Meta Platforms is facing increased scrutiny as the Blue Whale Growth investment fund sold its entire stake due to fears of a global economic slowdown stemming from President Trumpâs tariff policies. Fund manager Stephen Yiu highlighted the vulnerability of Meta's digital advertising base amidst uncertainty. This divestment comes as the FTC continues its investigations into Meta, adding to the company's challenges. Interestingly, the fund has shifted its focus to buying shares in Nvidia, recognizing its strong position in AI investments, while also selling its stake in Microsoft due to concerns over its AI spending strategy.
Meta Platforms has been divested by Blue Whale Growth fund first due to fears of a global economic slowdown triggered by tariffs, impacting its digital advertising revenue.
Manager Stephen Yiu mentions, 'When you have a global business in digital advertising and a global slowdown and economic uncertainty, then it does impact revenues,' signifying the risk posed to Meta.
Despite the challenges facing Meta, there remains a Strong Buy consensus rating with a potential upside, suggesting some analysts still see long-term value in the stock.
Nvidia is positively viewed by Yiu for its strategic position in capturing AI spending, contrasting with concerns over Meta and Microsoft's financial strategies.
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