10 Best Stocks to Invest in According to Billionaire Cliff Asness

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

AQR Capital Management’s stake as of Q3: $855.1 million

Meta Platforms, Inc. (NASDAQ:META) is a leading technology company known for its flagship platforms—Facebook, Instagram, and WhatsApp—alongside its innovative advancements in augmented reality (AR) and virtual reality (VR) technologies.

AI-powered enhancements to Meta’s algorithms and user experience continue to boost ad income for the social media giant. Over 500 million people use the company’s platforms each month, demonstrating the widespread adoption of its Llama AI approach. These developments put Meta Platforms, Inc. (NASDAQ:META) in a strong position to increase its profitability over the next two years as it expands its AI infrastructure.

On January 1, Wolfe Research reaffirmed its positive outlook on Meta, maintaining an Outperform rating and a $730 price target. Analysts at Wolfe Research believe the market has yet to fully recognize the financial potential of Meta’s initiatives in video unification and Threads monetization. They project Meta’s 2025 EPS to surpass consensus estimates by 5.5%. In addition, Wolfe projects that Threads may make between $3 and $4 billion by 2026, with room for growth in the years to follow.

Hardman Johnston Global Equity stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q3 2024 investor letter:

“During the quarter, we initiated one new position in Meta Platforms, Inc. (NASDAQ:META) and had no liquidations. Management at Meta has effectively addressed concerns about investment efficiency by shifting resources from Reality Labs towards broader AI initiatives with a clearer path to profitability. We believe management has successfully articulated the benefits of this strategy, highlighting how AI is driving user engagement and advertiser productivity. This, in turn, fuels continued revenue momentum and increases the likelihood of positive earnings surprises in the future. Additionally, the parent company of the social media platform, Facebook, has recently taken positive steps to enhance safety, which suggests to us a shift towards a more proactive and responsive approach to addressing important potential challenges and concerns. Weak oversight over data privacy protection was a key reason why we sold the position in the portfolio back in 2021. Removing this governance overhang allows us to feel comfortable to enter back into the stock at a time when we believe it is poised for strong earnings growth going forward.”