Latest news with #META
Yahoo
21 hours ago
- Business
- Yahoo
Meta Platforms (META): Wedgewood Partners' Leading Contributor to Performance
Wedgewood Partners, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, Wedgewood Composite's net return was 7.1% compared to the Standard & Poor's 10.9%, the Russell 1000 Growth Index's 17.8%, and the Russell 1000 Value Index's 3.8% return for the same period. In addition, you can check the fund's best 5 holdings to know its best picks in 2025. In its second quarter 2025 investor letter, Wedgewood Partners highlighted stocks such as Meta Platforms, Inc. (NASDAQ:META). Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. The one-month return of Meta Platforms, Inc. (NASDAQ:META) was 2.79%, and its shares gained 47.11% of their value over the last 52 weeks. On July 17, 2025, Meta Platforms, Inc. (NASDAQ:META) stock closed at $701.41 per share, with a market capitalization of $1.764 trillion. Wedgewood Partners stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its second quarter 2025 investor letter: "Meta Platforms, Inc. (NASDAQ:META) was once again a leading contributor to performance for the quarter – and our best portfolio performer since the panic-selling lows in the stock back in September of 2022. Revenue grew +16% despite ad-spending headwinds related to trade protectionism, and operating margins expanded thanks to continued investments in automation, driving a stellar +37% growth in earnings per share. The Company has been a consistent beneficiary of artificial intelligence (AI) over the past several years, investing aggressively in deep learning recommendation systems that help power it's products which reach nearly half the population of the planet. Meta's AI investments, combined with its massive scale, allow the Company to quickly spin up new products across its digital advertising real estate to reinforce its competitive positioning. Meta's core Family of Apps products are backed by extremely large and complex (i.e. difficult to copy) AI recommendation systems that have to sort through billions of datapoints in real time and come up with the probability of a user clicking on something. Meta is one of the few companies that has been able to consistently and, most critically, profitably monetize AI technologies for shareholders, and we continue to hold the stock as a top position in portfolios." Meta Platforms, Inc. (NASDAQ:META) is in third position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 273 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the first quarter, which was 262 in the previous quarter. In Q1 2025, Meta Platforms, Inc. (NASDAQ:META) reported revenue of $42.3 billion, up 16% from Q1 2024. While we acknowledge the potential of IQV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Meta Platforms, Inc. (NASDAQ:META) and shared the list of stocks Jim Cramer weighed in. In its Q2 2025 investor letter, Rowan Street Capital highlighted Meta Platforms, Inc.'s (NASDAQ:META) role in boosting its long-term performance. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21 hours ago
- Business
- Yahoo
Cantor Fitzgerald Lifts Meta to $828 Price Target on AI Talent, Ad Gains
Meta Platforms, Inc. (NASDAQ:) is one of the . On July 16, Cantor Fitzgerald raised its price target on the stock to $828.00 from $807.00, while maintaining an 'Overweight' rating. The firm raised its FY26E EPS estimates by 3% and reiterated its Overweight rating / Top pick. Earnings Preview: 'We expect META to report 2Q25E results with a decent upside to consensus on revenues and EPS driven by outperformance in the core ads business as tariff-driven uncertainties moderated in May/June. The company's 3Q25E revenue guide should indicate stable y/y growth with little deceleration (around $47.5/$48B at the high-end). On FY outlook, META is likely to reiterate its opex guidance, but recent investments in AI talent (CFe ~$500M–$1B in incremental annual opex) move the target above the low end. Our checks with digital ad agencies and performance marketers in June/early July indicated healthy ad spend and share gains by META in 2Q, including a modest acceleration from April trends (adjusted for Easter). While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
a day ago
- Business
- Business Insider
‘Today's AI Frenzy Is Worse than 1999's Dot-Com Bubble,' Says Economist
A top economist from Wall Street is warning that AI stock prices may be becoming too high, much like during the dot-com bubble in the late 1990s. Torsten Sløk, chief economist at Apollo Global Management (APO), said on Yahoo Finance's Opening Bid that while AI will likely transform many industries, that doesn't mean investors should buy tech stocks at any price. In a recent note, Sløk shared data showing that the price-to-earnings ratios of the 10 largest companies in the S&P 500—many of which are AI leaders, such as Nvidia (NVDA) and Meta (META) —have now surpassed the extreme levels seen in 1999. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Sløk explained that this is creating a risky situation where a large part of the market depends on just a few tech giants. He noted that the 10 largest companies now make up almost 40% of the entire S&P 500 (SPY) index. This means that if someone buys the index, thinking they're investing in 500 companies, they're actually heavily exposed to just a few names, especially those tied to AI. Sløk added that the current stock prices of these mega-cap tech companies may not be sustainable since too much of the recent market rally is being driven by excitement and momentum rather than solid fundamentals. Interestingly, analysts at BTIG have similar worries, as they describe the market's sentiment as 'frothy.' Indeed, they pointed to the BUZZ NextGen AI Sentiment Index, which tracks popular AI stocks among retail investors. That index has jumped 45% over the past 16 weeks and is now 29% above its 200-day average. It is worth noting that these levels have not been seen since early 2021, right before speculative tech stocks began to fall. Because of this, BTIG suggested that investors think about shifting to safer areas like utilities or even Chinese tech stocks. Which AI Stock Is the Better Buy? Turning to Wall Street, out of the two stocks mentioned above, analysts think that NVDA stock has more room to run than META, but just barely. In fact, both stocks have almost 6% upside potential from current levels.
Business Insider
2 days ago
- Business
- Business Insider
Meta's $8B Data Scandal Trial Ends Early with Settlement
Mark Zuckerberg and other top executives of Meta Platforms (META) have settled a shareholder lawsuit tied to the 2018 Cambridge Analytica data scandal. The suit, which sought up to $8 billion in damages, accused Meta leadership of causing financial harm by allowing repeated privacy violations on Facebook. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Meta's $5B FTC Fine Sparked Backlash Shareholders also targeted Meta's board for approving a $5 billion fine levied by the Federal Trade Commission (FTC), a deal they claimed shielded Zuckerberg from personal liability. The plaintiffs argued that the board failed to prevent Meta from violating a 2012 FTC order that restricted its data-sharing practices. These claims followed revelations that Cambridge Analytica, a now-defunct political consulting firm linked to Donald Trump's 2016 presidential campaign, had improperly accessed data from millions of Facebook users. The scandal led directly to the record-setting FTC fine. An Abrupt End to the Trial The settlement abruptly ended the trial on its second day, meaning Meta executives and board members will no longer have to testify about their handling of the breach. On the first day, an expert witness for the plaintiffs pointed to 'gaps and weaknesses' in Facebook's privacy policies, but did not confirm whether META violated the 2012 FTC agreement. Details of the settlement remain undisclosed. The trial was overseen by Judge Kathaleen McCormick of the Delaware Court of Chancery, who praised both sides for reaching an agreement. Is Meta a Buy, Hold, or Sell? Turning to Wall Street, META stock has a Strong Buy consensus rating based on 41 Buys and four Holds assigned in the last three months. The average Meta share price target is $741.31, which implies an upside of 5.29% from current levels.
Business Insider
2 days ago
- Business
- Business Insider
Top Analysts Boost Meta Platforms Stock Price Target Ahead of Q2 Earnings
Top analysts from Jefferies and Canaccord Genuity boosted their price targets for Meta Platforms (META) stock ahead of the social media giant's Q2 earnings on July 30. While Jefferies' 5-star analyst Brent Thill raised the price target for META stock from $790 to $845, Canaccord Genuity's top analyst Maria Ripps increased her price target from $825 to $850. Both top-rated analysts reaffirmed a Buy rating on Meta Platforms stock, reinforcing their confidence in the company's growth potential. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. These price target hikes came in even as META CEO Mark Zuckerberg faces an $8 billion shareholder lawsuit over accusations of privacy breach. Meanwhile, Wall Street expects Meta Platforms to report earnings per share (EPS) of $5.84, reflecting a 13.2% year-over-year growth. Top Jefferies Analyst Is Upbeat About Meta's Q2 Earnings Thill raised his Q2 and full-year revenue estimates for Meta Platforms by 3.1% and 2.6%, respectively. The 5-star analyst expects Meta to deliver revenue of $45.2 billion in Q2, suggesting a 15.7% year-over-year growth, which is higher than the Street's consensus estimate of 14.2%. Additionally, Thill contends that Meta Platforms' Q3 guidance seems achievable, given easier comparisons and some conservatism in the Street's estimates. Meanwhile, Thill believes that Meta's $14.3 billion investment in Scale AI and the appointment of Alexandr Wang, founder of Scale AI, as the Chief AI Officer, along with the hiring of many other high-profile researchers, indicate the company's intention to streamline its AI organization and revamp leadership following the disappointing response to Llama 4. Thill argues that while Meta's capex is expected to stay elevated and put pressure on its near-term earnings, he remains confident about the long-term return on investment (ROI). Thill explained that his constructive view is supported by favorable checks on CPM (cost per mille), an increase in time spent as indicated by SensorTower, and other positive metrics. CPM indicates the cost an advertiser pays for one thousand impressions of an ad. Canaccord Views META Stock as a Top Digital Ad Pick Ripps stated that META stock remains Canaccord Genuity's top digital advertising pick. Despite its premium valuation, Ripps continues to like META stock, driven by several tailwinds. The analyst expects the company to report impressive Q2 results, backed by mid-teens year-over-year growth in ad revenue. For Q2, Ripps expects both ad revenue and total revenue to grow by about 14% year-over-year, with the modest sequential deceleration reflecting tariff-related uncertainty. The analyst expects Meta's growth to be driven by continued AI-driven improvements to content creation and ad recommendation models. Notably, the company launched a new generative ad recommendation model in Q1 2025, which is twice as efficient at improving ad performance as legacy models. Looking ahead, Ripps expects the pace of innovation to remain robust at Meta, bolstered by the acquisition of a 49% stake in Scale AI, hiring of OpenAI and Apple (AAPL) researchers, unveiling of Meta Superintelligence labs, and the acquisition of voice AI startup PlayAI. Ripps noted that while META stock is trading near all-time highs, the setup continues to look attractive, particularly as we move into 2026. Is META a Good Stock to Buy? Overall, Wall Street is bullish on Meta Platforms stock, with a Strong Buy consensus rating based on 41 Buys and four Hold recommendations. The average META stock price target of $737.86 indicates a 5% upside potential. META stock has risen 20% year-to-date.
