In this article, we discuss 3 tech stocks to buy according to billionaire David Tepper. You can see more of Tepper’s favorite tech stocks by clicking 6 Tech Stocks To Buy Today According To Billionaire David Tepper.
3. Meta Platforms, Inc. (NASDAQ:FB)
Appaloosa Management’s Stake Value: $197.9 million
Percentage Of Appaloosa Management’s 13F Portfolio: 7.91%
Number of Hedge Fund Holders: 200
Formerly known as Facebook, Meta Platforms, Inc. (NASDAQ:FB) is an American multinational technology conglomerate company that owns and runs multiple social media platforms. Appaloosa Management held 890,000 shares of the tech giant at the close of the first quarter of 2022, worth roughly $197.9 million, making up 7.91% of the fund’s investment portfolio.
On May 16, Morgan Stanley analyst Brian Nowak maintained an Overweight rating on Meta Platforms, Inc. (NASDAQ:FB) stock with a price target of $330 on its shares. According to the analyst, the combination of a revenue acceleration in the second half and cost discipline leading to significant free cash flow could potentially lead towards free cash flow for the company.
At the end of the first quarter of 2021, 200 hedge funds in the database of Insider Monkey held stakes worth $19.3 billion in Meta Platforms, Inc. (NASDAQ:FB), compared to 224 in the preceding quarter worth $3.18 billion.
Investment firm Vulcan Value Partners mentioned Meta Platforms, Inc. (NASDAQ:FB) in its Q1 2022 investor letter. Here is what they said:
“Meta Platforms Inc., the parent company of Facebook, reported excellent operating results in 2021. Its revenue increased 37%, operating earnings increased 40%, and the company generated $40 billion of free cash flow. Despite these excellent results, Meta experienced extreme volatility in its stock price during the first quarter. We believe that two factors are responsible for this volatility. First, the company quantified the headwind to revenue from Apple’s recent privacy changes in the amount of approximately $10 billion for 2022. Meta is rebuilding its advertising technology, and we believe the long-term headwinds from Apple’s privacy changes will be limited because Meta will create a suitable solution. Second, Meta continues to invest heavily into its Reality Labs segment, also known as the metaverse. While we believe the metaverse presents great opportunity for Meta, we are not assigning any value to it in our valuation work. While 2022 may be challenging for Meta, the company’s competitive advantages are still intact, and the company trades at a significant discount to our estimate of its intrinsic value. Despite our concerns about a possible recession, we expect Meta to return to double-digit bottom line growth next year.”
