3. 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.”
