10 Best Long Term Tech Stocks to Buy Right Now

3) Meta Platforms, Inc. (NASDAQ:META)

10-Year Revenue Growth: ~29.4%

Number of Hedge Fund Holders: 262

Meta Platforms, Inc. (NASDAQ:META) is building technology that helps people connect and share, find and build communities, and grow businesses.  Benchmark analyst Mark Zgutowicz upgraded the company’s stock to “Buy” from “Hold,” providing a price objective of $820, lauding a strong 2025 core business outlook. As per the analyst, Meta Platforms, Inc. (NASDAQ:META)’s AI infrastructure investments and core ad strength provide several growth catalysts for 2025 and beyond. Elsewhere, Morningstar expects the company’s sales to grow at a CAGR of 12% for the upcoming 5 years, courtesy of an increase in average revenue per user, and higher user growth.

The firm expects Reality Labs sales to increase at a double-digit rate over the upcoming 5 years. Meta Platforms, Inc. (NASDAQ:META)’s core advertising business continues to benefit from improved ad targeting and content recommendation algorithms and a secular increase in digital advertising spending. Thanks to the company’s scale, it can access high-quality user data, which it can package and sell to advertisers. Meta Platforms, Inc. (NASDAQ:META) has an opportunity to fuel more ad inventory growth, through new products including Threads while, at the same time, enhancing its ads monetization on more nascent features like Stories and Reels.

Rowan Street Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on an investment, accounting for the timing and magnitude of cash flows over the holding period.

For META, our 22% IRR aligns closely with the company’s compounded growth in earnings per share (EPS) and free cash flow per share during the 6 years holding period.

Looking ahead, Meta is expected to grow its revenues, earnings, and free cash flow per share at mid-teens rates over the next two years. There’s a good possibility that it could exceed these estimates, considering the breadth of growth initiatives currently in place, such as advancements in Al, monetization of Reels, expansion into business messaging, and the ongoing development of the metaverse…” (Click here to read the full text)