Meta stock's $434 billion metamorphosis into a top S&P 500 performer this year didn't surprise everyone. Some investors' giant buys of the stock proved well timed.
By rocketing 143% this year, Meta stock added $434 billion in shareholder wealth in just six months. That puts it back as the eighth-most valuable stock in the S&P 500.
That's been a massive windfall for the largest investors. Just the top 10 holders of Meta stock gained nearly $200 billion this year. Founder Mark Zuckerberg alone gained more than $60 billion this year on the stock. He owns more than 347 million shares of the company, amounting to a 13.6% stake — larger than anyone else's.
But other investors showed good timing to buy up additional shares ahead of the company's successful launch of Twitter rival, Threads. Six investors, including JP Morgan Asset Management, T. Rowe Price and Arrowstreet Capital, each piled on more than 4 million additional shares of Meta Platforms as of the March 31 reporting date, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
"Although we don't forecast revenue from Threads over the next 18 to 24 months, we think Meta will find success penetrating the new category, as it leverages nearly 2 billion active users on Instagram (vs. about 250 million on Twitter)," said CFRA analyst Angelo Zino.
Biggest Meta Stock Investors Hit It Big This Year
| Holder | % of shares outstanding | Gain this year ($ billions) |
|---|---|---|
| Mark Elliot Zuckerberg | 13.5 | $60.7 |
| Vanguard Group | 7.0 | 31.6 |
| BlackRock | 5.9 | 26.7 |
| FMR (Fidelity) | 4.5 | 20.5 |
| Capital Research and Management | 4.0 | 18.2 |
| State Street Global Advisors | 3.3 | 15.2 |
| T. Rowe Price Group | 1.7 | 7.7 |
| Geode Capital Management | 1.7 | 7.7 |
| Norges Bank Investment Management | 1.3 | 6.1 |
| JP Morgan Asset Management | 0.9 | 4.4 |
Source: S&P Global Market Intelligence
Meta's Amazing Metamorphosis
Talk about good timing — and a fast turnaround. Meta's market cap gain in the past six months is the sixth highest among S&P 500 stocks in 2023 so far. But what makes the move the most powerful is that shares had been left for dead last year. Meta stock plunged more than 64% last year, knocking it out of the ranks of the top 10 most valuable S&P 500 companies.
Meta stock is back now, though. It's valued at $750.5 billion, ranking it over S&P 500 peers like Visa and Eli Lilly.
Why the mega interest in Meta? The company is slowly backing away from its ill-fated metaverse spending. Consumers just aren't rushing to buy virtual reality goggles. And its success with Threads shows it's doubling down on it roots that made Meta so successful: social media. Consumers can't seem to get enough of that.
Investors Adding To Meta Stock
Meta stock's biggest holders understandably scored the most. But a few other smaller investors wisely jumped on opportunity during the year.
JP Morgan Asset Management loaded up more than anyone else. The asset manager added 11.4 million shares, marking an 82% increase in positions as of March 31. Seeing such a big more is noteworthy as it's already holding 1% of the shares outstanding.
T. Rowe Price is a larger Meta stockholder with 1.7% of the outstanding stock. Even so, it picked up another 6.6 million shares, a 17% increase, as of the March reporting period.
Good luck is certainly appreciated with investing. But good timing is even better.
Biggest Buyers Of Meta Stock
| Holder | Change in shares | % change | Position Date |
|---|---|---|---|
| JP Morgan Asset Management | 11,427,620 | 82.0 | Mar-31-2023 |
| T. Rowe Price Group | 6,618,943 | 17.74 | Mar-31-2023 |
| Teachers Insurance and Annuity Association-College Retirement Equities Fund | 5,520,131 | 49.17 | Mar-31-2023 |
| Arrowstreet Capital, Limited Partnership | 5,036,812 | 246.77 | Mar-31-2023 |
| Wellington Management Group | 4,833,063 | 26.2 | Mar-31-2023 |
Sources: S&P Global Market Intelligence, IBD
Follow Matt Krantz on Twitter @mattkrantz
