Which funds are exposed to the Meta tumble?
The $14.2 billion Magellan Global fund is among more than 40 funds exposed to Meta, which saw its worst one-day loss since listing in 2012 at the end of last week.
According to FE Analytics, there were more than 40 funds within the Australian Core Strategies universe which held exposure to Meta (formerly known as Facebook).
As well as the Magellan Global which had 3.9% invested in Meta, other funds included VanEck MSCI World ex Australia Quality ETF which had 4.6% , BetaShares Nasdaq 100 ETF which had 4% and Antipodes Global Long Only which had 3%.
Meta had lost 33.7% over the past six months and it saw a dramatic 26% one-day loss on 3 February which caused a $332 billion for the company.
This was the worst one-day loss for the company since its listing in 2012.
The reason for the share price plunge was a revenue forecast which was well below analyst expectations as well as a decline in profits due to an increase in expenses.
However, the fall could be viewed as an attractive buying opportunity for investors seeking exposure to the pricey technology stock.
Kanish Chugh, head of distribution at ETF Securities, said: “The record-breaking fall overnight in the value of Meta, owner of Facebook, Instagram and other apps, could present a buying opportunity for investors who believe in the stock.
“It’s worth observing that Facebook has a history of successfully pivoting when faced with a major competitor and has done this well via acquisitions. The acquisition on Instagram is a prime example, as it now contributes more than a quarter of Facebook’s ad revenue.
“The recent development of Instagram Reels in a response to TikTok is one that is yet to be effectively monetised but one that arguably has significant upside potential.”
AUTHOR
Laura Dew
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