2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 219
Meta Platforms, Inc (NASDAQ:META)’s Facebook had more than 3 billion monthly active users. This demonstrates how firmly Meta Platforms, Inc. (NASDAQ:META) has established itself in the social media industry. Facebook is a major player in the online content market. According to Sprout Social, Instagram has over 2 billion monthly active users and is owned by Meta Platforms, Inc. (NASDAQ:META).
Advertisers are drawn to the platforms of large American IT companies because of their growing user base and engagement, as well as the valuable data they provide. The company’s top-line growth and cash flow should benefit from these valuable assets, and Morningstar analysts predict that advertisers will continue to spend more money online.
Through its Reality Labs branch, META is making significant investments in the metaverse, virtual reality, and augmented reality spaces. Nonetheless, the company has come under fire for paying large sums of money to these new customer channels.
Despite the company’s intention to reduce Reality Labs’ hardware spending by 20% by 2026, BofA Securities continues to maintain the $550 price objective. Considering the sustained high level of customer interest in AR glasses, a potential budget reduction is seen as a planned response to the diminishing market for VR products.
Meta Platforms Inc. (NASDAQ:META) reported a $13.5 billion profit in Q2 2024, above estimates and driving up the stock price by almost 7%. Revenue for the most recent quarter was $39 billion, a 22% rise YoY and above market estimates. The tech behemoth with headquarters in California is expected to earn between $38.5 billion and $41 billion in revenue in the third quarter.
Alger Focus Equity Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q1 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META) operates the world’s largest social network, with over 3 billion monthly active users across its platform. The company generates revenue predominantly from advertising. which accounts for over 95% of its total revenue, evenly split between North America and international markets. During the quarter, shares contributed to performance following the release of strong fiscal fourth quarter operating results, with revenues and earnings surpassing analyst estimates. The better-than- expected revenues were attributed to strong advertiser demand and Al-driven ad improvements. Moreover, the company materially raised its fiscal first quarter sales and earnings guidance above analysts’ estimates, buoyed by continued strong advertiser demand trends and enhancements to Reels. Advantage+. Click-to-message, and Shop Ads. Further, management noted that ongoing investment in Al is enhancing user engagement and advertiser returns through improved targeting and measurement. Separately, Meta authorized a new share repurchase plan representing approximately 5% of its market capitalization and announced the initiation of its first dividend, implying an approximate 0.4% yield.”
Simon Wang’s Franchise Capital is the only stakeholder in the company from among the funds in Insider Monkey’s database. It owns 33,091 shares worth $18.94 million as of Q2.
