Meta Platforms (META) Contributed Significantly to Argosy Investors’ Underperformance

Argosy Investors, an investment management company, recently released its second-quarter 2022 investor letter. A copy of the same can be downloaded here. Year to date, the fund returned -25.4% in select accounts compared to -20% for the S&P 500. The main reason for the fund’s underperformance was the poor performance of its most significant holdings. For more information on the fund’s top picks in 2022, please check its top five holdings.

Argosy Investors discussed stocks like Meta Platforms, Inc. (NASDAQ:META). Meta Platforms, Inc. (NASDAQ:META) is a technology conglomerate headquartered in Menlo Park, California. The stock of Meta Platforms, Inc. (NASDAQ:META) closed at $174.66 per share on August 18, 2022. One-month return of Meta Platforms, Inc. (NASDAQ:META) was 3.18% and its shares lost 51.40% of their value over the last 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $469.407 billion.

Here is what Argosy Investors specifically said about Meta Platforms, Inc. (NASDAQ:META):

“Meta Platforms, Inc. (NASDAQ:META) is a great business that investors believe could be threatened by TikTok, saw Apple roll out an ad privacy measure that made users harder to track, and faces advertising headwinds as a result of a weakening economy and the belief that venture-backed start-ups were pumping money into Google and Facebook to show growth. Now that venture capitalists are pulling back as a result of the significant market declines among software and other venture-backed industries like Buy Now Pay Later, online gambling, and cryptocurrencies, companies are being forced to focus on profitability to survive. What this could mean for Meta is companies could spend a lot less with them (and other forms of advertising) for a period of time (how long is the other big question). Are we in a dot-com bubble bursting phase that will take years to play out, or has most of the carnage already happened and we will soon see more venture capital dollars put to work? It’s hard to say, but at a 9x EV/EBITDA multiple and 16x 2023 earnings, some relatively severe outcomes are already built in.”

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Meta Platforms, Inc. (NASDAQ:META) is in 4^th position on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, Meta Platforms, Inc. (NASDAQ:META) was held by 184 hedge fund portfolios at the end of the first quarter, which was 200 in the previous quarter.

We discussed Meta Platforms, Inc. (NASDAQ:META) in another article and shared the list of undervalued high free cash flow stocks to buy amid a recession. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.