Billionaire Investor Dan Loeb Boosts Stake In Mark Zuckerberg's Meta, Elon Musk's Tesla, But Sold These Three Mag 7 Stocks In Q4

In the final quarter of 2024, billionaire investor Dan Loeb, CEO of Third Point, made some significant moves in his portfolio, increasing his stakes in Mark Zuckerberg's Meta Platforms (META) and Elon Musk's Tesla (TSLA), while trimming or selling his positions in three other Mag 7 stocks. Let's dive into the details of these strategic decisions and explore the potential impact on the broader market and investor sentiment.

Loeb bolstered his stake in Meta by 22%, totaling over $70.4 million, elevating the total investment to more than $389 million. This move positioned Meta as the fourth largest holding in Third Point's portfolio and the only one among the top five to experience net buying during the quarter. This marks a significant turnaround for Loeb, who had previously slashed his Meta holding by over 50% in the third quarter of 2024. Meta concluded the fourth quarter with a slight increase of over 2%, marking its eighth consecutive winning quarter, and has soared nearly 23% so far this year.



Loeb's increased investment in Meta suggests that he believes the company's growth prospects, particularly in the advertising market recovery and its foray into generative AI, make it an attractive investment. Meta's strong performance and potential for future growth could drive up investor sentiment towards the company, potentially leading to increased interest and higher stock prices.

Loeb also made one of his larger new purchases in the third quarter, adding to his stake in Tesla by 25%. Since taking the stake at an average buy price of $261.63 per share, the billionaire is already enjoying gains of 50% as the electric vehicle manufacturer's stock surged following the presidential elections. Tesla's recent financial performance, with revenue up 8% and profits surging 17% in the third quarter of 2024, might have also caught Loeb's eye. Additionally, Tesla's leadership in the EV market, advancements in battery technology, autonomous driving, and energy solutions, as well as its potential to capture a broader market segment with a new, more affordable EV, make it an attractive investment for Loeb.



On the other hand, Loeb trimmed his stake in Microsoft (MSFT) by 31%, Amazon (AMZN) by nearly 7%, and sold his entire stake in Apple (AAPL). While these companies are still part of the Magnificent Seven and have carried the market for the past two years, Loeb's decision to reduce or sell his holdings in these companies suggests that he believes their growth prospects may not be as attractive as those of other investments, such as Flutter, Meta, and Tesla.

Loeb's actions could have a mixed impact on the broader market and investor sentiment towards these companies. His increased stakes in Meta and Tesla could boost investor confidence in these companies, potentially driving up their stock prices and market capitalizations. However, his trimming of positions in Microsoft and Amazon could lead to a decrease in investor sentiment towards these companies. Nevertheless, the overall impact on the market and investor sentiment will depend on various factors, including the companies' financial performance, market conditions, and other macroeconomic factors.

In conclusion, Dan Loeb's investment decisions in the fourth quarter of 2024 were influenced by the recent performance and growth prospects of the companies he invested in or divested from. His increased stakes in Meta and Tesla, as well as his trimming of positions in Microsoft and Amazon, could have a mixed impact on the broader market and investor sentiment towards these companies. While his actions could boost investor confidence in Meta and Tesla, they could also lead to a decrease in investor sentiment towards Microsoft and Amazon. The overall impact on the market and investor sentiment will depend on various factors, including the companies' financial performance, market conditions, and other macroeconomic factors.