Analysts Say You Should Buy These 5 Stocks on the Dip

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

Number of Hedge Fund Holders: 200

Decrease in Share Price Over Past Month: 2.94%

Meta Platforms, Inc. (NASDAQ:FB) is a tech firm that owns and runs social media platforms. On May 20, the company announced that it was working on a plan to open WhatsApp, the popular messaging application, to businesses of any size. As part of the overhaul plan, the firm said it would also introduce a cloud-based application programming interface for the purpose. The firm claims that over a billion users already avail the business services offered by WhatsApp. Over two billion people around the world use the messaging application. 

On May 24, Jefferies analyst Brent Thill maintained a Buy rating on Meta Platforms, Inc. (NASDAQ:FB) stock and lowered the price target to $310 from $330, noting that the revenue estimates for a number of digital ad firms were being lowered for the 2023 and 2024 fiscal year.

At the end of the first quarter of 2022, 200 hedge funds in the database of Insider Monkey held stakes worth $19.3 billion in Meta Platforms, Inc. (NASDAQ:FB), compared to 224 in the preceding quarter worth $31.8 billion. 

In its Q1 2022 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:FB) was one of them. Here is what the fund said:

“Meta Platforms, Inc. (NASDAQ:FB), the parent company of Facebook, reported excellent operating results in 2021. Its revenue increased 37%, operating earnings increased 40%, and the company generated $40 billion of free cash flow. Despite these excellent results, Meta experienced extreme volatility in its stock price during the first quarter. We believe that two factors are responsible for this volatility. First, the company quantified the headwind to revenue from Apple’s recent privacy changes in the amount of approximately $10 billion for 2022. Meta is rebuilding its advertising technology, and we believe the long-term headwinds from Apple’s privacy changes will be limited because Meta Platforms, Inc. (NASDAQ:FB) will create a suitable solution. Second, Meta continues to invest heavily into its Reality Labs segment, also known as the metaverse. While we believe the metaverse presents great opportunity for Meta Platforms, Inc. (NASDAQ:FB), we are not assigning any value to it in our valuation work. While 2022 may be challenging for Meta, the company’s competitive advantages are still intact, and the company trades at a significant discount to our estimate of its intrinsic value. Despite our concerns about a possible recession, we expect Meta to return to double-digit bottom line growth next year.”

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