2. Meta Platforms, Inc. (NASDAQ:META)
Percentage of Stake Sold: 100%
Number of Hedge Fund Holders: 194
Meta Platforms, Inc. (NASDAQ:META) has been part of Seth Klarman’s portfolio since the first quarter of 2020. In Q4 2022, the legendary value investor held 1.72 million shares of Meta Platforms, Inc. (NASDAQ:META) worth nearly $208 million, representing 3.39% of the total 13F portfolio. In Q1 2023, Klarman dumped his position in the company completely.
On May 19, Roth MKM maintained a Buy rating and set a price target of $255 for Meta Platforms, Inc. (NASDAQ:META) following their participation in the company’s AI Infra@Scale conference. According to the firm’s research note, Meta Platforms, Inc. (NASDAQ:META) showcased a specialized data center infrastructure that is specifically designed for AI applications. This infrastructure has the potential to offer improved cost-effectiveness, resulting in greater capital expenditure leverage. Roth MKM believes that while the CapEx related to infrastructure may continue to increase due to general trends in real estate investment, Meta Platforms, Inc. (NASDAQ:META)’s overall CapEx likely reached its peak in 2022 and is expected to decline year-over-year in 2023 and 2024.
According to Insider Monkey’s fourth quarter database, 194 hedge funds were bullish on Meta Platforms, Inc. (NASDAQ:META), compared to 177 funds in the prior quarter. Boykin Curry’s Eagle Capital Management is a prominent stakeholder of the company, with a position worth over $1 billion.
Baron Opportunity Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q1 2023 investor letter:
“We continued rebuilding our position of Meta Platforms, Inc. (NASDAQ:META), the world’s largest social network, this quarter. We believe Meta is competitively well positioned to utilize its leadership in mobile advertising and expand further with the generative AI shift, especially given its massive user base, substantial technological scale, and innovative culture. Core engagement has been strong at Meta, especially with the success of Instagram Reels, which is regaining share from TikTok. Across its platforms, Meta has 3.7 billion monthly active users. A U.S. TikTok ban would further materially benefit Meta. In terms of improving monetization, Meta has developed more effective ad targeting in the last few months with its Advantage+ product. Longer term, Meta has invested in generative AI for years and has among the world’s best and largest datasets and distribution. We believe generative AI can materially help Meta improve existing products (e.g., instantly generate personalized creative ads) and expand into new areas (e.g., through WhatsApp and Messenger chats). On the profitability front, Meta’s management is serious about cost discipline (laying off approximately 21,000 workers) and prioritizing a more efficient environment, led in earnest by CEO Mark Zuckerberg. Valuation remains relatively attractive, especially as we expect double-digit earnings per share growth, and additional growth options remain.”
