Meta Jumps 14.2% On Earnings; 321 ETFs Affected

Meta Platforms has had a sharp upswing after a rough start to 2022.

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Reviewed by: Ben Kissam
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Edited by: Ben Kissam

Meta Platforms, Inc. (FB) jumped 18% in midday trading on Thursday after it reported better-than-expected first-quarter earnings per share of $2.72, slightly higher than the estimated $2.56 per share. 

A whopping 321 ETFs hold stakes in the company. The ETFs with the most exposure are mainly those targeting the communication services sector, with the Communication Services Select Sector SPDR ETF (XLC)  allocating 20.06% to the stock, followed by the more broadly based Fidelity MSCI Communication Services Index ETF (FCOM) and the Vanguard Communication Services ETF (VOX), with allocations of 13.75% and 12.71%, respectively.  

 

 

Of the 190.3 million FB shares held in ETFs, the top five holders account for 107.49 million of those shares, or roughly 56.4%. The ETFs with the most FB shares include large, broadly focused funds such as the Invesco QQQ Trust (QQQ), the SPDR S&P 500 ETF Trust (SPY) and the iShares Core S&P 500 ETF (IVV)

 

 

In the past 30 days (and prior to today’s spike), the top three ETFs holding Meta Platforms, Inc. shares that have enjoyed the greatest growth are the Direxion Daily Select Large Caps & FANGs Bull 2Xx Shares (FNGG) at 11.72%, the ProShares UltraPro QQQ (TQQQ) at 11.67% and the ProShares UltraPro S&P500 (UPRO) at 9.63%. 

 

 

Just under one-third of ETFs (96) holding FB shares are actively managed funds. Vanilla ETFs (53) and fundamental ETFs (35) sit in the second and third spots. Multifactor ETFs (32) and ESG ETFs (21) round out the list. 

Meta Hit Hard In 2022 

Down more than 40% since the start of the year, Meta is one of several former darling technology growth stocks that appears to be coming back down to earth in 2022. 

Bearish outlooks on the company cite limited expansion opportunities and ramping up privacy changes as cause for concern about future growth. Apple's privacy changes at the beginning of 2022 were likely one of the reasons for the sudden dip in Meta's share price. The company's sales rose 7% compared with last year's first-quarter earnings—the first time in Meta Platform, Inc.'s decade-long existence that it reported growth in the single digits. 

Still, Meta's first-quarter report says that Facebook increased its user base from 1.93 billion to 1.96 billion. 

Meta's CEO, Mark Zuckerberg, who is attempting to lead the charge into building the metaverse—a feat that reportedly cost $10 billion in 2021 alone—recently said the company will slow its spending in the rest of 2022 to reflect "our current business growth levels." 

Ben Kissam is a writer and media strategist. A former educator, he's written two books and had essays published in The Boston Globe and Thought Catalog. He lives in Denver.