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Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A)
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Snap Inc. Class A (SNAP)
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Zoom Video Communications Inc. (ZM)
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Uber Technologies Inc. (UBER)
We like the momentum in both UBER and HPS.A. We think HPS.A is still looking cheap, only trading at 14.8x Forward P/E, while growth in the last few years was healthy around double-digits. UBER is expected to turn into profitability in the near term due to less intense competition (most companies stopped subsidizing consumers). ZM is quite cheap, currently trading at 15x Forward P/E, ZM is generating healthy cash flow, and a balance sheet with a net cash of $6.4B compared to the market cap of $22B. Overall, we like the three names here.
On the other hand, SNAP’s competitive position in the social media industry could be questionable, it is hard to predict whether SNAP is still a great business a few years from now, while META and Tiktok continue to capture more market share and SNAP seems to have fairly aggressive stock compensation policies as well which investors have not liked.