10 Best NASDAQ Stocks To Invest In Right Now

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 219

Meta Platforms, Inc. (NASDAQ:META) is an American multinational company headquartered in Menlo Park, California. It formerly operated as Facebook, Inc. until its rebranding in 2021. It is one of the largest technology companies in the world and owns popular social media platforms such as Facebook, Instagram, Threads, and WhatsApp. More than 3.2 billion people use at least one of Meta’s apps every day, according to CEO Mark Zuckerberg.

The company posted robust financial results during the second quarter of fiscal year 2024, with total revenue reaching $39.1 billion, representing a 22% year-over-year increase. Net income for the quarter was $13.5 billion, with an earnings per share of $5.16, comfortably beating analysts’ estimates of $4.72. Revenue from Meta Platforms, Inc. (NASDAQ:META)’s Family of Apps totaled $38.7 billion in Q2, up 22% from last year. Most of this was ad revenue, with the online commercial vertical being the largest contributor, followed by gaming.

Meta Platforms, Inc. (NASDAQ:META)’s ability to generate solid ad revenue despite global economic challenges has been the catalyst behind the company’s growth and has boosted investor confidence. Its share price has grown 58% year-to-date, with analysts predicting a further 1-2% increase in the coming months. There’s a consensus among Street experts on the stock’s Strong Buy rating.

Moreover, the company has spent billions in recent years on artificial intelligence, resulting in the launch of successful products like Meta Quest 3 and Ray-Ban Meta Glasses, whose demand has outpaced the company’s expectations. These investments in advanced technology have led to a general bullish sentiment about the stock’s long-term trajectory. According to Insider Monkey’s database as of Q2 2024, 219 hedge funds have a stake in the company, making it one of the best NASDAQ stocks to invest in right now.

Having said that, while Meta Platforms, Inc. (NASDAQ:META) looks set for long-term growth, some challenges on the horizon could impact the stock in the short term. One of them is the slowdown in revenue the company has anticipated for Q3 2024 compared to last year when much of the revenue was driven by a surge of China-based advertisers on its social media apps and the growth experienced by Reels impressions. That is unlikely to happen this year. Furthermore, the company plans on spending around $40 billion on capital expenditure this year, which could impact its short-term financials, and subsequently, its share price.