"Undoubtedly, AI spending jitters have weighed on Meta Platforms far more than some of the other Mag Seven giants. Given Meta Platforms' willingness to pay up for the best-in-breed AI talent out there, perhaps it's not a shocker that shares would find themselves down by so much in such a short timespan. Lots of hedge funds sold Meta Platforms stock in Q3. Does it matter?"
"Of course, hedge fund activity may be seen as a red flag for some, a yellow flag for others, and perhaps no flag at all for most. Though I believe there's value in seeing what the smart money has been up to, I also acknowledge that nobody, not even the greats, knows with certainty where markets are headed in the near term. And that includes a quarter-to-quarter basis."
"Still, combined with broad AI bubble chatter that's bombarding the financial news as well as many smart people saying scary things about the future of the market and the tech trade, it doesn't seem all too unwise to take profits in the hot trades where there are still profits to be had! Though I saw more sells and trims than buys and top-ups of shares of Meta Platforms in the third quarter, much of the selling was mere position trimmings, not liquidations."
Many major hedge funds reduced holdings in big-tech stocks, notably Meta Platforms, during the third quarter. Profit-taking occurred as several names fell from peak valuations and Meta underperformed the S&P 500. AI spending concerns hit Meta more intensely than some other large tech firms, driven by elevated talent and development costs. Most hedge-fund selling represented position trims rather than outright liquidations, although a few funds cut stakes dramatically. Market chatter about an AI bubble and bearish forecasts made trimming profitable hot trades appear prudent for some investors.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]