Key Points
Daniel Loeb’s Third Point Management expanded its holdings in Microsoft (NASDAQ: MSFT) and Meta Platforms (NASDAQ: META) during the third quarter of 2023, indicating significant investor confidence. The hedge fund added 700,000 shares of Microsoft, nearly tripling its position, and increasing its stake in Meta as well, despite the latter’s stock declining by about 10% since its Q3 earnings report on September 30.
Third Point’s investment in Microsoft reflects its strong market position, particularly in artificial intelligence, with projected revenue growth around 16% for fiscal year 2026. Meanwhile, Meta’s revenue grew 26% year over year, positioning it attractively at a forward price-to-earnings ratio of 22, which is comparable to the S&P 500’s ratio of 22.3.
