Billionaire Dan Loeb has just changed his mind about this incredible stock intelligence (AI) Motley fool
After excluding from the portfolio of his fund in the first quarter, this shares were one of the largest purchases of Loeb in the second quarter.
Millionaire Dan Loeb is one of the most monitored activist investors on Wall Street. His hedge fund, the third point, management of $ 21.1 billion, approximately one third of which has invested in the public capital portfolio.
It is supported by a team of more than 60 people, but Ultimataly is in charge of the third point portfolio. He said that in mid -April he sold out from most of the “magnifier” shares and profits from the table in early 2025 before the market crashed in the middle of the customs fears.
At the end of the first quarter, Sold would significantly participate in his betting Microsoft and Amazon While completely eliminating positions Tesla,, Appleand Meta platform (Meta 0.70%). But Loeb was the buyer of most of them again in the second quarter, including. Here is why Loeb may have changed his opinion on AI leaders.
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Why Loeb sold the meta in the first place?
Loeba’s decision seemed to be mostly driven by his growing awards. Meta shares reached the Forward P/E 26.5 ratio during the first quarter.
“We realized profits at the beginning of the year through opportunist sales near Maxim in Meta,” Loeb told investors in his first development.
It is very likely that Loeb was worried about this award because the uncertainty grew about President Donald Trump’s business policy. The basic advertising business of META concerned trust in business. If businesses are not certain in the ability to obtain their products or in the willingness of the consumer, less will will pay for advertising in META applications.
Meanwhile, Meta is hard to invest in artificial intelligence infrastructure. Management said he was planning to spend $ 60 billion to $ 65 billion on capital expenditures this year, out of $ 39 billion in 2024. Due to increasing uncertainty about what could be a short -term return on these investments, LOEB took the opportunity to take some money from the table.
TIPTOEING BACK IN
The third point ended the second quarter with 150,000 META shares. Although at that time it represents only 1.5% of its public capital portfolio, it was enough to become one of the largest Verans Hedge fund in the quarter.
So what led to conversion?
It could have been a strong message about earnings from the first Quetter, which was delivered at the end of April. The company recorded Strong returned growth, expanded its operating margin and expressed great confidence in the next quarter and further. She also increased her plans for capital expenditure.
Management also explained that the investment of meta in artificial intelligence is already being paid. This statement was supported by growth in both the impression of AD and the average NL prices, which increased by increasing its content and algorithms of retediation and. The key focus of the company’s expenditure remains the long -term potential for AI to facilitate advertising on META property and to expand advertising opportunities.
However, META shares are again trading with high award. In fact, shares now carry higher earnings than if LOEB and his team sold shares in the first quarter.
Should retail investors now buy meta platforms?
The results of the meta first quarter provided investors such as Loeb trust in shares, and its results of the second quarter were probably even better.
Return growth accelerated and its operating margin has spread again. The profits of operating margins are perhaps the most impressive aspect of narration, as the leadership warned of increasing depreciation expenditure from all its AI investments.
However, these AI investments may be a distinguishing factor between meta and other digital advertising platforms. Meta is able to offer traders higher returns from their advertising expenditure, even if they charge their premium prices. As a result, the meta returned faster than smaller social media platforms that have made last quarter.
This should give investors the assurance that his AIT strategy is already paying off. Combine this with a long -term potential for AI for business transformation and makes sense for stocks to trade at a premium price. Since shares are currently trading with more than 27 times expected earnings, it may still be underestimated. We will not know that or not, Loeb took the profits again in November, when the third point will give his next 13f to publish on the Securities and Stock Exchange Commission. But for most retail investors, META shares are worth buying or sticking right now.
Adam Levy has positions in Amazon, Apple, Meta Platforms and Microsoft. Motley Fool has positions and recommends Amazon, Apple, Meta Platforms, Microsoft and Tesla. Motley Beble recommends the following options: long January $ 2026 395 calls on Microsoft and short January 2026 405 calls on Microsoft. Motley fool has a publication of politics.