3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Appaloosa Management LP’s Stake Value: $161,250,000
Percentage of Appaloosa Management LP’s 13F Portfolio: 10.12%
Menlo Park, California-based Meta Platforms, Inc. (NASDAQ:META) is a technology conglomerate focused on building products and services that help people connect and communicate. Formerly known as Facebook, Inc., the tech conglomerate reports its business under two segments: Family of Apps – comprising social media web and smartphone apps Facebook, Instagram, Messenger, and WhatsApp; and Reality Labs – comprising augmented and virtual reality products including hardware, software, and content.
Meta Platforms, Inc. (NASDAQ:META) mainly generates revenue through advertising services on its platforms which boast a combined total of 3.65 billion monthly active users as of June 30, 2022.
Meta Platforms, Inc. (NASDAQ:META) is ranked #2 on the list of David Tepper’s Appaloosa Management LP’s holdings based on its portfolio weight of 10.12% as of Q2 2022. The hedge fund holds 100,000 shares of Meta Platforms, Inc. (NASDAQ:META), 13% more than the number of shares held at the end of the previous quarter.
In July, Meta Platforms, Inc. (NASDAQ:META) released the financial results for Q2 2022. Its total revenue declined by 1% y-o-y to $28.8 billion, while its net income declined by 36% y-o-y to $6.7 billion, for three months ended June 30, 2022. It reported a normalized EPS of $2.46 for the quarter, missing the consensus by $0.09.
In August, Morgan Stanley analyst reduced the price target on Meta Platforms, Inc. (NASDAQ:META) shares from $280 to $225, while Loop Capital lowered the price target from $180 to $165.
Meta Platforms, Inc. (NASDAQ:META) is among hedge funds’ favorites as 184 of the 895 hedge funds tracked by Insider Monkey hold its shares valued at a combined total of $18.2 billion. The social media company ranks #3 on the list of 10 stocks to buy now according to billionaire David Tepper based on the number of hedge funds invested in the stock.
Here is what Alger Capital specifically said about Meta Platforms, Inc. (NASDAQ:META):
“Meta Platforms, Inc. (NASDAQ:META) operates Facebook, the world’s largest social network. The digital advertising industry is taking market share of advertising dollars from print, radio, and tv media. However, concerns about brand risk, or having advertisements appear alongside of controversial content, caused brands and agencies to move budgets away from meta, resulting in disappointing revenue. Diminished ad tracking capability relative to consumer opt-out also weighed upon sentiment for meta shares. Meta’s share performance responded favorably, however, to first quarter results that that while not strong fundamentally, were positive against extremely low expectations among some investors. The positive contribution to portfolio performance was due to a sequential quarterly increase in customer utilization and management lowering its expense guidance $3 billion in order to protect earnings. In a market environment that is rewarding companies with relatively high current earnings, we believe Meta’s spending discipline resonated with investors.”
