Top 5 Stock Picks of Jacob Doft’s Highline Capital Management

1. Vimeo, Inc. (NASDAQ:VMEO)

Highline Capital Management’s Stake Value: $13,400,000

Percentage of Highline Capital Management’s 13F Portfolio: 11.18%

Number of Hedge Fund Holders: 48

Vimeo, Inc. (NASDAQ:VMEO) is the largest holding in Jacob Doft’s portfolio as of June this year. Highland Capital Management owns 273,474 shares in Vimeo, Inc. (NASDAQ:VMEO), worth $13.4 million, representing 11.18% of the firm’s Q2 portfolio. Vimeo, Inc. (NASDAQ:VMEO) is an American video hosting platform that allows high definition video sharing across multiple devices. Vimeo, Inc. (NASDAQ:VMEO) operates an SaaS platform, where subscribers can gain access to content creation tools, editing software, broadcasting and enterprise software solutions, and a platform where clients and professionals can collaborate. 

Vimeo, Inc. (NASDAQ:VMEO) reported Q3 earnings on November 3, with the EPS for the period being -$0.07, beating estimates by $0.03. Revenue for the quarter came in at $100.19 million, missing estimates by -$1,410. 

BMO Capital analyst Daniel Salmon, on November 5, kept a Market Perform rating on Vimeo, Inc. (NASDAQ:VMEO), lowering the price target from $42 to $28, citing muted growth for 2022 and tough comps. 

As of the second quarter,  48 hedge funds tracked by Insider Monkey reported owning stakes in Vimeo, Inc. (NASDAQ:VMEO), worth $1.12 billion. 

Here is what Alphyn Capital Management has to say about Vimeo, Inc. (NASDAQ:VMEO) in its Q2 2021 investor letter:

“Clients will notice a new ticker, VMEO, on your brokerage statements following its spin-out from IAC. I profiled IAC’s companies, including Vimeo, in some detail last year. The pandemic accelerated the use of video by both enterprises and small businesses, and I believe this will continue given the high engagement that video generates. The most recent numbers bear this out: May revenues rose 42% from a year earlier while subscriber base and average revenue per user increased 18%. With its comprehensive set of tools to make video creation more accessible, Vimeo has a great opportunity to capture a share of this growth. It further benefits from an attractive customer acquisition funnel – 65% of Fortune 500 enterprises have at least one self-serve Vimeo subscription (with ARPU6 of $250). The company is building out its sales team to help upsell these into enterprise accounts (with ARPU of $12,000). Finally, by buying IAC shares ahead of the spin, we received a long-term, high-growth SAAS “call option” at a much more palatable valuation than the current 20x price-to-sales. Historically, it has been very rewarding to hold onto IAC spins…”

You can also take a look at 10 Best Stocks to Buy According to Peter Lewis’ LFL Advisers and 10 Monthly Dividend Covered Call ETFs and ETNs You Can Count On. 

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