Stan Druckenmiller Is Still Very Bullish On These 5 Stocks

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

Duquesne Capital’s Equity Stake: $15.69 million
Number of Hedge Fund Holders: 225

Meta Platforms, Inc. (NASDAQ:META) is a social networking company that makes apps for people to connect. Its products are Facebook, Instagram, Messenger, WhatsApp, and Oculus. It makes money primarily from running ads on the popular social networking apps. 

Meta Platforms, Inc. (NASDAQ:META) stock has rallied by about 150% year to date after outperforming the Nasdaq 100, up by about 45%. The rally has come on the company delivering solid financial results bolstered by increased ad spending. Druckenmiller Duquesne Capital held stakes worth $15.69 million in the company, accounting for 0.55% of the portfolio, having acquired stakes in Q2 2014. 

Meta Platforms, Inc. (NASDAQ:META) had 225 hedge funds holding shares in it at the end of Q2 2023, out of the 910 hedge funds Insider Monkey tracks. The hedge fund with a prominent stake in the company was Nancy Zevenbergen’s Zevenbergen Capital Investments.

Here is what Rowan Street Capital said about Meta Platforms, Inc. (NASDAQ:META) in its third-quarter 2023 investor letter:

“Meta Platforms, Inc. (NASDAQ:META): $550 billion rebound in market cap in less than a year.

A deep dive into what is driving the optimism for the stock.

It’s been exactly 11 months since we published an article: “Does a $750 billion decline in Meta’s market cap make sense?” META is up +240% since then compared to the S&P 500 advance of +13.5% over the same period. We will examine what drove this abnormal return. But first, we can’t help but wonder: How is it possible for a trillion-dollar company to first drop -75% to $268 billion in market cap and then skyrocket +250% to over $800 billion in market cap all in just less than 2 years. We are not talking about some micro-cap company here. META is the 7th largest company in the world. It is very well-known to everybody and is covered by 45+ analysts.

Are the markets efficient when you witness this kind of a phenomenon?

We believe that the markets have become much less efficient over the short term with the proliferation of the internet, smartphones, social media and effortless access to information. This is counterintuitive to what the academics teach us, but that is how it has worked. We will spare you further discussion on the efficiency of the markets as the purpose of this note was to discuss our investment in META. We want to share this observation and be clear that we are not complaining here. Part of our job as fund managers is to exploit these market inefficiencies and drive value to the Rowan portfolio over the long run. And over the long run, the markets do a pretty good job valuing companies…” (Click here to read the full text).

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