10 Best Innovative Stocks to Invest in According to Hedge Funds

3. Meta Platforms Inc (NASDAQ:META)

Number of Hedge Fund Holders: 219

Meta Platforms Inc (NASDAQ:META) is a technology conglomerate behind Facebook, Instagram, Threads, and WhatsApp. The company has a large user base of over 3 billion daily active users across all its platforms.

Over the past few months, the company has ventured into AI and augmented reality, having launched its debut AR glasses, Orion, in September. On the same day, the company released its most affordable mixed-reality headset, Meta Quest 36. Meta Platforms Inc (NASDAQ:META) is striving to become one of the best recommendation technology companies and to reach that position META launched new features that allow users to explore their interests and like-minded people.

The company is expanding its position on AI and for good reason. On November 1, Brent Thill, Senior Analyst at Jefferies, appeared in an interview on Yahoo Finance to discuss his thesis on META and its AI spending. Thill emphasized the role of AI in showing appropriate content to users and personalizing commerce suggestions across all META platforms. He adds that for advertisers and small business owners, especially, AI spending by META has started to show results.

Meta Platforms Inc (NASDAQ:META) has a strong business model and its position as one of the innovative stocks is evidence of that. The company is pioneering ad tech using artificial intelligence, challenging for any other company to replicate.

Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q2 2024 investor letter:

“We are pleased to report that Meta Platforms, Inc. (NASDAQ:META), our largest position in the fund, has delivered a remarkable performance, +450% since our November 2022 note. Our investment in Meta dates back to 2018, with an average cost basis of approximately $172 per share. Today, the stock trades around $535, reflecting a 3x return over the six-year holding period, equating to a 20% annualized return.

We would like to remind you that achieving these types of returns is never a straight path. From time to time, we might experience volatility — that’s simply part of the investment journey. In fact, wealth creation and volatility go hand in hand. There’s no escaping it; it’s the “price of admission” the market demands. If you take a look at the chart below, you’ll notice the drawdowns META stock has faced over the years, with 2022 standing out as a particularly challenging period, where the stock saw a 75% drop….. ” (Click here to read the full text)