Were Hedge Funds Right Betting On These Stocks in Q4?

#4 Facebook Inc (NASDAQ:FB)

-Hedge Funds with Long Positions (as of September 30): 128

-Aggregate Value of Hedge Funds’ Holdings (as of September 30): $8.95 billion

Facebook Inc (NASDAQ:FB)’s stock continued its bull run in the fourth quarter of 2015, ending the quarter up by 16.42%. Though the stock has suffered some decline since the start of 2016 and has gone below the $100 mark, it is still trading above the highs that it made during the third quarter of 2015. This means that the bet made by all the funds that were long on the stock at the end of the third quarter has paid off quite well, especially when one takes into account the performance of the broader market.

According to Piper Jaffray’s analyst Gene Munster, 2016 will be the year of virtual reality and Facebook Inc (NASDAQ:FB) with its VR platform ‘Oculus Rift’ will emerge as a dominant player in this industry. However, Munster also warns investors not to expect any miracle in terms of revenue or profit from Facebook’s virtual reality division anytime soon as people are still adapting to this new technology. Munster currently has a ‘Buy’ rating with a $155 price target on Facebook’s stock.

Facebook is expected to report its fiscal 2015 fourth quarter results by the end of this month. Analysts estimate that the company will report EPS of $0.68 on revenue of $5.36 billion for the quarter, significantly better than the EPS of $0.54 on revenue of $3.85 it had reported for the same quarter last year. Stanley Druckenmiller‘s Duquesne Capital more than doubled its stake in the company to slightly over 4 million shares during the third quarter.