises.

Looking ahead to 2025, Snap Inc. (NYSE:SNAP) plans to continue investing in its growth while working toward profitability. The company emphasized its commitment to long-term financial progress and strategic expansion. Additionally, Snap pledged $5 million to support communities and employees affected by the recent Los Angeles wildfires, with plans for further contributions in the future. This corporate responsibility initiative reflects the company’s broader mission to support both its stakeholders and the wider community.

As of Q4 2024, SRS Investment Management held more than 73 million shares in Snap Inc. (NYSE:SNAP), valued at almost $794 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.