PRIMECAP Management Co trims Meta Platforms stake significantly

PRIMECAP Management Co, managed by Theofanis Kolokotrones, recently executed a significant transaction involving Meta Platforms, Inc. ((META)). The hedge fund reduced its position by 222,050 shares.

Recent Updates on Meta Platforms, Inc. stock

Meta Platforms shares have seen choppy but generally positive momentum, with recent moves ranging from a modest pullback to double‑digit gains, while still posting only mid‑single‑digit returns over the past year. Wall Street remains strongly bullish, with StrongBuy consensus and average targets in the low‑ to mid‑$800s, implying sizable upside from current prices.

Recent quarterly results were a key catalyst, featuring 4Q revenue of $59.9B up about 23% and EPS of $8.88, both ahead of expectations, plus first‑quarter guidance that signals accelerating growth. Analysts argue Meta’s heavy AI and data‑center investments, including large nuclear‑power deals to secure up to 6.6 GW by 2035, are now viewed as de‑risked growth drivers rather than a drag on profitability.

Spark’s Take on META Stock

According to Spark, TipRanks’ AI Analyst, META is a Outperform.

The score is driven primarily by very strong profitability and cash generation, tempered by rising leverage and signs of moderating growth. Technicals remain supportive but look overbought, while valuation is somewhat expensive with a very low dividend yield. Earnings call takeaways were positive on ad and AI momentum, but the large planned 2026 expense/capex ramp and ongoing Reality Labs losses add execution risk.

To see Spark’s full report on META stock, click here.

More about Meta Platforms, Inc.

YTD Price Performance: 2.60%

Average Trading Volume: 17,285,336

Current Market Cap: $1696.6B