In this article, we discuss the top 5 stock picks of Jack Ripsteen’s Potrero Capital Research. If you want our extensive analysis of Jack Ripsteen’s history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stock Picks of Jack Ripsteen’s Potrero Capital Research.
5. Shutterstock, Inc. (NYSE:SSTK)
Stake Value of Potrero Capital Research: $19,526,000
Percentage of Potrero Capital’s 13F Portfolio: 4.69%
Number of Hedge Fund Holders: 18
Shutterstock, Inc. (NYSE:SSTK) provides stock photos, stock music, and stock videos on a global scale. Shutterstock, Inc. (NYSE:SSTK) has a rich library of millions of royalty free photos, vector graphics, video clips, music, and illustrations which can be purchased for licensing. Shutterstock, Inc. (NYSE:SSTK) is one of the top stocks in Jack Ripsteen’s Q2 portfolio.
As of the end of the second quarter, Potrero Capital Research holds 198,899 shares in Shutterstock, Inc. (NYSE:SSTK), valued at $19.52 million.
The third quarter EPS for Shutterstock, Inc. (NYSE:SSTK) was $0.70, beating estimates by $0.12, as reported on October 26. Shutterstock, Inc. (NYSE:SSTK)’s revenue for Q3 was $194.44 million, also exceeding estimated revenue by $8.60 million.
Bernie McTernan, an analyst from Needham, on October 27 kept a Buy rating on Shutterstock, Inc. (NYSE:SSTK), raising the price target from $120 to $145. He believes that product enhancements will allow Shutterstock, Inc. (NYSE:SSTK) to accelerate revenue growth in FY22 and FY23.
Here is what Bernzott Capital Advisors has to say about Shutterstock, Inc. (NYSE:SSTK) in their Q4 2020 investor letter:
“Shutterstock (SSTK): Improved financial results and signs of recovering digital advertising markets both contributed to good stock performance for this provider of stock content. Its transition to a subscription business continues to progress.”
4. Callaway Golf Company (NYSE:ELY)
Stake Value of Potrero Capital Research: $21,278,000
Percentage of Potrero Capital’s 13F Portfolio: 5.11%
Number of Hedge Fund Holders: 39
Callaway Golf Company (NYSE:ELY) manufactures sports equipment on a global scale, specifically gold apparel and equipment. Their main merchandise includes golf balls, clubs, gloves, caps, and bags. Callaway Golf Company (NYSE:ELY) has a separate subsidiary, Callaway Apparel, for its activewear and athleisure line. Callaway Golf Company (NYSE:ELY) reaches customers via its online platform, and through famous golf equipment retailers. It is one of Jack Ripsteen’s top stock picks as of the second quarter.
Potrero Capital Research owns stakes valued at approximately $21.27 million in Callaway Golf Company (NYSE:ELY), representing 5.11% of the firm’s Q2 portfolio.
As of the end of Q2, 39 hedge funds in Insider Monkey’s database of elite funds were long Callaway Golf Company (NYSE:ELY), down from 40 in Q1.
Casey Alexander from Compass Point upgraded Callaway Golf Company (NYSE:ELY) to Buy from Neutral on October 12, with a $33 price target on the stock.
Here is what Bernzott Capital has to say about Callaway Golf Company (NYSE:ELY) in its Q2 2021 investor letter:
“Callaway Golf (ELY): The company is capitalizing on strong demand for golf equipment and recovering traffic at its recently acquired Topgolf unit. Revenues and profits for Callaway and Topgolf are both expected to surpass 2019 levels.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
Stake Value of Potrero Capital Research: $21,522,000
Percentage of Potrero Capital’s 13F Portfolio: 5.17%
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational tech conglomerate specializing in e-commerce, artificial intelligence, cloud computing, and digital streaming. Amazon.com, Inc. (NASDAQ:AMZN) was recently making headlines because employees were criticizing the overly demanding work culture, being underpaid, and a no vacation policy at the company. As a response to the employee feedback, Amazon.com, Inc. (NASDAQ:AMZN) launched Amazon FamilyFlex on November 3, a program that enables proper work life balance for employees, including parental leave, adoption assistance, the ability to create custom schedules, and swap shifts when feasible. Amazon.com, Inc. (NASDAQ:AMZN) is a top stock in Jack Ripsteen’s Q2 portfolio.
Potrero Capital Research owns 6,256 shares in Amazon.com, Inc. (NASDAQ:AMZN), valued at $21.52 million, representing 5.17% of the firm’s investment portfolio for the second quarter.
Amazon.com, Inc. (NASDAQ:AMZN) announced Q3 EPS on October 28, valued at $6.12. The actual EPS missed estimates by -$2.78. Amazon.com, Inc. (NASDAQ:AMZN)’s revenue was $110.81 billion, also missing analysts’ consensus estimates by -$784.89 million.
Citi analyst Jason Bazinet on November 2 kept a Buy rating on the stock, while lowering Amazon.com, Inc. (NASDAQ:AMZN)’s price target from $4,175 to $4,100. Even though the analyst sees potential for growth in Amazon.com, Inc. (NASDAQ:AMZN)’s B2B services, the price target was lowered to reflect the poor Q3 performance.
Amazon.com, Inc. (NASDAQ:AMZN) is the most popular stock among the hedge funds. At the end of the second quarter, 271 funds were long Amazon.com, Inc. (NASDAQ:AMZN), up from 243 in the first quarter.
Here is what Polen Capital has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter:
“Amazon has also lagged as its revenue growth is slowing on the very difficult comparisons from last year when this behemoth was growing revenue by over 40%. We still expect exceptional long-term growth and significant margin expansion as the fastest growing (and now large) segments of Amazon are also generating the highest margins.”
2. Alphabet Inc. (NASDAQ:GOOG)
Stake Value of Potrero Capital Research: $24,389,000
Percentage of Potrero Capital’s 13F Portfolio: 5.85%
Number of Hedge Fund Holders: 155
Alphabet Inc. (NASDAQ:GOOG) is a tech conglomerate holding company, with subsidiaries like Google, Calico, Sidewalk Labs, Verily, and DeepMind, among others.
Potrero Capital Research owns 9,731 shares in Alphabet Inc. (NASDAQ:GOOG), worth $24.38 million, making up 5.85% of the firm’s Q2 portfolio. Overall, 155 hedge funds owned stakes in the tech conglomerate at the end of June.
The third quarter earnings were reported on October 26 by Alphabet Inc. (NASDAQ:GOOG). The Q3 EPS came in at $27.99, exceeding analysts’ expectations by $4.75. Alphabet Inc. (NASDAQ:GOOG)’s Q3 revenue also beat estimates by $1.83 billion at $65.12 billion.
Morgan Stanley analyst Brian Novak on November 2 raised Alphabet Inc. (NASDAQ:GOOG)’s price target from $3,000 to $3,200 with an Overweight rating. He stated that Q3 performance exceeded expectations, and the free cash flow at Alphabet Inc. (NASDAQ:GOOG) will be sufficient even if the company continues to make expensive investments.
Here is what Alger has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 investor letter:
“Alphabet Inc. was among the top contributors to performance during the third quarter. Alphabet is a leading internet search provider and is a beneficiary in the share shift of advertising dollars from traditional mediums like television, radio and newspapers to digital platforms. The company is a leader in implementing Al, autonomous vehicles and cloud computing it and owns the highly trafficked YouTube property. Alphabet contributed to performance due to a strong quarterly report highlighted by revenue growth that beat consensus expectations across segments. The company’s core search revenues have increased 10% over the past two years, with cloud computing increasing 8%. Results from YouTube also exceeded expectations. When discussing quarterly results, Alphabet management said retail, entertainment and travel were end markets that were particularly strong. The fixed cost structure of Alphabet’s search service resulted in profitability resulting from the increase in revenues being better than expected.”
1. NortonLifeLock Inc. (NASDAQ:NLOK)
Stake Value of Potrero Capital Research: $25,260,000
Percentage of Potrero Capital’s 13F Portfolio: 6.06%
Number of Hedge Fund Holders: 36
NortonLifeLock Inc. (NASDAQ:NLOK) is a cybersecurity company that has been in business for over four decades to prevent identity theft and secure digital data. NortonLifeLock Inc. (NASDAQ:NLOK) has cyber safety products for gamers such as Norton360, Norton AntiVirus, and Norton Secure VPN, among others. It is the largest holding in the investment portfolio of Potrero Capital Research, and ranks first on our list of the top stock picks of Jack Ripsteen.
Ripsteen owns 928,006 shares in NortonLifeLock Inc. (NASDAQ:NLOK), worth $25.26 million, making up 6.06% of his Q2 portfolio.
At the end of June, 36 hedge funds were bullish on NortonLifeLock Inc. (NASDAQ:NLOK), up from 32 in the previous quarter.
You can also take a look at 10 Stocks to Buy in 2021 According to Guy Spier’s Aquamarine Capital and Billionaire Stephen Mandel’s Top 10 Stock Picks.
