3 Stocks Dan Loeb-Founded Third Point Was Buying Big in Q2

In the second quarter, exiting big tech names like Meta Platforms (META) and chip giants Nvidia (NVDA) and Broadcom (AVGO), Third Point’s Daniel Loeb has taken new positions in Space Exploration Technologies (SPCX), Warner Bros. Discovery (WBD), and TTM Technologies (TTMI). This move from event-driven investing suggests a broader shift away from industry-leading names toward stocks that may be on the verge of a surge. 

Dan Leob Stock #1: Space Exploration Technologies (SPCX)

SpaceX, headquartered in Hawthorne, California, designs, builds, and launches advanced rockets and spacecraft, operating Falcon 9, Falcon Heavy, and Dragon missions while developing Starship for deep-space travel. 

It runs the Starlink satellite broadband network, provides crewed and cargo flights to the International Space Station, and expands AI operations for autonomous flight, guidance, and satellite network management. The company has a market capitalization of $1.84 trillion.

Investors have been lauding SpaceX’s post-IPO earnings, with the topline nearly doubling from the prior-year period. Over the past month, SPCX stock has gained 10%. However, the stock is down 3% over the past five days due to selling pressure from ongoing post-IPO lockup expirations. It had reached a one-month high of $149.80 on Aug. 17 but is down 9% from that level.

Despite the company’s explosive rise, it makes up less than 1% of Loeb’s portfolio. That might have something to do with its stretched valuation. On a forward-adjusted basis, SPCX’s price-to-sales (P/S) ratio of 97.79x is significantly higher than the industry average of 2x. 

Investors have lauded the company’s first earnings as a public entity. In the second quarter, SpaceX’s revenue increased 91.9% year-over-year (YoY) to $7.81 billion. This was mainly driven by the connectivity segment, which generated $4.29 billion in revenue, up 65.8% YoY, fueled by strong Starlink subscriber growth.

For the current fiscal year, the company’s loss per share is projected to reach $0.15, followed by a considerable improvement to an EPS of $1.62 in the next fiscal year. For the current quarter, SpaceX is projected to earn $0.09 EPS. 

SPCX has gained significant Wall Street attention, with analysts awarding it a consensus “Moderate Buy” rating. Of the 34 analysts rating the stock, 23 have given it a “Strong Buy,” two a “Moderate Buy,” seven a “Hold,” one a “Moderate Sell,” and one a “Strong Sell.” The consensus price target of $221.06 represents a 63% upside from current levels. The Street-high price target of $800 indicates a 488% upside.

Dan Leob Stock #2: Warner Bros. Discovery (WBD)

Popular entertainment company Warner Bros., headquartered in Burbank, California, is accelerating film production and expanding HBO Max worldwide as streaming continues growing. 

The studio is increasing its theatrical slate over the next two years while advancing its pending merger with Paramount Skydance, aiming to strengthen content output and global distribution across film, television, and digital platforms. It has a market capitalization of $71.53 billion.

Optimism around the merger, along with growth in its streaming division despite declining legacy TV advertising revenues, has driven a surge in Warner Bros.’ stock. Over the past 52 weeks, WDB stock has gained 146%. 

However, an antitrust probe surrounding the merger, which has created uncertainty around the mega-deal, has caused the stock to drop marginally this year, essentially tapering its trajectory. It reached a 52-week high of $30 back in December 2025 but is down 5% from that level.

WBD is now Third Point's largest holding as of the end of the second quarter, with $533 million worth of the stock purchased. On a forward-adjusted basis, its P/S ratio of 1.86x is slightly lower than the industry average of 2.24x.

While WBD’s distribution revenues increased 1% YoY to $4.95 billion in the second quarter, as global streaming subscribers increased. However, total revenue fell 11% to $8.72 billion as advertising and content revenue declined. Its net income also declined by 91% YoY to $149 million. 

Wall Street analysts have a mixed view on WBD’s earnings trajectory. It is expected to report an annual loss per share of $1.11 in the current year, a huge drop from the prior-year period’s EPS. However, this is expected to be followed by a 115.3% improvement to EPS of $0.17 next year.

Wall Street analysts are taking a cautious stance on WBD stock now, with a consensus “Hold” rating overall. Of the 22 analysts rating the stock, four gave a “Strong Buy” rating, one suggested “Moderate Buy,” 15 are playing it safe with a “Hold” rating, and two gave a “Strong Sell” rating. The consensus price target of $28.77 is roughly flat compared to current levels. However, the Street-high price target of $31.25 indicates a 9.5% upside from current levels.

Dan Leob Stock #3: TTM Technologies (TTMI)

TTM Technologies, headquartered in Santa Ana, California, is a leading global manufacturer of printed circuit boards and aerospace and defense electronics. It supplies advanced interconnect solutions for aerospace, defense, networking, and automotive markets. The company has a market capitalization of $12.26 billion. 

Driven by explosive demand in data center and networking markets tied to AI infrastructure, TTM’s stock has gained 173% over the past 52 weeks. Moreover, aerospace and defense sales also grew, driven by rising global defense spending. This year, TTMI stock is up 61%. The company’s shares reached a 52-week high of $223.83 on June 22 but are down 50% from that level as post-earnings profit-taking took place amid a broader semiconductor and AI‑linked selloff.

Loeb opened a position worth $94.4 million in TTM Technologies in the second quarter. The stock currently trades at a reasonable valuation compared to its peers. On a forward-adjusted basis, its price-to-earnings (non-GAAP) ratio of 24x is slightly higher than the industry average of 23.15x.

In the second quarter, TTMI’s net sales increased 37% YoY to an all-time quarterly record of $1 billion, as ongoing robust demand in the Data Center and Networking end market increased 91%. This end market accounted for 40% of total net sales. Non-GAAP net income reached $106.90 million, or $0.99 per diluted share, marking the company’s highest quarterly result.

Wall Street analysts are robustly optimistic about TTMI’s future earnings. For the current fiscal year, EPS is projected to surge 102.9% annually to $4.26, followed by a 48.8% growth to $6.34 in the next fiscal year. Moreover, analysts expect the company’s EPS to grow by 91.4% YoY to $1.11 for the current quarter. 

TTMI has become a popular name on Wall Street, with analysts awarding it a consensus “Strong Buy” rating overall. Of the six analysts covering the stock, five rate it a “Strong Buy,” while one analyst rates it a “Moderate Buy.” The consensus price target of $211 represents an 89% upside from current levels. Moreover, the Street-high price target of $250 indicates a 124% upside.