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Here’s Why RGA Investment Advisors Sold Some of its Holdings in Meta Platforms (META)

RGA Investment Advisors, an investment management company released its first quarter 2024 investor letter. A copy of the letter can be downloaded here. Strong economic growth combined with frustratingly resilient inflation defined the macroeconomic environment in the first quarter. The large caps outperformed their smaller counterparts in Q1. It may be the result of continued momentum in the market. Kindly check the top 5 stocks of the strategy to know its best picks in 2024.

RGA Investment Advisors highlighted stocks like Meta Platforms, Inc. (NASDAQ:META), in the first quarter 2024 investor letter. Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. The one-month return of Meta Platforms, Inc. (NASDAQ:META) was 7.53%, and its shares gained 79.42% of their value over the last 52 weeks. On June 14, 2024, Meta Platforms, Inc. (NASDAQ:META) stock closed at $504.16 per share with a market capitalization of $1.279 trillion.

RGA Investment Advisors stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its first quarter 2024 investor letter:

"We believe this section is crucial for highlighting some of the key lessons we have learned since 2022. At the outset, let us clarify that Meta Platforms, Inc. (NASDAQ:META) remains one of our three largest positions, fluctuating based on daily market movements. As you read this, it might in fact be our largest holding. In the closing remarks of our Q4 2022 commentary, we noted that we had “made…META substantially larger” during the quarter. Never did we expect the stock to generate such substantial returns in a short period of time. Between Mark Zuckerberg’s “Year of Efficiency,” a recovery in the digital ad market and an improving macro backdrop, META’s key multiples recovered to a comfortable level within their long-term ranges:

Although these multiples are now back to “normal” levels, they are hardly expensive for a company whose top line growth re-accelerated into the double digits, with operating leverage and despite ongoing heavy investments in the Reality Labs segment. These are the reasons why we continue to hold a large position in META. As for why we did some selling, we want to emphasize a few key points:..." (Click here to read the full text)

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Meta Platforms, Inc. (NASDAQ:META) is in third position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 246 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the first quarter which was 242 in the previous quarter. Meta Platforms, Inc.’s (NASDAQ:META) trailing 12 months revenue is $142.71 billion and year over year quarterly revenue growth rate is 27.30%. While we acknowledge the potential of Meta Platforms, Inc. (NASDAQ:META) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Meta Platforms, Inc. (NASDAQ:META) and shared the top stock picks of billionaire Israel Englander for 2024. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.