We recently published an article titled 8 stocks of billionaire Nicholas J. Pritzker have huge upward potential. In this article, we will explore the position of Warby Parker Inc. (NYSE:WRBY) against other stock picks with huge advantages in Nicholas J. Pritzker.
Nicholas J., who previously served as chairman and CEO of Hyatt Development Corporation, was associated with the enormous commercial interests of the Pritzker family, including ownership stake in Hyatt Hotels and Conwood, a leading chewing tobacco company. His academic journey included studying at Reed College, Lake Forest College and London School of Economics, before receiving a JD from the University of Chicago.
At Tao Capital Partners, Pritzker is responsible for a company that strategically focuses on technology, transportation, healthcare, education, sustainable food, alternative energy, agriculture, consumer products, real estate, real estate and hotels. Although Nicholas Pritzker serves as chairman, he is not the company's portfolio manager. Instead, the position is held by Matthias Brachtel, who manages the company’s portfolio and makes important financial decisions. Under their leadership, Tao Capital has gained a reputation for supporting innovation and sustainability businesses, highlighting long-term positive impacts as well as financial returns.
Capital partners follow a disciplined investment philosophy that targets sectors that contribute to growth and transformation. The company's investments include companies in the technology and transportation industries, as well as companies focusing on healthcare, education, sustainable food and clean energy solutions. This diversified approach reflects the company’s commitment to realizing financial gains and also promotes progress in key global sectors.
As of the fourth quarter of 2024, Tao Capital Partners reported $143.28 million in $135,000 in securities managed in ten core holdings. The company’s commitment to sustainable and impactful investment is aligned with Nicholas Pritzker’s vision of using capital to drive positive change more broadly. Pritzker's guidance continues to shape the company's strategic direction, while Matthias Brachtel's portfolio management expertise ensures the benefits of optimizing the selected department. Through a combination of innovative vision and practical financial management, Tao Capital Partners continues to build a diverse portfolio designed to promote sustainable growth.
In this article, we searched Tao Capital's Q4 2024 13F file to determine the highest upside potential of billionaire Nicholas J. Pritzker's stock. At the time of writing, we compiled stocks’ upside potential above 2% and analyzed why they are good potential investments. Finally, we rank stocks according to the rising order of their upward potential. To help readers provide more environments, we use data from 1,009 hedge funds tracked in the fourth quarter of 2024 with Insider Monkey refer to hedge fund sentiment around each stock.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our quarterly newsletter strategy selects 14 small and large stocks every quarter, returning 363.5% since May 2014, exceeding 208 percentage points (See more details here).
A woman wearing stylish glasses walking through a shopping mall.
Number of hedge fund holders as of the fourth quarter
Tao Capital Equity: US$3.26 million
As of May 8: 47.17%
Warby Parker Inc. (NYSE:WRBY) is an American glasses brand and retailer based in New York City. Warby Parker, originally launched as an online-only retailer in 2010, has expanded significantly since then, now derives about two-thirds of its revenue from 276 brick-and-mortar retail stores in the U.S. and Canada. The company offers a wide range of glasses products including prescription glasses, contact lenses, sunglasses and ophthalmic examinations.
In 2024, Warby Parker Inc. (NYSE:WRBY) performed well, with full-year net income up $101.6 million (15.2%) to $771.3 million. The growth in net income in the fourth quarter increased by $28.8 million (17.8%) to $190.6 million. This growth was driven by an increase in active customers, which increased by 7.8% to 2.51 million over a 12-month period. In addition, average revenue per customer increased by 6.8% to $307, reflecting effective customer engagement and improvement strategies.
The company's profitability has also improved, with gross margin of 54.1%, up from 53.8% in the previous year. Operational activities generated $98.7 million in net cash, a significant increase from $61 million in 2023. Free cash flow for the full year totaled $34.7 million, highlighting Warby Parker’s enhanced cash generation capabilities. Warby Parker Inc. (NYSE:WRBY) opened 41 new stores in 2024, ending with 276 locations and plans to open 45 stores in 2025, including five stores in certain target locations.
Warby Parker Inc. (NYSE:WRBY) has set its ambitious outlook for 2025, with net revenue expected to be between $878 million and $893 million, up 14% to 16%. Warby Parker Inc. (NYSE:WRBY) has a price target of $23.93 with a 48.08% upside potential and is a stock pick for billionaire Nicholas J. Pritzker with huge upside potential. The company's ongoing store expansion and increasing customer engagement underlines its potential for continued growth.
Polen US SMID's growth strategy pointed out the following about Warby Parker Inc. (NYSE: WRBY) in its fourth-quarter 2024 investor letter:
“ Warby Parker Inc. (NYSE:WRBY) is an omnichannel retailer of glasses products based in the U.S., whose vertically vertically integrates into the consumer business model, reporting encouraging quarterly results. The company's glasses business has experienced strong growth and continues to be in contact lenses and optometry. Investment in optometrists is producing results, increasing gross profit margins through enhanced utilization. Warby Parker appears to have emerged from a challenging time in which pandemic changes in consumer behavior have adversely affected. The steps to reduce costs by company management appear to be paying off. Recently, we have seen some improvement in fundamentals, now that profit margins have reached and marketing spending is recovering. We believe that as demand continues to recover, the company has the potential to improve its profitability and complete and capitalize on large investments in areas such as optometry services and take advantage of the losses of previous rights. ”
Overall WRBY Ranked fourth At billionaire Nicholas J. While we acknowledge that WRBY is a potential for an investment, our belief is that AI stocks have higher returns in a shorter time frame and do this during this period. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than WRBY but have less than 5 times their returns, check out our report Cheapest AI stocks.
Read the next article: 20 Best AI Stocks Buy Now and According to the billionaire, there are now 30 best stocks
Disclosure: None. This article was originally published in Internal monkey.