10 Best Reddit Stocks To Buy Right Now

3. Meta Platforms Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 219

Meta Platforms Inc. (NASDAQ:META), formerly known as Facebook, is a tech company that connects people around the world. It owns popular social media platforms like Facebook, Instagram, and WhatsApp, where people share photos, videos, and messages. It’s also building the future of social connection through virtual and augmented reality.

In Q3 2024, the company recorded strong growth in its core apps, with over 3.2 billion people using at least one of its services daily. It made a revenue of $40.59 billion in Q3 2024, up 18.87% year-over-year. Meta Platforms Inc. (NASDAQ:META) has been leveraging AI to make improvements to its overall business segments.

Meta AI’s AI-driven feed and video recommendations have led to an 8% increase in time spent on Facebook and a 6% increase on Instagram. GenAI tools have empowered over a million advertisers to create over 15 million ads, with businesses experiencing a 7% boost in conversions. Llama, the AI language model, has seen exponential growth in token usage and has been adopted widely across the industry. It recently released Llama 3.2, and Llama 4 is currently under development on a massive scale.

Meta Platforms Inc.’s (NASDAQ:META) strategic investments in AI position the company for long-term growth and profitability. Despite short-term concerns about increased spending, its strong user base, innovative products, and clear monetization strategy make it a compelling investment opportunity.

Baron Opportunity Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q3 2024 investor letter:

“Shares of Meta Platforms, Inc. (NASDAQ:META), the world’s largest social network, were up this quarter, due to impressive top-line growth of 22% year-over-year and solid forward guidance. Despite its large scale, Meta continues to outgrow the broader digital advertising industry, with better AI-driven content recommendations increasing engagement in products like Instagram Reels, and AI improving ad targeting and conversion rates. Our industry checks have continued to validate advertiser adoption and satisfaction, with improvements in Reels monetization, as well as strong adoption of Advantage+, Meta’s AI-driven service to allocate advertiser budgets across its content surfaces.

Meta continues to innovate in Gen AI, with a leading AI research lab and the best open-source models to date. We believe CEO Mark Zuckerberg’s open-source approach will encourage a broader developer ecosystem and standardization based on Meta, which will be beneficial for the company even if Meta doesn’t directly monetize model usage over the near term. In a blog this summer, titled “Open Source AI Is the Path Forward,” Zuckerberg laid out his case:…” (Click here to read the full text)