Third Point pivots to SpaceX, Warner Bros. Discovery, and TTM Technologies
Dan Loeb’s hedge fund has shifted away from big tech giants like Meta and Nvidia, opening new stakes in aerospace, media, and electronics firms.
In the second quarter, Dan Loeb’s hedge fund Third Point restructured its portfolio by exiting positions in Meta Platforms, Nvidia, and Broadcom. The fund moved its capital into Space Exploration Technologies (SpaceX), Warner Bros. Discovery, and TTM Technologies, a shift that suggests a strategic pivot away from established industry leaders towards companies potentially on the verge of significant growth.
Warner Bros. Discovery has emerged as the fund’s largest holding following a $533 million purchase of the Burbank-based media company’s stock. The investment comes as the studio advances its pending merger with Paramount Skydance and expands its HBO Max streaming platform globally. Despite a 146% gain over the past 52 weeks, the stock has faced some headwinds this year due to an antitrust probe surrounding the merger, which has introduced uncertainty into the deal.
Third Point also opened a $94.4 million position in TTM Technologies, a Santa Ana-based manufacturer of printed circuit boards and aerospace electronics. The company reported record quarterly net sales of $1 billion in the second quarter, a 37% year-over-year increase driven by robust demand in data centre and networking markets. This surge in sales, which accounted for 40% of total net sales, has propelled the stock up 61% this year, although it has since pulled back from its June high amid broader semiconductor profit-taking.
The fund’s interest in SpaceX, which recently listed on the public market, represents a smaller stake, comprising less than 1% of Loeb’s portfolio. The Hawthorne-based aerospace giant reported a 91.9% year-over-year revenue increase to $7.81 billion, largely fuelled by strong growth in its Starlink satellite broadband network. While the stock has gained 10% over the past month, it has experienced selling pressure due to post-IPO lockup expirations, trading down 9% from its recent one-month high.
Analysts have responded to these developments with varying degrees of optimism. TTM Technologies holds a consensus “Strong Buy” rating, with a consensus price target of $211 representing an 89% upside from current levels. SpaceX has received a “Moderate Buy” consensus, while Warner Bros. Discovery carries a “Hold” rating, reflecting the mixed outlook on its earnings trajectory and the complexities of its ongoing merger.
