RiverPark Funds, an investment management company, released its “RiverPark Large Growth Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. The second quarter was extremely difficult for the fund which returned -34%. Year to date, the fund returned -47%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
RiverPark Funds discussed stocks like Meta Platforms, Inc. (NASDAQ:META) in the second quarter investor letter. Meta Platforms, Inc. (NASDAQ:META) is a technology conglomerate headquartered in Menlo Park, California. On September 20, 2022, Meta Platforms, Inc. (NASDAQ:META) stock closed at $146.09 per share. One-month return of Meta Platforms, Inc. (NASDAQ:META) was -10.52% and its shares lost 57.43% of their value over the last 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $392.624 billion.
Here is what RiverPark Funds specifically said about Meta Platforms, Inc. (NASDAQ:META) in its Q2 2022 investor letter:
“Meta Platforms, Inc. (NASDAQ:META) is the second largest global advertising company and the largest global social media network. The company runs Facebook, Instagram, and WhatsApp which together reach more than 3.5 billion people monthly (a staggering 70% of the roughly 5 billion people thought to use the internet globally each month). The company, through its websites, apps, and media network, has created the most effective advertising targeting system in the world, which has lowered customer acquisition costs and brought down barriers to entry for tens of millions of small merchants in hundreds of industries in nearly every country in the world. We expect the company’s investments in shortform video to reinvigorate growth in the near term and its investments in the metaverse to ensure the company’s dominance in the social media space over the medium to long term.
Meta’s core social media advertising business is high margin and capital efficient. We expect Meta to use a large portion of the cash the advertising business generates to make investments that will lay the groundwork for the next chapter of growth. Despite this reinvestment, we expect Meta to generate roughly half of its current enterprise value in cash over the next five years and about 150% of the current enterprise value in cash by 2030. Using a historical market multiple of 18x 2027 EPS of $39.39 yields a stock price in 2026 (4 years hence) of $709, more than four times its current price.”
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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 Saga Partners’ views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.
