Why Snap (SNAP) is Getting Ready to Challenge Facebook and Twitter?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="RiverPark Advisors an independently-owned investment firm, recently published its first-quarter RiverPark Long/Short Opportunity Fund commentary. During the first quarter of 2020, the RiverPark Long/Short Opportunity Fund returned 9.48% (institutional shares), compared to the total return of -19.60% by the S&amp;P 500 Index. You should check out RiverPark’s top 5 stock picks which helped them beat the market by nearly 30 percentage points. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.” data-reactid=”12″>RiverPark Advisors an independently-owned investment firm, recently published its first-quarter RiverPark Long/Short Opportunity Fund commentary. During the first quarter of 2020, the RiverPark Long/Short Opportunity Fund returned 9.48% (institutional shares), compared to the total return of -19.60% by the S&P 500 Index. You should check out RiverPark’s top 5 stock picks which helped them beat the market by nearly 30 percentage points. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In the said letter, RiverPark Advisors highlighted a few stocks and Snap Inc (NYSE:SNAP) is one of them. Snap is a social media company. Year-to-date, SNAP stock gained 11.2% and on May 7th it had a closing price of $18.15. Its market cap is of $26.3 billion. Here is what RiverPark Advisors said:” data-reactid=”13″>In the said letter, RiverPark Advisors highlighted a few stocks and Snap Inc (NYSE:SNAP) is one of them. Snap is a social media company. Year-to-date, SNAP stock gained 11.2% and on May 7th it had a closing price of $18.15. Its market cap is of $26.3 billion. Here is what RiverPark Advisors said:

“Snap is known for its mobile-only picture and messaging application Snapchat. Snapchat reaches 90% of 13-24-year-olds in the US and has 218 million Daily Active Users who spend about 30 minutes/day on the platform producing more than 10 billion daily video views.

We expect SNAPs average revenue per user (ARPU) to grow from its current $8 per year to more than $20 by 2023. For reference, Facebook generates a $50 ARPU and Twitter $25. Increasing users, engagement and ARPU should drive a 35% revenue CAGR through 2023, as well as expand gross margins from 56% for 4Q19 to 80%. We believe that the combination of continued strong growth in user engagement with increasing monetization will lead to a period of sustained and highly profitable growth for the company over the next several years.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="As you can see RiverPark believes SNAP has the potential to be the next Facebook Inc (NASDAQ:FB) and Twitter Inc. (NYSE:TWTR) by increased user engagement. In Q4 2019, the number of bullish hedge fund positions on SNAP stock increased by about 22% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with SNAP’s huge upside potential.” data-reactid=”16″>As you can see RiverPark believes SNAP has the potential to be the next Facebook Inc (NASDAQ:FB) and Twitter Inc. (NYSE:TWTR) by increased user engagement. In Q4 2019, the number of bullish hedge fund positions on SNAP stock increased by about 22% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with SNAP’s huge upside potential.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Disclosure: None. This article is originally published at Insider Monkey.” data-reactid=”17″>Disclosure: None. This article is originally published at Insider Monkey.