4. Meta Platforms, Inc. (NASDAQ:FB)
Tiger Management’s Stake Value: $33,398,000
Percentage of Tiger Management’s 13F Portfolio: 5.5%
Number of Hedge Fund Holders: 200
Meta Platforms, Inc. (NASDAQ:FB) is among the top 5 holdings of Tiger Management as of Q1 2022. The fund’s stakes in the silicon-valley giant were estimated at $33.39 million which accounts for 5.5% of Julian Robertson’s 13F portfolio.
This April Meta Platforms, Inc. (NASDAQ:FB) released its earnings for the fiscal first quarter of 2022. The company reported earnings per share of $2.72 and beat EPS expectations by $0.21. Moreover, the company’s quarterly revenues came in at $27.91 billion, up 6.64% year over year, missing Wall Street consensus by $313.98 million.
On May 18, Guggenheim analyst Michael Morris trimmed his price target on Meta Platforms (NASDAQ:FB) to $250 from $275 but reiterated a Buy rating on the shares. Morris cited lower estimates and normalized EBITDA margins to be short of consensus, to reflect his price cut on the stock.
Meta Platforms, Inc. (NASDAQ:FB) is a popular stock pick among elite institutional investors. Insider Monkey found 200 hedge funds long Meta Platforms, Inc. (NASDAQ:FB) at the close of Q1 2022. The total stakes of these funds amounted to $19.33 billion.
Vulcan Value Partners mentioned Meta Platforms, Inc. (NASDAQ:FB) in its first-quarter 2022 investor letter. Here is what the firm 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.”
