5 Biggest Losers Today

Page 5 of 5

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

Number of Hedge Fund Holders: 184

Shares of Meta Platforms, Inc. (NASDAQ:META) slightly moved down in mid-day trading Tuesday apparently after the U.K.’s competition watchdog ordered the company to sell animated search platform Giphy.

The Competition and Markets Authority (CMA) owning Giphy could allow Meta Platforms, Inc. (NASDAQ:META) to restrict the access of smaller social media sites to GIFs, making them less competitive.

Separately, Meta Platforms, Inc. (NASDAQ:META) appeared in the third-quarter 2022 investor letter of investment management firm Wedgewood Partners. Here’s what the firm said:

Meta Platforms, Inc. (NASDAQ:META) detracted from performance during the quarter. Meta’s advertising revenue grew +3% (currency-adjusted) over 2021 and is up +70% since 2019 (pre-pandemic). The shift of advertisers and consumers to social media has been fairly dramatic and sticky. The Company reported $2.88 billion “daily active people” of its Family of Apps (as of June 2022) and is +35% higher than the comparable month pre-COVID (June 2019). Meta also serves over 10 million advertisers which is up from 8 million in January 2020. In spite of these impressive gains, the stock now trades at absolute levels well below where it traded before the pandemic. We suspect much of the market’s concern revolves around slowing revenue growth. It is fairly evident that there was a tremendous pull-forward of demand for many businesses and services over the past couple of years, and that the normalization of revenue growth from that “pull-forward” is hardly an existential crisis. Further, while Meta’s profit margins have fallen below pre-pandemic levels, it’s important to note that the Company likely hired well in excess of what it needed because it assumed the pandemic induced growth would continue. Meta has plenty of room to moderate its expense base and drive significant value by repurchasing shares at today’s historically depressed multiples.”

You can also take a peek at Best Asian Stocks To Buy and 13 Best Cybersecurity Stocks To Buy.

Page 5 of 5