Kim Kardashian Stock Portfolio: 8 Stocks to Consider
In this article, we will take a look at the Kim Kardashian Stock Portfolio: 8 Stocks to Consider. To skip our detailed discussion on Kardashian's business career and ventures, click Kim Kardashian Stock Portfolio: 3 Stocks to Consider.
When it comes to launching companies, ventures and brands, Kim Kardashian’s track record is quite impressive. The 42 year-old media star whose first media appearance was as an assistant of Paris Hilton in the early 2000s quickly rose to fame and later dominated the industry. According to several media sources, Kardashian’s total worth as of 2023 stands at over $1 billion. Kardashian’s astute business and marketing skills let her leverage her fame in the media and beauty industry to launch several fashion and beauty brands. Kim Kardashian, who has about 359 million followers on Instagram, harnessed the true power of her social media influence and launched her shapewear, loungewear and underwear brand Skims back in 2019. In 2021 alone the brand produced $275 million in sales. Skims was so successful that even some of the most respected investors in Wall Street paid attention to the company and poured money into it. In 2022 Skims received $240 million in new funding which was led by the famous Tiger Cub investor and billionaire Stephen Mandel. The funding round also included billionaire Daniel Sundheim’s D1 Capital. The fact that some of the notable billionaires decided to invest in Kardashian’s company shows that Kardashian’s business ventures are taken seriously by investors, unlike some ventures started by other celebrities in the past which failed to garner success.
Kardashian's Partnership with HULU
After ending her contract with E! for her all-time famous show Keeping Up With The Kardashians, the Kardashians joined Hulu for their new show The Kardashians. Several media reports suggested that the streaming platform signed a deal worth about $100 million with the Kardashian family.
During the Hulu show the Kardashians aggressively promote their brands and companies, which is reportedly boosting their sales. A Time report from 2022 quoted Krishna Subramanian, co-founder of the influencer marketing firm Captiv8, who said that according to her estimates a 30-second mention of any of the family’s brands in an episode could be valued anywhere from $500,000 to $1.5 million.
Kim Kardashian's Business Ventures
Celebrity-backed funds and investment vehicles don’t have an impressive past. For example, the SPAC boom that started after the pandemic and saw its peak in 2021 caused many celebrities to launch and back different SPACs. But all of that came crashing down as 21 out of 33 SPACs linked to famous public figures posted negative returns in 2021, according to a Bloomberg report. The report cited Matt Tuttle, the chief at Tuttle Capital Management, who thinks that celebrities do a pretty good job at getting the marketing boost but their part begins to fade after companies and funds enter the important phases of business.
“Celebrities are eye candy, unless there’s really good reasoning to have them on board. At some point these companies need to deliver on a real mission, and it becomes less about the marketing and more about the strategy,” Tuttle reportedly said.
Kim Kardashian has had her fair share of losses and setbacks too. Perhaps her relentlessness and consistency gave her an added advantage in the industry in addition to her influence and social media following. For example, Kim, Khloé, and Kourtney started their first clothing brand called Dash during the Keeping Up with the Kardashians days. The brand received a lot of hype and promotion but it was ultimately shuttered in 2018. Kim was also one of the endorsers of Ethereum Max (EMAX), the Ethereum-based token that once generated a lot of hype and endorsements from celebrities. When the token started posting huge losses, an angry investor sued Kim Kardashian, along with other endorsers Floyd Mayweather and Paul Pierce. The investor alleged that the stars colluded with EMAX co-founders Steve Gentile and Giovanni Perone in a pump-and-dump scheme.
Kim Kardashian also launched beauty and fragrance brands KKW Beauty and KKW Fragrance but later shut them down for rebranding. In 2022 the celebrity launched SKKN for Kim, a skincare products brand.
Kim Kardashian Enters Private Equity
Kim Kardashian’s latest and perhaps most impressive foray in the investing world came last year when she announced to form a private equity company in partnership with Jay Sammons, an industry veteran who had worked as a partner at Carlyle Group. The PE firm, SKKY Partners, will make investments in the consumer products, hospitality, luxury, digital commerce and media as well as consumer-media and entertainment businesses.
SKKY Partners has been on a hiring spree lately. Bloomberg in April reported that the firm has hired about six professionals from the finance industry, including a new COO who comes from PE Apollo Global Management Inc. The Bloomberg report quoted Sammons, who said that SKKY Partners now has about 12 employees and the company plans to take this number to 15 by the end of 2023
Over the years Kim Kardashian has also developed a keen interest in law. She also tried several times to pass the Baby Bar exam in California and finally did it last year. Her podcast on Spotify also talks about a case where a person had to spend several years without any evidence against him. Talking to Variety about what sparked her interest in the law industry, Kardashian said:
"When I went to the White House [in 2020] and was able to get someone released from prison, that was the biggest moment for me where I realized I can make a difference. I really had no idea what the system was like, or I just was really ignorant to everything that goes on. Once I learned about it and saw what really happens, I felt like there was so much more that had to be done. We only have so much time on this planet that I just want to do everything as quick as possible. There are a lot of people that can’t fight for themselves and if I can make a difference and fight for them, I would so badly want to. It’s like not really a choice. I just don’t even feel like it’s an option. This is what they need."
By VOGUE Taiwan - At Home With Kim Kardashian - The End of An Era｜Vogue Taiwan, CC BY 3.0, https://commons.wikimedia.org/w/index.php?curid=119951135
Our Methodology
For this article, we picked top companies which Kim Kardashian directly invested in or has indirect partnerships with. Some of these stocks were part of Kardashian's portfolio gifted to her by her then-husband Kanye West, while the other companies in the article had or currently have partnerships with the star or her family. Some top names in this list include Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL) and Netflix, Inc. (NASDAQ:NFLX).
Don't Miss: Kanye West Stock Portfolio vs. Warren Buffett Stock Portfolio
Kim Kardashian Stock Portfolio: 8 Stocks to Consider
8. The Estee Lauder Companies Inc. (NYSE:EL)
While not a direct partner of Kim Kardashian, the New York-based beauty products company The Estee Lauder Companies Inc. (NYSE:EL) in 2016 launched Estee Edit, a beauty products brand, in partnership with Kim’s half-sister Kendall Jenner. The Estee Lauder Companies Inc. (NYSE:EL) took Jenner on board as the company’s promotional star on social media. Estee Edit was launched with high hopes, with some sources claiming that brand was estimated to have sales of $60 million in North America alone in its first year. However, the brand apparently failed as Estee Lauder shuttered it in 2017.
The Estee Lauder Companies Inc. (NYSE:EL) saw a significant jump in hedge fund sentiment earlier this year. As of the end of the first quarter of 2023, 59 hedge funds reported owning stakes in The Estee Lauder Companies Inc. (NYSE:EL), up from 44 hedge funds in the previous quarter. The biggest stakeholder of The Estee Lauder Companies Inc. (NYSE:EL) at the end of March 2023 was Terry Smith’s Fundsmith LLP which owned a $1.3 billion stake in the company.
ClearBridge All Cap Growth Strategy made the following comment about The Estée Lauder Companies Inc. (NYSE:EL) in its Q4 2022 investor letter:
“The Estée Lauder Companies Inc. (NYSE:EL), which manufactures and markets cosmetics, fragrances, skin and hair care products across a number of well-known global brands including Clinique, MAC and Bobbi Brown, adds to our group of secular growers. Estee Lauder is a global leader in the prestige beauty space, which has outgrown the broader home and personal care category since 2010 and has historically been recession resilient. The company has substantial brand and pricing power and is overindexed to the highly profitable prestige skin care category. We believe the company’s most recent earnings report and 2023 guidance update, which was cut significantly due to uncertainty over China’s zero-COVID policy (China and travel retail are key growth drivers), provided an attractive entry point. At this point, we believe the stock has been significantly derisked and could see potential upside from a China recovery.”
7. Coty Inc. (NYSE:COTY)
Kim Kardashian and French-American beauty products company Coty Inc. (NYSE:COTY) have been partnering for several years. Back in 2020, Coty Inc. (NYSE:COTY) announced to acquire a 20% stake in Kim Kardashian’s beauty brand KKW Beauty for $200 million. However, the brand was later shut down as Kim Kardashian partnered again with the company to launch SKKN by Kim brand which included products like cleanser, toner, exfoliator, and several serums and creams. In 2020, In January, Coty Inc. (NYSE:COTY) acquired a 51% stake in Kardashian West’s half-sister Kylie Jenner’s brands.
As of the end of the first quarter of 2023, 21 hedge funds tracked by Insider Monkey had stakes in Coty Inc. (NYSE:COTY). The total value of these stakes was $118 million. The biggest hedge fund stakeholder of Coty Inc. (NYSE:COTY) during this period was Woodline Partners of Michael Rockefeller and Karl Kroeker which owned a $15.25 million stake in the company.
ClearBridge Mid Cap Strategy made the following comment about Coty Inc. (NYSE:COTY) in its Q4 2022 investor letter:
“Coty Inc. (NYSE:COTY), a global beauty company made up of prestige fragrance and cosmetic businesses, also generated positive performance. Despite concerns of slowing consumer demand, the company continues to execute and exceed expectations through margin improvement, resilient Chinese demand and growing market share within mass market cosmetics in the U.S. We view Coty as exceptionally undervalued due to its historically high leverage but believe continued margin improvement and strong execution will improve its balance sheet and attractiveness to fundamentals-focused investors.”
6. Spotify Technology S.A. (NYSE:SPOT)
Back in 2020, Spotify Technology S.A. (NYSE:SPOT) signed a deal with Kim Kardashian for an exclusive podcast. This came just weeks after Spotify Technology S.A. (NYSE:SPOT)’s $100 million deal with Joe Rogan which saw Rogan bringing his podcast exclusively to the streaming platform. However, financial details of Kardashian’s deal with Spotify Technology S.A. (NYSE:SPOT) were not available. “The System” podcast of Kim Kardashian on Spotify Technology S.A. (NYSE:SPOT) focuses on investigative work based on true crime stories.
Spotify Technology S.A. (NYSE:SPOT) shares jumped in April 2023 after the company reported that it added a whopping 5 million premium subscribers in the first quarter. Analysts have expected 2.23 million new additions.
A total of 59 hedge funds tracked by Insider Monkey had stake in Spotify Technology S.A. (NYSE:SPOT) as of the end of the first quarter of 2023. The biggest stakeholder of Spotify Technology S.A. (NYSE:SPOT) was Ken Griffin’s Citadel Investment Group which had a $321 million stake in the company.
Baron Partners Fund made the following comment about Spotify Technology S.A. (NYSE:SPOT) in its Q4 2022 investor letter:
“Spotify Technology S.A. (NYSE:SPOT) is a leading global digital music service offering on-demand audio streaming through paid premium subscriptions and an ad-supported model. Shares of Spotify were down on weakness in the company’s fourth quarter gross margin guide. We still view Spotify as a long-term winner in music streaming with potential to reach more than one billion active monthly users. Subscriber additions remain strong, price increases seem likely, and cost discipline has become a bigger focus.”
5. adidas AG (OTC:ADDYY)
Back in 2017, the then-husband of Kim Kardashian gifted her some stocks as a Christmas present. The gift included about 1,000 shares of adidas AG (OTC:ADDYY). At the time, adidas AG (OTC:ADDYY) was trading at around $98, but as of June 5 the stock price has fallen to about $85.
adidas AG (OTC:ADDYY) recently announced that it will begin selling some of the last remaining items from Kanye West’s YEEZY brand. Adidas cut ties with West last year.
adidas AG (OTC:ADDYY) said that the proceeds generated from the remaining Yeezy product sales will be donated to organizations “working to combat discrimination and hate, including racism and antisemitism.”
4. Amazon.com, Inc. (NASDAQ:AMZN)
Kim Kardashian’s stock portfolio gifted to her by Kanye West back in December 2017 included about 85 shares of Amazon.com, Inc. (NASDAQ:AMZN).
Recently, Bloomberg reported that Amazon.com, Inc. (NASDAQ:AMZN) held talks with Verizon Communications (VZ), T-Mobile US (TMUS) and Dish Network (DISH) to get low-cost or free mobile phone service for its Prime members.
As of the end of the first quarter of 2023, 243 hedge funds tracked by Insider Monkey reported owning stakes in Amazon.com, Inc. (NASDAQ:AMZN). The biggest stakeholder of Amazon.com, Inc. (NASDAQ:AMZN) was Natixis Global Asset Management’s Harris Associates which owns a $2.4 billion stake in the company.
In addition to AMZN, other notable names in this list include Apple Inc. (NASDAQ:AAPL) and Netflix, Inc. (NASDAQ:NFLX).
Click to continue reading and see Kim Kardashian Stock Portfolio: 3 Stocks to Consider.
Suggested articles:
Disclosure: None. Kim Kardashian Stock Portfolio: 8 Stocks to Consider is originally published on Insider Monkey.