Strong Dollar is Crushing These 5 Stocks

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

Number of Hedge Fund Holders: 200 

Meta Platforms, Inc. (NASDAQ:META) shares traded 3% lower on July 27 after the Q2 2022 results missed Wall Street consensus and Q3 guidance fell short of analysts’ expectations. The company expects Q3 revenues ranging between $26 billion to $28.5 billion, versus Wall Street’s forecast of $30.38 billion. Meta Platforms, Inc. (NASDAQ:META) said that the weak Q3 guidance factors in soft advertising demand, and  foreign currency headwinds will result in a 6% headwind to revenues in Q3. 

On July 28, RBC Capital analyst Brad Erickson lowered the price target on Meta Platforms, Inc. (NASDAQ:META) to $190 from $200 and assigned an Outperform rating to the shares. The company’s Q2 results were “roughly in-line” with his estimates but its Q3 guidance was 10% below market consensus, the analyst told investors. Reels must boost monetization and curb Tik Tok market share loss, target audience must improve, and investors must “find religion” on Metaverse investments before the stock moves out of its present valuation range, the analyst added.

According to Insider Monkey’s Q1 data, 200 hedge funds were bullish on Meta Platforms, Inc. (NASDAQ:META), down from 224 funds in the last quarter. Boykin Curry’s Eagle Capital Management is a notable position holder in the company, with 7.4 million shares worth $1.65 billion. 

Here is what Boyar Value Group has to say about Meta Platforms, Inc. (NASDAQ:META) in its Q4 2021 investor letter:

“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. (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).”