CoreCap Advisors LLC has increased its position in Meta Platforms, Inc. (NASDAQ: META) by 20.3% during the third quarter of 2023. According to the firm’s latest 13F filing with the Securities and Exchange Commission, CoreCap now holds 14,829 shares of the social networking giant after acquiring an additional 2,504 shares during this period. The total value of CoreCap’s holdings in Meta Platforms is reported at $10,891,000 as of the end of the most recent reporting period.
The trend of institutional investment in Meta is notable, with several hedge funds recently adjusting their stakes. For instance, Bay Colony Advisory Group Inc., operating as Bay Colony Advisors, increased its holdings in Meta by 0.4% in the second quarter, bringing its total to 3,506 shares, valued at approximately $2,587,000. Similarly, Pachira Investments Inc. raised its position by 3.0%, now owning 488 shares worth $360,000, while Hemington Wealth Management boosted its stake by 0.6%, holding 2,223 shares valued at $1,641,000.
In the third quarter, Trust Co of the South increased its position in Meta by 0.8%, now owning 1,850 shares valued at $1,359,000. Additionally, Sentinel Pension Advisors LLC grew its stake by 1.6%, bringing its total to 915 shares worth $672,000. Collectively, institutional investors currently own 79.91% of Meta’s stock.
Analyst Ratings and Market Performance
Recent evaluations from equity research analysts reveal a mixed sentiment regarding Meta’s stock. On October 14, 2023, the Goldman Sachs Group reaffirmed a “buy” rating on Meta shares. In contrast, Zacks Research downgraded the stock from a “strong buy” to a “hold” rating on November 18, 2023. Morgan Stanley also revised its price target for Meta from $820.00 to $750.00, maintaining an “overweight” rating.
Overall, out of the analysts covering Meta, four have issued a Strong Buy rating, thirty-nine have given a Buy rating, and seven have assigned a Hold rating. The consensus rating stands at “Moderate Buy” with an average target price of $822.96, according to data from MarketBeat.com.
Meta Platforms has experienced fluctuations in its stock performance. On October 29, 2023, the company reported $7.25 earnings per share, exceeding the consensus estimate of $6.74. Revenue for the quarter reached $51.24 billion, significantly surpassing analyst expectations of $49.34 billion. This represents a 26.2% year-on-year increase.
Recent Developments and Strategic Moves
Meta’s latest quarterly earnings have contributed to a positive outlook among some analysts. Notably, TD Cowen has raised its price target to $820, citing a favorable valuation narrative. The company is also reportedly enhancing its production capacity for Ray-Ban Meta smart glasses, aiming to double output from 10 million to 20 million units, reflecting a strong market demand for AI wearables.
To further bolster its strategic initiatives, Meta appointed Dina Powell McCormick as president and vice chair to oversee its artificial intelligence and infrastructure development. This move aims to enhance execution capabilities and align governance with the company’s long-term objectives.
Despite these positive developments, challenges persist. Reports indicate Meta will cut approximately 10–15% of its Reality Labs workforce, affecting between 1,000 and 1,500 jobs. This restructuring is seen as a shift away from virtual reality and metaverse projects towards more consumer-oriented AI wearables. Concerns regarding capital expenditures and execution risks have also surfaced, particularly following critical commentary from high-profile investors.
Additionally, regulatory challenges have emerged, including Brazil’s suspension of a WhatsApp policy and issues concerning account removals and bans in Australia, which could introduce further volatility for the company.
Meta Platforms, Inc. remains a key player in the technology sector, best known for its social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company has expanded its strategic focus to include augmented and virtual reality technologies, rebranding itself as Meta in October 2021.
As the company navigates these complex dynamics, investors and analysts will be closely monitoring its performance and strategic decisions in the coming quarters.
