We're Buying Shares of Meta and 3 Other Holdings
We're being opportunistic but also improving the Portfolio’s dividend income stream.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
LH | Buy | 80 | 253 | 790 | 3.5 |
META | Buy | 28 | 679 | 311 | 3.7 |
SSSS | Buy | 3,115 | 9.30 | 22,115 | 3.6 |
WM | Buy | 120 | 200 | 1,000 | 3.5 |
After you receive this Alert, we will make the following trades:
-- Buy 80 shares of Labcorp (LH) at or near $253. Following the trade, the Portfolio will own 790 LH shares, roughly 3.5% of the Portfolio.
-- Buy 28 shares of Meta Platforms (META) at or near $679. Following the trade, the Portfolio will own 311 META shares, roughly 3.7% of the Portfolio.
-- Buy 3,115 shares of SuRo Capital (SSSS) at or near $9.30. Following the trade, the Portfolio will own 22,115 SSSS shares, roughly 3.6% of the Portfolio.
-- Buy 120 shares of Waste Management (WM) at or near $200. Following the trade, the Portfolio will own 1,000 WM shares, roughly 3.5% of the Portfolio.
Earlier today, we exited the Portfolio’s position in Vulcan Materials (VMC) with a hefty gain, a move that re-armed our cash position to more than 10.5%. That gives us some room to take advantage of recent pullbacks of companies that we’ve identified as on our shopping list. With that in mind, as we signaled earlier this week, we are scooping some additional shares of Labcorp and Waste Management, but also SuRo Capital, and, while we may be a tad early, Meta as well.
Why the SuRo Capital Add?
In recent days, the combination of SoftBank’s latest investment in OpenAI and OpenAI's reorganization itself put it on a path toward an eventual IPO. We are now seeing that OpenAI is preparing to file for an initial public offering as soon as next year, which could give the company a market capitalization of $1 trillion. That would be double the most recent valuation of $500 billion following its latest capital raise.
We’ve already discussed how that $500 billion valuation level will have a positive impact on SuRo’s net asset value in the current quarter vs. its initial Q3 2025 estimate, which was based on a $300 billion valuation for its stake in OpenAI. This confirmation of an eventual IPO means we should see another leg up in SuRo’s net asset value per share as well as the continuation of its dividend stream.
So far, the company has yet to announce its next dividend plan, but with SuRo reporting early next week, we are aiming to get ahead of that announcement. To be clear, we are not expecting a massive increase compared to its last $0.25 per share quarterly dividend. Instead, as it monetizes its remaining position in CoreWeave (CRWV) and GrabAGun (PEW), we suspect a special dividend before year-end is more likely.
As we keep the notion of total return in mind, those items are leading us to increase our position in this BDC company.
Why We’re Adding META Shares
Following the post-earnings selloff in Meta, which is coming on the heels of the company’s better-than-expected September quarter, but is due to a larger-than-expected opex increase in the coming quarters, we are adding to our position. We are seeing some price target jostling across Wall Street, some moving higher and others lower. Similar to other holdings, we are seeing more aggressive Wall Street targets converge toward our $850 one, and this is just fine with us.
In our view, that makes today’s pullback a nice buying opportunity, especially as the combination of Meta’s AI ranking system and video is leading to greater time spent on the company’s products. To keep it simple, the more time on its products, the more ads its users see, and the more advertising revenue Meta garners. But let’s also keep in mind the positive impact on ad pricing AI and video is having. During Q3 2025, Meta’s family of apps' ad revenue was $50.1 billion, up 26% while the total number of ad impressions served across our services increased 14%. To be clearer, in Q3 2025, the average price per ad rose 10% year over year compared to 9% in Q2 2025.
Are we thrilled with the year-over-year decline in Meta’s operating margin to 40% from 43% in the year-ago quarter and Q2 2025? Not really, but we also recognize these investments will help improve ad revenue prospects down the line. Not only is that important for Facebook and Instagram, but let’s remember also for the advertising opportunities on Threads and WhatsApp. Ads are now running globally on Threads and should improve as Meta follows its typical monetization playbook. Within WhatsApp status, Meta is continuing to gradually introduce ads and expects to complete the rollout next year.
Greater monetization across more platforms is a combination for higher revenue and eventually higher margins as opex levels return to more normalized levels. It also translates into higher EPS, and with that, we’ll keep our eye on the long-term prize and pick up some additional shares.
For now, our META target will remain at $850, but we’ll reset our panic point to $595 and our pick-up point to $660. Given the upside to our target, we’re also upgrading META shares to a One rating.
Where Does This Leave Us?
Following all of today’s trades, the Pro Portfolio’s cash level will be back to a healthy level, near 9%. That will give us a nice war chest as we move through the balance of the current earnings season to potentially pick up other names on our shopping list, such as Welltower (WELL) , Arista Networks (ANET) , United Rentals (URI) , and TJX Companies (TJX) , should the right opportunity present itself. It also gives us room for another piece of fresh meat for the Pro Portfolio.
While dividends are a key part of our play with SSSS shares, we’d remind you that Waste Management, Labcorp, and Meta are all dividend payers. The good news? Quarterly dividends paid by those three companies are higher than the $0.49 per share quarterly dividend paid by Vulcan. Add in SuRo’s BDC status, and we should see a nice bump up in the Portfolio’s dividend stream.
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long META, WM, SSSS, LH, WELL, ANET, URI, and TJX.
