Three Tech Giants Are Losing Ground Today; Which One Hedge Funds Suggest You Should Buy?

With web-based advertising still lagging behind television advertising, Facebook Inc (NASDAQ:FB) has introduced a new product that allows advertisers to buy ads on the social network the same way they buy TV commercials in a bid to close the gap between the two. Although Facebook has managed to generate impressive revenues from ad sales, this time they might have bitten more than they can chew. Investors are not convinced advertising money is ready to switch from TV spots to online ads and believe the company should stick to what they know and do best.

Facebook Inc (NASDAQ:FB) is the third most popular company among the hedge funds we track, which own roughly 3.7% of the company’s common stock as of the end of June. During the second quarter, the number of funds holding the stock has increased to 133 from 129, while the total value of their investments rose by 25% to more than $8.85 billion. Lone Pine Capital is the biggest holder among the funds we follow, as Stephen Mandel increased his investment in the tech giant by 21% to 9.76 million shares. Billionaire Ken Griffin is also very bullish on the stock, having boosted his stake by 176% during the same period of time, with Citadel Investment Group holding 5.06 million shares at the end of the quarter.

Sunedison Inc (NYSE:SUNE) has been investing massively in its core business as well as buying wind companies and solar developers over the last few years and has now become the biggest renewable energy development company in the world. Revenues, however, have not kept pace and worries about the company’s ability to generate profits in the long term have driven the stock lower, losing 78% of its value in the last three months.

Dan Loeb, the manager of Third Point, sees some potential in Sunedison Inc (NYSE:SUNE) and has increased his stake by roughly a quarter, taking it to 12.4 million shares at the end of June. Stephen Mandel, on the other hand, has decided to reduce his exposure to the stock, cutting his investment by 14% to 9.66 million shares. The overall hedge fund sentiment toward Sunedison is mixed as the number of funds holding shares has decreased by one to 93, while the value of their aggregate holdings has increased by 27.7% to $5.67 billion and accounts for 69.1% of the company’s common stock.

Disclosure: none.