Analysts Think These 5 Stocks Are Overvalued

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

Number of Hedge Fund Holders: 248

Meta Platforms, Inc. (NASDAQ:FB) is the parent organization of Facebook, Instagram, and WhatsApp, among other subsidiaries. According to Steve Weiss of Short Hills Capital Partners on February 4, Meta Platforms, Inc. (NASDAQ:FB) is an overvalued stock and he has cut his position by more than half, and is looking to unload the rest of his shares. He believes that over the years, Meta Platforms, Inc. (NASDAQ:FB) has become a “hated company” and Facebook users are declining, and investors have better options to invest in tech now. He believes that the metaverse is too far ahead in the future to redeem Meta Platforms, Inc. (NASDAQ:FB), and the stock will be a “sinkhole” in the meantime. 

On February 2, Meta Platforms, Inc. (NASDAQ:FB) reported earnings for Q4 2021. The company posted an EPS of $3.67, missing estimates by $0.15. Revenue over the period gained roughly 20% year-over-year, reaching $33.67 billion, exceeding estimates by $230.60 million. 

KGI Securities analyst Freddy Chen on February 9 downgraded Meta Platforms, Inc. (NASDAQ:FB) to Neutral from Outperform with a $270 price target. 

Among the hedge funds tracked by Insider Monkey in Q3 2021, 248 funds were bullish on Meta Platforms, Inc. (NASDAQ:FB), down from 266 funds in the quarter earlier. Eagle Capital Management held a prominent stake in Meta Platforms, Inc. (NASDAQ:FB) in the third quarter, with more than 7 million shares worth $2.4 billion. 

Here is what Weitz Investment Management has to say about Meta Platforms, Inc. (NASDAQ:FB) in its Q4 2021 investor letter:

“A couple of other platform companies deserve a mention as well. Meta Platforms and Alphabet have both been under regulatory scrutiny that has affected their valuations. The threats of punitive action are real, but we have tried to be imaginative about how onerous any fines, rule changes or forced divestitures might be, and we believe that the five year outlook for each is well above average under almost any scenario. So, we include these two in the list of the under-appreciated.”

You can also take a look at 10 Healthcare Dividend Stocks with Over 3% Yield and 10 Best Value Stocks in Warren Buffett’s Portfolio. 

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