The Rise and Fall of SRS Investment Management, LLC's Q3 and Q4 2022 Holdings

As investors, we constantly seek to improve our investment portfolios by analyzing the shifts in demand and supply in the stock market. SRS Investment Management, LLC, a private investment management firm founded by Karthik Ramakrishnan, is known for its experienced investment team that utilizes fundamental analysis to make long-term investments. In today's blog post, we'll examine SRS Investment Management, LLC's Q3 and Q4 2022 13F holdings comparison, and explore the reasons why some of its holdings fell drastically while others rose impressively.

Introduction:

SRS Investment Management, LLC is a $3.3 billion asset management firm established in 2007. Its portfolio consists of 22 holdings, ranging from the automotive, healthcare, technology, and retail sectors. The firm has a track record of making long-term investments in undervalued companies with growth potential. However, the past quarter saw a rocky ride for some of their investments, while others remained strong.

Main Body:

Let's dive into some of the significant changes in SRS Investment Management, LLC's Q3 and Q4 2022 holdings:

META PLATFORMS INC (META)

One of SRS's largest holdings, META Platforms Inc (META), saw a sharp increase of approximately 46% in Q4 2022, with an additional 2.1 million shares added to SRS's previous 3.25 million holdings. META is the parent company of social media platforms, including Instagram, WhatsApp, and Facebook. The company's share price rose due to strong earnings, revenue growth, and an increase in the number of active users. META's investments in the metaverse and e-commerce segments also contributed to the company's growth.

ZOOMINFO TECHNOLOGIES INC (ZI)

SRS's position in ZoomInfo Technologies Inc (ZI) took a massive hit as its position was reduced from 4.6 million shares in Q3 to 675,356 in Q4, representing an 89.6% decline. ZoomInfo Technologies Inc is a sales and marketing intelligence software company that helps organizations identify potential customers. The company's share price was affected by a steep decline in demand for its services, competition from other market players, and a lack of innovation in the software industry.

PLANET FITNESS INC (PLNT)

SRS's holdings in Planet Fitness Inc remained steady in Q4, with no significant changes in the number of shares. However, the value of the holdings increased by 36.7%. Planet Fitness Inc is a gym chain that offers affordable memberships to its customers, and its stock benefited from the company's strong earnings report, robust revenue growth, and the expansion of the company's services nationally and internationally.

AIRBNB INC (ABNB)

SRS increased its position in Airbnb Inc, one of the leading vacation rental companies globally, in Q4 2022, adding 25,691,340 shares to its Q3 positions representing a 1476% increase. The company's share price rose due to better-than-expected earnings and increasing demand for vacation rentals as countries lifted COVID-19 restrictions. Additionally, Airbnb's efforts in expanding its services by introducing new features such as luxury rentals, travel experiences, hotel bookings, and work-long rentals contributed to the company's growth.

SHOPIFY INC (SHOP)

Shopify.com is a leading e-commerce platform provider that allows businesses to manage their online stores. Despite SRS holding over 10 million Shopify shares in Q3, the firm surprisingly moved to sell all but 4,066 shares, which represents a 100% decrease in holdings. Shopify's share price saw a decline due to the company's focus on international expansion, which weighed down its profit margins, and the company's reports of slowing growth in its monthly recurring revenue.

Conclusion:

SRS Investment Management, LLC's Q3 and Q4 2022 holdings highlights the constant need to monitor the stock market and a willingness to adapt to changes in the macroeconomic environment. SRS's portfolio saw positive shifts in companies such as META, Planet Fitness, and Airbnb Inc, with significant gains in share price and value. Nonetheless, the huge declines in companies like ZoomInfo Technologies and Shopify shows just how unpredictable the stock market is. As an investor, it's essential to always analyze your portfolio and make relevant adjustments to ensure the best returns.