Could meta-platforms (META) offer attractive returns?
Rowan Street Capital, an investment management firm, recently released its August update. A copy of it can be downloaded here. Since the end of the second quarter, the fund has gained 30%. Additionally, you can check out the fund’s top 5 holdings for its top picks in 2022.
Rowan Street Capital discussed stocks like Meta Platforms, Inc. (NASDAQ:META) in the August update letter. Meta Platforms, Inc. (NASDAQ: META) is a technology conglomerate headquartered in Menlo Park, California. On October 10, 2022, Meta Platforms, Inc. (NASDAQ:META) stock closed at $133.79 per share. The one-month return of Meta Platforms, Inc. (NASDAQ:META) was -12.63% and its shares have lost 58.68% of their value over the past 52 weeks. Meta Platforms, Inc. (NASDAQ: META) has a market capitalization of $359.567 billion.
Here’s what Rowan Street Capital specifically said about Meta Platforms, Inc. (NASDAQ:META) in its August letter to investors:
“Meta Platforms, Inc. (NASDAQ:META) has been the subject of a lot of negative media coverage, and general negative sentiment has been floating around the company for some time. But let’s look at what’s “under the hood”. In the last quarter, daily active people in Family of Apps reached 2.88 billion, while monthly active people grew to 3.65 billion – these are staggering numbers. In the last 12 months, they earned $33.20 in revenue per user, which is $118 billion in total revenue. Of that, they generated nearly $40 billion in operating profit (34% operating margin) and $58.5 billion in operating cash flow. It’s far from a disaster! In the last quarter, investors are concerned that total revenue fell 1% (Y/Y) and is expected to fall 6% (Y/Y) in the third quarter, reflecting weak advertising demand. At the same time, Meta continues to reinvest in its business, with total expenses increasing 22% (Y/Y) in the second quarter, resulting in a 32% drop in operating profit and earnings per share (EPS). ). Meta is in the midst of an economic cycle that is having a broad impact on the digital advertising industry. They are disciplined on spending while continuing to invest in areas that will position themselves to drive growth as the economic environment improves. The investments they are making in Reels, the discovery engine, business messaging, revamping their advertising system, building cutting-edge AI technology infrastructure, and most importantly contributing to building the metaverse, represent enormous opportunities for their company and their partners. Meta is a company that has shown extraordinary resilience over time. Zuck & Co. have demonstrated time and time again that they are prepared to act quickly and at scale to respond to changes in consumer behavior, the macroeconomic landscape and the needs of their advertising partners. »
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Meta Platforms, Inc. (NASDAQ:META) is #4 on our list of 30 most popular stocks among hedge funds. According to our database, 184 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the second quarter, up from 200 in the prior quarter.
We discussed Meta Platforms, Inc. (NASDAQ:META) in another article and shared the best fundamental stocks to buy. Additionally, please see our Letters to Hedge Fund Investors Q3 2022 page for more letters from hedge fund investors and other leading investors.
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