5 Best Stocks to Buy Today According to Value Investor David Abrams

3. Meta Platforms, Inc. (NASDAQ:FB)

Abrams Capital’s Stake Value: $408 million

Percentage of Abrams Capital’s 13F Portfolio: 8.9%

Number of Hedge Fund Holders: 248

Meta Platforms, Inc. (NASDAQ:FB) is the holding company for Facebook, WhatsApp, and Instagram. Facebook is the world’s largest social network, which has made its founder Mr. Mark Zuckerberg into the youngest billionaire in history.

For its fiscal Q3, Meta Platforms, Inc. (NASDAQ:FB) raked in $29 billion in revenue and $3.22 in GAAP EPS, beating estimates only for EPS. Its price target was increased to $425 from $416 in December 2021 by UBS, who shared optimism for growth in spending budgets for Facebook’s corporate customers. These budgets had crashed in the wake of the ongoing pandemic.

Abrams Capital owned 1.2 million Meta Platforms, Inc. (NASDAQ:FB) shares during the third quarter of last year. These were worth $408 million and made up for 8.9% of its portfolio. During the same time period, 248 of the 867 hedge funds polled by Insider Monkey held stakes in the company.

Ken Fisher’s Fisher Asset Management is Meta Platforms, Inc. (NASDAQ:FB) largest investor according to Insider Monkey’s research. It owns 7.5 million shares worth $2.5 billion.

Jefferies Group mentioned Meta Platforms, Inc. (NASDAQ:FB) in its Q3 2021 investor letter. It stated that:

“While still early, FB is in the process of building the platforms that will ultimately support the development of the Metaverse. We look at FB’s position through the lens of 4 current investment initiatives: 1) Oculus VR hardware, 2) Smart glasses, 3) Augmented Reality lenses, and 4) “Horizon Workrooms”

Oculus Virtual Reality hardware: Since acquiring Oculus in 2014 ($2B deal), FB has been focused on developing best-in-class hardware and complementary software & services to support VR experiences. The Oculus Quest 2 is FB’s newest VR headset; it retails at $299 and allows users to play games, try fitness classes, play sports, and watch concerts in virtual environments. Most importantly, Quest 2 is linked to users’ Facebook accounts, which means users can seamlessly connect with friends in virtual environments to play games or spend time together. We believe one of FB’s biggest differentiators in VR is its large array of non-gaming experiences that were designed for Oculus. For instance, users can explore extreme terrain in National Geographic Explore VR, join virtual fitness classes, or simulate being a chef. As FB’s hardware continues to improve and becomes less cumbersome, we would expect a flywheel of greater developer and user adoption of VR…”