Top 3 Stock Picks of Michael Sidhom’s Immersion Capital

1. Facebook, Inc. (NASDAQ:FB)

Immersion Capital’s Stake Value: $340,808,000

Percentage of Immersion Capital’s 13F Portfolio: 32.84%

Number of Hedge Fund Holders: 266

Facebook, Inc. (NASDAQ:FB) ranks first on our list of the top stock picks of Michael Sidhom’s Immersion Capital. The California-based multinational technology corporation operates as a social networking service, with over 2.9 billion active monthly users as of 2021. Facebook, Inc. (NASDAQ:FB) is one of the most valuable global companies, and is recognized as one of the Big Five companies in the US tech sector. Facebook, Inc. (NASDAQ:FB) acquired competing social media platforms, namely Instagram, WhatsApp, and Oculus in 2014. 

Sidhom owns 980,150 shares in Facebook, Inc. (NASDAQ:FB), worth $340.8 million, accounting for 32.84% of Sidhom’s Q2 portfolio. 

The stock is extremely sought-after by the smart money. 266 hedge funds in Insider Monkey’s database were bullish on Facebook, Inc. (NASDAQ:FB) at the end of June, up from 257 in the previous quarter. 

Facebook, Inc. (NASDAQ:FB) reported earnings for the third quarter on October 25. The EPS for Facebook, Inc. (NASDAQ:FB) was $3.22, surpassing estimates by $0.04. The actual revenue for the company was $29.01 billion, missing estimated revenue by -$513.23 million. 

On October 26, Truist analyst Youssef Squali kept a Buy rating on Facebook, Inc. (NASDAQ:FB), but lowered the price target from $425 to $400, after the Q3 results. 

Here is what Polen Capital has to say about Facebook, Inc. (NASDAQ:FB) in its Q3 2021 investor letter:

“Facebook’s stock was pressured on concerns about regulation in the quarter. We are constantly monitoring the potential regulatory risks to Facebook (and all of our holdings). At this point, we see very little chance that regulation changes Facebook’s business model in a meaningful and adverse way. Regarding the recent data shared by a former Facebook employee and the company itself on some of the unfortunate negative consequences of social media, we recognize these types of issues will inevitably linger in different forms and fashions well into the future. We have been focused on the ability of Facebook to identify and mitigate these negative consequences while amplifying the value users typically cite for its apps across a long list of use cases. We continuously monitor the vibrance of the user base on Facebook’s apps to confirm that value.”

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