Hedge Funds Were Right About MicroStrategy Incorporated (MSTR) and 4 Other Tech Stocks

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

Number of Hedge Fund Holders in Q1 2022: 200    

Number of Hedge Fund Holders in Q4 2021: 224 

Meta Platforms, Inc. (NASDAQ:META) is a tech firm that owns and runs social media platforms. On June 16, the company was among a group of around 30 tech giants that pledged to upgrade their platforms to fight fake news after the European Union tightened laws around online content that could result in big fines for these firms. Under the new guidelines, companies failing to meet certain standards in news distribution would be faced with fines of as much as 6% of their global turnover, per news agency Reuters. 

On June 8, Piper Sandler analyst Thomas Champion maintained a Neutral rating on Meta Platforms, Inc. (NASDAQ:META) stock with a price target of $220, noting that the firm faced headwinds from further privacy issues and TikTok competition. 

At the end of the first quarter of 2022, 224 hedge funds in the database of Insider Monkey held stakes worth $19 billion in Meta Platforms, Inc. (NASDAQ:META), compared to 248 in the preceding quarter worth $31 billion. 

In its Q4 2021 investor letter, Boyar Value Group, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:META) was one of them. Here is what the fund said:

“Corporate executives can have many different reasons for selling shares (anticipation of tax law changes, philanthropy, diversification, and much more), but the sheer number of billionaire founders who sold shares in 2021 should raise eyebrows and might well be signaling a market top. Bloomberg’s Ben Steverman and Scott Carpenter report not only that Mark Zuckerberg of Meta Platforms, Inc. (NASDAQ:META) (formerly known as Facebook) sold shares in his company almost every day last year but also that the founders of Google sold ~$3.5 billion worth of stock (the first time either Sergey Brin or Larry Page has sold shares since 2017).”

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