5 Most Undervalued Value Stocks To Buy According To Hedge Funds

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

Number of Hedge Fund Holders: 177

Meta Platforms, Inc. (NASDAQ:META) shares shot up about 4% on January 26 after a Wall Street Journal report said Meta Platforms, Inc. (NASDAQ:META) will pay BuzzFeed millions of dollars to generate content for Facebook platform. Meta Platforms, Inc. (NASDAQ:META) is investing heavily to reinvigorate growth on its platform as it faces several challenges such as slowing growth of Instagram and Facebook and tough competition from TikTok. Earlier in January, Michael Nathanson of MoffettNathanson said Meta Platforms, Inc. (NASDAQ:META) and Google present “really attractive” entry points for investors. The analyst thinks people are overblowing the fears regarding the ads industry. He thinks the challenges in the ads industry are cyclical in nature.

Rowan Street Capital made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q4 2022 investor letter:

“Meta Platforms, Inc. (NASDAQ:META) Stock declined -64% in 2022, while their revenues fell just -2% and earnings per share (EPS) declined -37% due to a ramp-up in investment expenses, which we have covered to a great extent in our recent write-up on META). Meta is our second biggest holding in the fund and one that has been a significant detractor from performance in 2022. We published a write-up back in November: Does a $750 billion decline in Meta’s market cap make sense? We strongly encourage you to read it if you have not had a chance to do so. We expect our META holding to be a solid contributor to the fund’s performance over the next several years as well.”

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