Bill Ackman and David Tepper both expanded their Meta Platforms stakes during the second quarter, newly disclosed Form 13F filings show. The disclosures come after a weak earnings report sent Meta's stock lower, though the exact prices either fund paid remain unknown.
Ackman and Tepper add to Meta stakes
The latest round of Form 13F filings shows Bill Ackman's Pershing Square raised its Meta Platforms stake by 20% during the quarter, a position that now makes up nearly 10% of the fund's holdings. David Tepper's Appaloosa Management increased its Meta stake by more than 50%, building it into 5% of the portfolio.
These filings only show positions as of June 30, and Meta's stock has moved since then. Shares are down 3% from where the quarter ended. Since April 1, the stock is down around 6%, and Ackman and Tepper could have bought at any point during the quarter, so their actual entry prices are unknown.
Weak Q2 earnings weighed on the stock
Meta's stock rose early in July before a poorly received earnings report reversed those gains. Revenue grew 28% during the quarter. Costs, however, rose 55%, which shrank operating profit.
Questions about Meta's AI spending added to the pressure. CEO Mark Zuckerberg published a document outlining the company's AI plans, but it stopped short of laying out a path to monetizing that investment.
A cheaper valuation than the broader market
Meta trades at 17.5 times forward earnings, well below the S&P 500's 21.4 times, according to Motley Fool analyst Keithen Drury. Ackman and Tepper are known as value investors, and Drury suggested they are betting the company will eventually become a viable AI business.
Drury called Meta a potential bargain at current levels, but cautioned it is far from a surefire bet.
Source: The Motley Fool
Trading involves risk.
Risk Disclaimer
