10 Best Stocks To Buy Right Now According To Billionaire Cliff Asness

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

Number of Hedge Fund Holders In Q2 2024: 219

AQR Funds’ Latest Investment Stake: $811 million

Meta Platforms, Inc. (NASDAQ:META) is the parent company of Facebook, Instagram, and WhatsApp. With more than 3.2 billion people using its platform as of March 2024, the firm enjoys a considerable presence in the social media industry. This is key for Meta Platforms, Inc. (NASDAQ:META), as it enables it to ensure that advertisers are eager to run their ads on its platform. Ad revenue is one of the biggest revenue streams for the firm, and it has grown in importance as of late due to Meta Platforms, Inc. (NASDAQ:META)’s aggressive AI investments. Key drivers for its share price include revenue per user, the ability to monetize AI, and maintain or grow its user base. Meta Platforms, Inc. (NASDAQ:META) is also using AI to enable advertisers to autonomously create campaigns and general users to make use of AI through AI Studio. Additionally, Meta Platforms, Inc. (NASDAQ:META)’s forward price to earnings ratio of 22.32 means that the share growth might be rapid.

Since monetizing AI is one of the keys to Meta Platforms, Inc. (NASDAQ:META)’s hypothesis, here’s what Evercore’s Mark Mahaney had to say during a recent talk with CNBC:

“If you look at what happened with Meta Platforms Inc (NASDAQ:META). they went to almost 30% revenue growth, they are growing dollar-wise faster than anybody else that’s because they used AI to rebuild their ad-tech stack because they used AI to rebuild their user interface and get us more engaged, so it actually worked for them.”