Rowan Street Capital, an investment management company, released its August update recently. A copy of the same can be downloaded here. Since the end of the second quarter, the fund has been 30% up. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Rowan Street Capital discussed stocks like Meta Platforms, Inc. (NASDAQ:META) in the August update letter. Meta Platforms, Inc. (NASDAQ:META) is a technology conglomerate headquartered in Menlo Park, California. On October 10, 2022, Meta Platforms, Inc. (NASDAQ:META) stock closed at $133.79 per share. One-month return of Meta Platforms, Inc. (NASDAQ:META) was -12.63% and its shares lost 58.68% of their value over the last 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $359.567 billion.
Here is what Rowan Street Capital specifically said about Meta Platforms, Inc. (NASDAQ:META) in its August month investor letter:
“Meta Platforms, Inc. (NASDAQ:META) gets a lot of negative news coverage, and there has been a general negative sentiment floating around the company for some time. But let’s take a look at what’s “under the hood”. In recent quarter, Family of Apps daily active people hit 2.88 billion, while monthly active people grew to 3.65 billion — these are mind-boggling numbers. In the past 12 months, they earned $33.20 in revenue per user, which amounted to $118 billion in total revenues. On that, they generated almost $40 billion in operating profits (34% operating margin) and $58.5 billion in operating cash flow. That is far from a disaster! In the most recent quarter, investors have been concerned that total revenues declined 1% (Y/Y) and are estimated to decline 6% (Y/Y) in Q3, which reflects weak advertising demand. At the same time, Meta is continuing to reinvest in its business with total expenses growing 22% (Y/Y) in Q2, which caused operating profit and earnings per share (EPS) to decrease 32%. Meta is in the midst of an economic cycle that is having a broad impact on the digital advertising business. They are being disciplined on spending while still investing in those areas that will position to drive growth as the economic environment improves. The investments they are making in Reels, discovery engine, business messaging, retooling their ads system, building out industry-leading AI technology infrastructure, and especially in helping to build the metaverse, represent enormous opportunities for their business and their partners. Meta is a company that has shown extraordinary resilience over time. Zuck & Co. have demonstrated time and time again that they are prepared to move quickly and at scale to respond to changes in consumer behavior, the macroeconomic landscape, and the needs of their advertising partners.”
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Meta Platforms, Inc. (NASDAQ:META) is in 4th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 184 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the second quarter which was 200 in the previous quarter.
We discussed Meta Platforms, Inc. (NASDAQ:META) in another article and shared the best fundamental stocks to buy. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
