5 Best Falling Stocks To Buy Now

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1. Meta Platforms, Inc. (NASDAQ:FB)

Number of Hedge Fund Holders: 200

Year-to-Date Share Price Decline (as of August 9): 49.71%

Meta Platforms, Inc. (NASDAQ:FB) has slid almost 50% since the start of 2022, as increasing competition from Tiktok, Apple’s recent privacy law changes, and a cool down of online activity back to pre-pandemic levels has affected the stock. Still, Facebook, Instagram and WhatsApp remain among the most downloaded and used platforms around the world, and with recent strategic investments into the ‘Metaverse’, Meta Platforms, Inc. (NASDAQ:FB) is poised to remain one of the most dominant names in the internet/tech space, offering investors the guarantee of long-term gains.

On July 28, JMP Securities analyst Andrew Boone lowered the firm’s price target on Meta Platforms, Inc. (NASDAQ:FB) to $215 from $240, and maintained an ‘Outperform’ rating on the company shares. The analyst sees Q2 results and guidance reflecting the challenging macro environment which is weighing on advertiser sentiment, but sees META as a “must-buy” stock given nearly 3 billion daily active users on the platform. The company shares are trading at 14x estimated 2023 GAAP earnings, according to Boone, who sees a positive risk/reward for investors at current levels.

For the second quarter, Meta Platforms, Inc. (NASDAQ:FB) posted earnings per share which came in $0.09 below analysts’ predictions. Revenue of $28.82 billion was recorded $129.65 million below estimates, and represented the first year-over-year quarterly revenue drop in the firm’s history, sliding 0.88% from the period last year. Despite the recent hiccups, Q2 revenue showed a significant jump of 70% from the second quarter of 2019.

A total of 200 hedge funds from our Q1 database disclosed ownership of stakes in Meta Platforms, Inc. (NASDAQ:FB) with a combined value of $19.33 billion. This is down from 224 hedge funds with bullish bets a quarter earlier.

Boyar Value Group, an asset management firm, talked about a few stocks in its Q4 2021 investor letter, and Meta Platforms, Inc. (NASDAQ:META) was one of them. Here is what the fund said:

“Corporate executives can have many different reasons for selling shares (anticipation of tax law changes, philanthropy, diversification, and much more), but the sheer number of billionaire founders who sold shares in 2021 should raise eyebrows and might well be signaling a market top. Bloomberg’s Ben Steverman and Scott Carpenter report not only that Mark Zuckerberg of Meta Platforms, Inc. (NASDAQ:META) (formerly known as Facebook) sold shares in his company almost every day last year but also that the founders of Google sold ~$3.5 billion worth of stock (the first time either Sergey Brin or Larry Page has sold shares since 2017).”

You can also take a look at 15 Best Semiconductor Stocks to Buy Now and 10 Best Dividend Stocks for Passive Income.

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