In this article, we will discuss top 5 stock picks of Ryan Frick’s Dorsal Capital. If you want to read our detailed analysis of Frick’s history, investment philosophy, and hedge fund performance, go directly to Top 10 Stock Picks of Ryan Frick’s Dorsal Capital: Facebook, Snap and More.
5. Snap Inc. (NYSE:SNAP)
Frick’s Stake Value: $175,461,000
Percentage of Ryan Frick’s 13F Portfolio: 8.19%
Number of Hedge Fund Holders: 64
Snap Inc. (NYSE:SNAP) is an American camera and social media company. It was incorporated in 2010 and is ranked fifth on the list of top 10 stock picks of Ryan Frick’s Dorsal Capital. Snap Inc. (NYSE:SNAP) shares have offered investors more than 192.32% in returns over the past 12 months.
On September 13, Goldman Sachs analyst Eric Sheridan initiated coverage of Snap Inc. (NYSE:SNAP) with a “Buy” rating and gave a price target of $90. On July 22, Snap Inc. (NYSE:SNAP) posted earnings for the second quarter of 2021. It reported earnings per share of $0.10, beating the market predictions by $0.11. In addition, the revenue over the period was $982 million, surpassing the estimates by 135.43 million.
The hedge fund managed by Ryan Frick owns 2.58 million shares in Snap Inc. (NYSE:SNAP) worth over $175.46 million, representing 8.19% of their portfolio. As of the second quarter of 2021, 64 hedge funds held stakes in Snap Inc. (NYSE:SNAP) compared to 73 funds in the first quarter.
RiverPark Funds, in its second-quarter 2021 investor letter, mentioned Snap Inc. (NYSE:SNAP). Here is what the fund said:
“Snap shares were a top contributor for the quarter as well, also driven by strong first quarter results. The company reported accelerating revenue growth of 66% for the period (up from 62% fourth quarter growth), driven by user growth of 22%, and a 36% expansion in average revenue per user (ARPU). The company also guided to stronger-than-expected and accelerating 81%-85% revenue growth for second quarter 2021. Adjusted EBITDA improved by $79 million year over year for a break-even margin, up 1,800 basis points, and free cash flow improved dramatically, turning positive for the period to $126 million. Snap also continued to roll-out products that should help drive further expansion in user growth and ARPU, including Spotlight, a TikTok-like experience, with more than 125 million Snapchatters using it during March, and original programming starring Ryan Reynolds.
With TTM of $2.8 billion in revenue and an ARPU that is about 1/2 that of Twitter and 1/3 that of Facebook, we believe Snap has a long runway for both revenue growth and expanded profitability as it improves its platform functionality, grows its audience, and continues to advance its monetization.”
4. Alphabet Inc. (NASDAQ:GOOG)
Frick’s Stake Value: $180,692,000
Percentage of Ryan Frick’s 13F Portfolio: 8.43%
Number of Hedge Fund Holders: 190
Alphabet Inc. (NASDAQ:GOOG) provides online advertising services. It was founded in 1998 and is placed fourth on the list of top 10 stock picks of Ryan Frick’s Dorsal Capital. Shares of Alphabet Inc. (NASDAQ:GOOG) surged 86.51% in the past 12 months.
On September 1, C3.ai, Inc. (NYSE:AI) announced a collaboration with Alphabet Inc. (NASDAQ:GOOG). C3 AI’s enterprise artificial intelligence solutions running on Google Cloud will be co-sold by both firms’ sales teams as part of the new relationship.
Ryan Frick’s Dorsal Capital increased its holding in Alphabet Inc. (NASDAQ:GOOG) by 3% in the second quarter of 2021, ending the period with 74,000 shares of the company, worth $180.69 million. The company is getting the attention of the smart money, as 190 hedge funds tracked by Insider Monkey reported owning stakes in Alphabet Inc. (NASDAQ:GOOG) in the second quarter of 2021, up from 185 funds a quarter earlier.
Qualivian Investment Partners, in its second-quarter 2021 investor letter mentioned Alphabet Inc. (NASDAQ:GOOG). Here is what the fund said:
“The opportunity in online advertising remains very attractive for Alphabet’s subsidiary Google. In the recent June quarter, Google’s ad sales grew 69%. Alphabet’s subsidiary YouTube’s ad revenue soared 84%, to $7 billion, in the second quarter, putting the business on par with Netflix, which reported quarterly revenue of $7.3 billion. Netflix is expected to grow sales by 19%, to $29.7 billion this year, while YouTube’s ad revenue is forecast to rise 45%, to $28.7 billion.
Alphabet slashed operating losses for the Google Cloud by more than half, as the business continues to scale, growing at 50%+ clips. Furthermore, the company continues to have potentially new growth options via its investments in autonomous driving (Waymo) and various healthcare businesses such as Verily and Calico.”
3. Microsoft Corporation (NASDAQ:MSFT)
Frick’s Stake Value: $189,630,000
Percentage of Ryan Frick’s 13F Portfolio: 8.85%
Number of Hedge Fund Holders: 238
Microsoft Corporation (NASDAQ:MSFT) is a global technology company that makes computer software, consumer devices, computers, and associated services. It was incorporated in 2009 and is ranked third on the list of top 10 stock picks of Ryan Frick’s Dorsal Capital. Microsoft Corporation (NASDAQ:MSFT) shares have offered investors more than 44.02% in returns over the course of the past 12 months.
On September 14, Morgan Stanley analyst Keith Weiss raised the price target on Microsoft Corporation (NASDAQ:MSFT) to $331 from $305 and kept an “Overweight” rating on the shares.
Dorsal Capital holds 700,000 shares in Microsoft Corporation (NASDAQ:MSFT), worth over $189.63 million, representing 8.85% of their portfolio. The hedge fund has decreased its stake in the firm by 25% in the second quarter of 2021. Martin Taylor’s Crake Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT), with 404,700 shares worth $109.63 billion.
Baron Opportunity Fund, in its second-quarter 2021 Investor Letter, the fund highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) is one of them. Here is what the fund said:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft was a top contributor in the period because it trades at reasonable free cash flow and earnings valuations, has cloud and digital transformation tailwinds at its back, reported a solid March quarter, and beat Street expectations by a wide margin. Microsoft’s results continued to be strong across the board, with Azure cloud computing revenues up 46% in constantcurrency (“cc”) terms and commercial cloud bookings growth of 38% cc, the best in years. Microsoft also reported robust profitability growth, with operating income expanding 31% and GAAP earnings up 45%. We believe the company is well positioned for continued solid growth and profitability through market share gains as more companies look to transform and digitize their businesses as they move operations to the cloud.”
2. Facebook, Inc. (NASDAQ:FB)
Frick’s Stake Value: $257,305,000
Percentage of Ryan Frick’s 13F Portfolio: 12.01%
Number of Hedge Fund Holders: 266
Facebook, Inc. (NASDAQ:FB) is a tech company based in the United States. It was founded in 2004, and it stands second on the list of top 10 stock picks of Ryan Frick’s Dorsal Capital. Shares of Facebook, Inc. (NASDAQ:FB) surged 38.66% in the past 12 months.
On September 9, Facebook, Inc. (NASDAQ:FB) joined the big-tech party by creating in-house semiconductors to manufacture more powerful and energy-efficient processors that will be cheaper and give more long-term savings for firms that run power-hungry data centres.
Dorsal Capital holds 740,000 shares in Facebook, Inc. (NASDAQ:FB), worth $257.31 million. This represents 12.01% of their portfolio. The hedge fund increased its stake in the firm by 48% in the second quarter of 2021. The company saw an increase in hedge fund sentiment recently. The number of hedge fund positions climbed to 266 in the second quarter of 2021, compared to 257 positions in the previous quarter.
Polen Capital, in its second-quarter 2021 investor mentioned Facebook, Inc. (NASDAQ:FB). Here is what the fund said:
“Facebook was the top contributor to our return for the second consecutive quarter. The company has over $1 trillion market capitalizations. Yet, based on first quarter 2021 results, FB is currently still growing revenue at over 30% organically! In fact, last quarter Facebook grew revenue 48% year over year. Facebook has generated earnings and intrinsic value growth for many years, driven largely by the mostly free services the company provide to people who can easily choose to stop using them and spend their time elsewhere.
That said, we are regularly asked about the perceived high regulatory risk around Facebook. We examine risks to businesses and, in particular, regulatory risks through a lens of risk exposure versus actual risk. For instance, the antitrust complaints globally against Facebook based on their size, influence, and strong competitive positioning, definitionally exposes these companies to more regulatory risk than much smaller businesses. However, we do not believe risk exposure is the same as actual risk…” (Click here to see the full text)
1. Liberty Broadband Corporation (NASDAQ:LBRDA)
Frick’s Stake Value: $303,905,000
Percentage of Ryan Frick’s 13F Portfolio: 14.19%
Number of Hedge Fund Holders: 28
Liberty Broadband Corporation (NASDAQ:LBRDA) owns communications companies that include cable, internet, wireless, video, phone, and managed services. It was established in 2014 and is ranked first on the list of top 10 stock picks of Ryan Frick’s Dorsal Capital. Liberty Broadband Corporation (NASDAQ:LBRDA) currently has a $33.44 billion market capitalization and was able to deliver a 22.90% return in the past 12 months.
On August 24, Pivotal Research rated the stock as “Street-High,” raising the price target to $1,000 from $820. On August 6, Liberty Broadband Corporation (NASDAQ:LBRDA) posted earnings for the second quarter of 2021. It reported earnings per share of $0.30, missing the estimates by $1.33.
Ryan Frick’s hedge fund owns 1.75 million shares of Liberty Broadband Corporation (NASDAQ:LBRDA), worth $303.91 million. There were 28 hedge funds in our database that held stakes in Liberty Broadband Corporation (NASDAQ:LBRDA) in the second quarter of 2021, compared to 23 funds in the first quarter.
In its second-quarter 2021 investor letter, Alphyn Capital Management mentioned Liberty Broadband Corporation (NASDAQ:LBRDA). Here is what the fund said:
“Liberty Broadband completed its merger with GCI, thereby collapsing one layer of the double discount to Charter Communications, presenting a good opportunity to trim that position as well.”
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