2. Snap Inc. (NYSE:SNAP)
Dorsal Capital Management’s Stake Value: $190,215,000
Percentage of Dorsal Capital Management’s 13F Portfolio: 9.29%
Snap Inc. (NYSE:SNAP) is a camera and social media company founded in 2011 by Evan Spiegel and Bobby Murphy. Based out of Santa Monica, California, Snap Inc. (NYSE:SNAP) has products and services like Snapchat, Spectacles, and Bitmoji under its wings. Snap has been a part of Dorsal Capital Management’s portfolio since Q1 2020. According to Insider Monkey’s database comprising 867 hedge funds, 78 of them have a stake in Snap Inc. (NYSE:SNAP) with a combined value of $6.74 billion as of Q3 2021. The number of hedge funds having a stake in Snap Inc. has increased by 14 on a sequential basis.
On December 10, Thomas Champion at Piper Sandler gave the stock an Overweight rating with a $72 price target. The analyst pointed out the headwinds in the form of Apple’s Identifier for Advertisers reducing the revenue growth projections of Snap Inc. from 50% YoY to 30% YoY in the next few quarters. Although Snap Inc. (NYSE:SNAP) is facing challenges related to targeting and measurement, the issues are being seen as temporary in nature. The analyst has highlighted the “long track of superior revenue growth” as a positive and sees its valuation as attractive to go long as the company returns to post-pandemic normalization.
Jefferies Group shared its stance on Snap Inc. (NYSE:SNAP) in its Q3 2021 investor letter. Here’s what the investment management firm had to say about the company:
“We believe SNAP may be one of the best positioned virtual platforms in the development of the Metaverse. In order to better understand SNAP’s leadership position, we examine the significance of four key product areas; 1) the camera and augmented reality, 2) virtual avatars, 3) the Snap Map, and 4) hardware.
Camera and Augmented Reality: SNAP distinguishes itself from its peers by building products that leverage camera and AR technology as the principal drivers of engagement and user generated content. Currently, SNAP has 290M+ DAUs who create on average 5B snaps per day, open the app on average 30 times per day, and regularly use AR lenses to communicate with friends and brands (200M+ DAUs using AR). As we mentioned in the “Virtual Platforms” section of this report, the Metaverse is enabled by platforms that provide the “picks and shovels for content creation, the ongoing maintenance of live experiences, user interface, and social interactions”. We believe SNAP is beginning to successfully democratize its AR tool sets through its recently launched Lens Studio and Camera Kit. We highlight that the Lens Studio enables a community of 200K+ creators to build their own AR experiences using their own machine learning models. The Camera Kit makes the tools from the Lens Studio interoperable with partner apps like Zoom, the MLB, and Disney. In our view, SNAP is one of few platforms making AR technology easily accessible both inside and outside its App, which should support the company’s AR leadership for years to come…” (Click here to see the full text)
