From Yahoo Finance · · 1m 50s
Bill Ackman dumps Google, bets on Meta and Netflix
The hedge fund legend exits a tech giant and doubles down on two beaten-down streaming and social media stocks.
In brief
The hedge fund legend exits a tech giant and doubles down on two beaten-down streaming and social media stocks. Sometimes the best investment opportunities hide in stocks that have recently disappointed the market. Originally reported by Yahoo Finance.
Ackman exits Google, surprises investors
Bill Ackman's Pershing Square closed its position in Alphabet during Q2, walking away from a tech leader that appeared to be performing well.
Ackman bets big on Meta and Netflix
Instead, Ackman bought more Meta shares and started a new Netflix position. Both stocks have significantly underperformed the broader market over the past 12 months.
Meta's revenue surges despite profit drop
Meta's Q2 revenue jumped 28% year-over-year to $60.8 billion, but earnings per share fell 13% to $6.18 due to heavy AI investments weighing on margins.
Meta's AI agents could unlock growth
Meta is developing personalized AI agents to help users accomplish goals faster. With 3.6 billion daily active users, successful AI agents could significantly boost engagement across Meta's platforms.
Meta settles lawsuits, adds new revenue
Meta recently settled many social media harm lawsuits for a modest amount and is exploring selling excess AI computing capacity, a high-demand business with strong margins.
Netflix faces mature market, cord-cutting
Netflix's business has matured and faces more competition, leading to weaker engagement and unimpressive financial results. However, cord-cutting should continue driving long-term streaming growth.
Netflix could become a streaming hub
Netflix is reportedly considering letting users access other streaming platforms through its app, becoming a hub where it charges competitors for access while boosting its own ad business.
Netflix's data moat remains powerful
Netflix's massive ecosystem, brand name, and data flywheel that informs content strategy give it a competitive advantage that suggests brighter prospects than recent stock performance indicates.
Here's the gist
Sometimes the best investment opportunities hide in stocks that have recently disappointed the market.
