Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” first quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, Palm Valley Capital Fund increased 1.04% compared to 2.46% and 5.69% gains for the S&P SmallCap 600 Index and the Morningstar Small Cap Index, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Palm Valley Capital Fund featured stocks like Meta Platforms, Inc. (NASDAQ:META) in its Q1 2024 investor letter. Headquartered in Menlo Park, California, Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. On April 5, 2024, Meta Platforms, Inc. (NASDAQ:META) stock closed at $527.34 per share. One-month return of Meta Platforms, Inc. (NASDAQ:META) was 9.05%, and its shares gained 145.56% of their value over the last 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $1.34 trillion.
Palm Valley Capital Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its first quarter 2024 investor letter:
“While we are not experts on the beanstalk tech stocks, we do have considerable experience observing behavior during bubbles. For the current crop of market leaders, we wonder: how good can it get? Google, Meta Platforms, Inc. (NASDAQ:META), and Amazon’s combined advertising revenue exceeded the total value of the U.S. advertising industry by 2020 and now accounts for nearly 50% of the entire $900 billion global ad market (GroupM estimate). Meta’s top advertiser last year was Temu, a retailer of cheap Chinese goods that is losing money on each U.S. order in an effort to take share from Amazon.
Meanwhile, Microsoft’s powerhouse Office division carried a 49% operating margin last year, Meta’s Facebook and Instagram segment had a 47% margin, and Google’s Search earned a 35% operating margin. In other words, purveyors of financial indexes that are primarily constructed by simple, easy-to-replicate formulas sport profit margins that make those of the most dominant technology franchises on Earth seem prosaic. …” (Click here to read the full text)
Photo by Alexander Shatov on Unsplash
Meta Platforms, Inc. (NASDAQ:META) is in third position on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Meta Platforms, Inc. (NASDAQ:META) was held by 242 hedge fund portfolios, up from 234 in the previous quarter, according to our database.
We discussed Meta Platforms, Inc. (NASDAQ:META) in another article and shared the list of biggest internet companies in the US. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
