Billionaires Are Selling Meta Stock and Buying This TSX Stock Instead

Billionaire trimming is a clue to re-check fundamentals and valuation, not an automatic sell signal.

Key Points
  • Meta still prints huge ad-driven profits, but its planned AI spending surge could pressure margins if growth slows.
  • Meta’s strong run leaves it trading at a full valuation, so some funds are locking in gains and reducing exposure.
  • QSR offers steadier royalty-style cash flows and brand-driven growth, though leverage and cost inflation remain key risks.

When a billionaire trims a position, it can feel like a fire alarm. Still, that move rarely gives you a clean buy-or-sell signal. Big funds rebalance for taxes, risk limits, redemptions, or a simple need to lock in gains. You can see the trade weeks later through filings.

Treat the headline like a clue, not a command. If you copy the move, you risk buying high or selling low, right when emotions spike. Check whether the business story changed, whether the valuation ran ahead of reality, and whether your own time horizon and stomach still fit. Which is why today we’re looking at why one stock is being sold, and another is being bought in bulk.

The Meta Platforms logo displayed on a smartphone

Source: Getty Images

Sale: Meta

Meta Platforms (NASDAQ: META) runs Facebook, Instagram, WhatsApp, and a growing ad machine. It sits at the centre of digital attention, and it turns that attention into cash. In its fourth quarter of 2025, it posted revenue of US$59.9 billion and net income of US$22.8 billion. It also reported earnings per share (EPS) of US$8.88. Advertising still pays the bills, and it keeps scaling.

The worry sits in the spending line. Meta stock lifted costs and expenses 40% year over year in that quarter, and it signalled much higher investment for 2026 as it takes part in the artificial intelligence (AI) race. Management pointed to a capex surge after US$72.2 billion in 2025 capex, and it guided for as much as US$115 billion to US$135 billion in 2026 capex. That plan can work, but it puts pressure on margins if ad growth cools.

‘The valuation looks high after a big run. Meta trades around 30 times trailing earnings at writing, and the market prices in years of strong ad pricing plus AI wins. That mix can go right, but it leaves less room for mistakes. Some billionaire investors have started to trim exposure. Chase Coleman runs Tiger Global Management, and it cut its Meta stake by about 63% in the third quarter of 2025. That kind of trim does not mean Meta stock broke, but it does show that even high-conviction funds take chips off the table.

Buy: QSR

Restaurant Brands International (TSX: QSR) offers a very different vibe. It collects royalties from brands like Tim Hortons, Burger King, Popeyes, and Firehouse Subs. The model leans on franchise partners, so it can grow without building every restaurant itself. That structure can hold up when consumers feel squeezed, because it sells small treats and quick meals.

In its third quarter of 2025, Restaurant Brands grew system-wide sales 6.9% year over year and comparable sales 4%. It posted total revenue of US$2.5 billion and adjusted diluted EPS of US$1.03. Tim Hortons and the international segment drove much of the momentum, and management said it stayed on track for at least 8% organic adjusted operating income growth in 2025. It also kept net leverage around 4.4 times, so it did not lose control of the balance sheet.

The next catalyst sits close. Restaurant Brands plans to report full-year 2025 results on Feb. 12, 2026, so investors will soon see how holiday traffic and pricing landed. The longer arc looks steady rather than flashy. Management still targets 3% or more comparable sales and 8% or more organic adjusted operating income growth on average from 2024 to 2028. The stock also trades at 24 times earnings at writing, which looks fair if it hits that algorithm. However, it can sting if inflation, wage pressure, or weak traffic squeezes franchisee economics and slows new store openings.

Bottom line

So why would a billionaire stick with QSR while trimming Meta stock? Bill Ackman’s Pershing Square Capital Management has kept QSR as a core holding, and that lines up with the thesis. QSR offers recurring royalties, brand strength in Canada, and a growth runway abroad, with less headline risk than a social platform. It still carries risks, like high leverage, food and labour inflation, as well as brand missteps, so it will not suit every portfolio. Start small, stay patient, and let results, not billionaire gossip, make the call.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Meta Platforms and Restaurant Brands International. The Motley Fool has a disclosure policy.

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