Norges Bank Investment Management (NBIM), which oversees Norway’s sovereign wealth fund, has expanded its investment in Meta (NASDAQ:META) Platforms (NASDAQ: META). The fund acquired an additional 3,610,287 shares, raising its total holdings to 34,072,026 shares, according to its latest 13-F filing. This move strengthens NBIM’s position among the largest institutional investors in Meta, reflecting its confidence in the company’s financial outlook. The decision comes as the technology sector continues to attract institutional capital, despite ongoing market fluctuations.
NBIM’s investment in Meta has grown steadily over recent years, aligning with its broader strategy of targeting major technology companies. While the fund has previously adjusted its portfolio in response to market conditions, its increasing stake in Meta highlights its long-term interest in the social media and technology sectors. In contrast, some institutional investors have reduced their holdings in the company, signaling mixed sentiment in the market.
Why is NBIM Investing More in Meta?
The fund’s decision to increase its stake in Meta follows the company’s strong financial results for 2024. Meta reported a revenue of $48.385 billion for the fourth quarter, marking a 21% year-over-year increase. Earnings per share (EPS) reached $8.02, surpassing market expectations. These figures indicate that Meta continues to generate strong advertising revenue and maintain high user engagement across its platforms.
How Does NBIM Compare to Other Investors?
Despite its significant investment, NBIM remains behind other major shareholders. Mark Zuckerberg, Meta’s CEO, holds the largest portion of the company’s shares, with 342,606,985 shares (13.52%). The Vanguard Group follows with 191,198,005 shares (7.55%). Institutional investors collectively own 67.49% of Meta’s shares, with sovereign wealth funds like NBIM contributing a smaller but notable share at 2.16%.
NBIM’s purchase coincides with a broader trend of institutional investors either increasing or trimming their stakes in Meta. While BlackRock and Northern Trust Global Investments expanded their holdings, firms like FMR LLC and Capital Research and Management Company reduced their positions. This divergence suggests that while some investors see continued growth potential, others are taking a more cautious approach.
Market analysts maintain a generally positive outlook for Meta. Capital IQ consensus estimates place the company’s target stock price at $765.07, indicating a 25.9% potential increase. However, projections vary, with some estimates as high as $935.00 and others as low as $505.00. A significant majority of analysts rate Meta as a “Buy” or “Outperform,” though a few suggest a more neutral stance.
NBIM’s increased stake in Meta reflects a broader trend among institutional investors focusing on large technology firms. However, while Meta’s financial performance remains strong, investor sentiment varies, with some choosing to reduce exposure. The stock’s future trajectory will depend on the company’s ability to sustain revenue growth, manage costs, and respond to evolving market conditions. Investors will likely monitor Meta’s advertising business, regulatory challenges, and competition in artificial intelligence and virtual reality as key factors influencing its stock price.
