In this piece, we will take a look at the top 5 stock picks of Mark Moore’s ThornTree Capital. If you want a more detailed take then also take a look at the Top 10 Stock Picks of Mark Moore’s ThornTree Capital.
5. StoneCo Ltd. (NASDAQ:STNE)
Value of Mr. Moore’s Stake: $40 Million
Percentage of ThornTree Capital’s 13F Portfolio: 5.42%
Number of Hedge Fund Holders: 44
StoneCo Ltd. (NASDAQ:STNE) is a Brazilian electronic commerce financial services provider that was founded in 2000 and is headquartered in George Town, Cayman Islands. It offers its products and services to brick and mortar and digital merchants, among others.
During its second quarter, StoneCo Ltd. (NASDAQ:STNE) earned R$613 million in revenue and -R$0.47 in non-GAAP EPS, marking for an 8% annual revenue drop. In an October 2021 analyst note, Susquehanna lowered the company’s price target to $65 and kept a Positive rating on the shares explaining that discussions with management indicated positive performance in the third quarter.
By the end of the second quarter 2021, Mr. Moore held 599,946 shares of StoneCo Ltd. (NASDAQ:STNE). These were worth $40 million and made up for 5.42% of his portfolio. During the same time, 44 out of 873 hedge funds polled by Insider Monkey had held a stake in the company.
StoneCo Ltd. (NASDAQ:STNE) largest investor is Rishi Renjen’s ROAM Global Management who owns 149,034 shares worth $9.9 billion.
4. Affirm Holdings, Inc. (NASDAQ:AFRM)
Value of Mr. Moore’s Stake: $41.4 Million
Percentage of ThornTree Capital’s 13F Portfolio: 5.59%
Number of Hedge Fund Holders: 25
Affirm Holdings, Inc. (NASDAQ:AFRM) operates a digital and mobile commerce platform in the United States and Canada which allows its customers to access a payment solution and avail services like an application. It also has a payments network that lets its customers pay in installments.
In an investor note issued in November 2021, Mizuho raised Affirm Holdings, Inc. (NASDAQ:AFRM) price target to $180 after updating its models following earnings season. By the end of its first fiscal quarter, the company reported $269 million in revenue and -$1.13 in GAAP EPS, missing analyst estimates for EPS.
During the second quarter, Mr. Moore held 615,871 Affirm Holdings, Inc. (NASDAQ:AFRM) shares. These were worth $41.4 million and represented 5.59% of his overall portfolio. At the same time, 25 out of the 873 hedge funds polled by Insider Monkey had held a stake in the company.
Affirm Holdings, Inc. (NASDAQ:AFRM)’s largest investor by the second quarter was Joshua Kushner’s Thrive Capital who owned 3.9 million shares worth $265 million.
3. Smartsheet Inc. (NYSE:SMAR)
Value of Mr. Moore’s Stake: $44.6 Million
Percentage of ThornTree Capital’s 13F Portfolio: 6.01%
Number of Hedge Fund Holders: 49
Smartsheet Inc. (NYSE:SMAR) is an American company headquartered in Bellevue, Washington that deals in cloud based workflow software. The company’s products allow its customers to coordinate their employee activities and visibility into daily operations alongside planning and coordination.
Mr. Moore held 619,963 shares of Smartsheet Inc. (NYSE:SMAR) by the end of the second quarter. These were worth $44.6 million and represented 6.01% of his portfolio. During the same time period, 49 out of the 873 hedge funds surveyed by Insider Monkey held a stake in the company.
During its second quarter, Smartsheet Inc. (NYSE:SMAR) earned $131 million in revenue and -$0.05 in non-GAAP EPS, beating analyst estimates on both counts. The company’s price target was raised to $90 by BMO Capital in a September 2021 analyst note which highlighted that a good total addressable market and remote working trends should serve the company well.
Smartsheet Inc. (NYSE:SMAR)’s largest investor is Panayotis Takis Sparaggis’s Alkeon Capital Management who owns 3.3 million shares worth $238 million.
2. Meta Platforms, Inc. (NASDAQ:FB)
Value of Mr. Moore’s Stake: $46 Million
Percentage of ThornTree Capital’s 13F Portfolio: 6.24%
Number of Hedge Fund Holders: 266
Meta Platforms, Inc. (NASDAQ:FB) is perhaps the world’s most famous social media firm, which is headquartered in the American state of California. Initially starting out as a simple platform that lets its users connect with each other and share their life updates, Meta Platforms, Inc. (NASDAQ:FB) now owns several services and operates its own marketplace in addition to its other venues.
During its third quarter, Meta Platforms, Inc. (NASDAQ:FB) brought in $29 billion in revenue and $3.22 in GAAP EPS, beating analyst estimates for the EPS. Rosenblatt upgraded the company’s shares to Buy and kept the price target unchanged at $400, sharing cautious optimism about capital expenditure in an October 2021 analyst note.
Mr. Moore’s ThornTree Capital held 133,045 Meta Platforms, Inc. (NASDAQ:FB) shares that were worth $46 million and represented 6.24% of his total portfolio value by the end of the second quarter. During the same time period, 266 of the 873 hedge funds polled by Insider Monkey held stakes in the company.
Meta Platforms, Inc. (NASDAQ:FB)’s largest shareholder is Alexander Becker’s Codex Capital who owns 27,950 shares worth $9.6 billion.
In its third quarter investor letter, Wedgewood Partners had the following to say about Meta Platforms, Inc. (NASDAQ:FB):
“Facebook detracted from performance despite posting a staggering +56% growth in advertising revenues. Much of the stock’s underperformance was driven by nonoperating concerns that we view as mostly political in nature. The Company’s digital properties command a massive audience of over 2.7 billion daily users, so any government or state actor would be able to wield tremendous power by controlling that audience and it should not be a surprise when those actors attempt to do that. However, Facebook has invested aggressively in its content curation capabilities that address many of the concerns raised by media and political critics. We continue to carry Facebook at our maximum weighting as the stock is trading in line with a market multiple despite unrivaled competitive positioning and rapid growth, representing one of the best risk-rewards available in the market.”
1. Zillow Group, Inc. (NASDAQ:Z)
Value of Mr. Moore’s Stake: $47.6 Million
Percentage of ThornTree Capital’s 13F Portfolio: 6.43%
Number of Hedge Fund Holders: 76
Zillow Group, Inc. (NASDAQ:Z) is an American company headquartered in Seattle, Washington that provides its customers with the means to conduct transactions and other services in the real estate sector. These include buying, selling, insurance, financing and more.
Mr. Moore held 390,266 shares of Zillow Group, Inc. (NASDAQ:Z) by the end of the second quarter. These were worth $47.6 million and represented 6.43% of his portfolio. During the same time period, 76 out of the 873 hedge funds surveyed by Insider Monkey held a stake in the company.
During its third quarter, Zillow Group, Inc. (NASDAQ:Z) earned $1.74 billion in revenue and -$0.95 in non-GAAP EPS, missing analyst estimates on both counts. The company’s price target was reduced to $95 by Craig Hallum in a November 2021 analyst note which highlighted that while some company initiatives failed miserably, others carry a good chance of performing well.
Zillow Group, Inc. (NASDAQ:Z)’s largest investor is Catherine D. Wood’s ARK Investment Management who owns 10 million shares worth $1.2 billion.
In a third quarter 2021 investor letter, Third Avenue Management had the following to say about Zillow Group, Inc. (NASDAQ:Z):
“In the past, we have railed against the failure of inflation statistics to capture important developments related to housing costs. If that point was debatable then, it certainly is not now. In August, Zillow reported that its Home Value Index3 had risen 17.7% year-over-year. S&P Case Shiller has not yet reported its August home price figures but, in July, the index measured a 19.7% year over year increase, which had been preceded by an 18.7% increase in June and 16.9% in May, each a record at the time. Zillow’s Observed Rent Index rose by 11.5% year over year in August. Meanwhile, the U.S. Bureau of Labor Statistics calculated that “rent of primary residence” rose 2.1% year over year in August while “owners’ equivalent rent of residences” rose by 2.6%. If one were to accept Zillow’s Observed Rent Index data as a reasonably accurate depiction of the pace of rental rate increases—and it is similar to several other independent sources of national home rental data—the incorporation of that data into the CPI weighting system in August would have caused CPI to be measured at something like 8.1% rather than 5.3%.”
Disclosure: None. You can also take a peek at the Top 10 Stock Picks of Anand Desai’s Darsana Capital Partners and Top 10 Stock Picks of Donald Sussman’s Paloma Partners.
