10 Debt Free Halal Stocks to Invest in Right Now

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

Number of Hedge Fund Holders: 262 

Market Cap as of March 27: $1.548 trillion 

Enterprise Value as of March 27: $1.52 trillion 

Meta Platforms, Inc. (NASDAQ:META) develops technological products that enable users to share information, build businesses, and create community bonds. These products facilitate human connection through wearable technology, integrating features from virtual reality (VR) and mixed reality (MR) headsets, mobile devices, and personal computers. The company generates most of its revenue through its advertising division. Research from December indicates that Instagram will account for approximately 50% of the company’s U.S. advertising revenue by 2025.

The Family of Apps generated $47.3 billion in revenue during fiscal Q4 2024, reflecting a 21% growth compared to the previous year. Reported and constant currency ad revenue from the Family of Apps also grew by 21%, reaching $46.8 billion in the last quarter. The prices Meta Platforms, Inc. (NASDAQ:META) charged per ad during fiscal Q4 2024 increased by 14%, while ad impression deliveries across its services expanded by 6%.

The company’s increased monetization efficiency contributes to improved revenue performance. The company achieves this by adjusting organic advertisement density levels and strategically placing ads across all media to reach consumers precisely when and where content is most relevant.

The business enhances both marketing performance and monetization efficiency simultaneously. The company continuously advances its advertising ranking structures, which serve as the primary driver of these improvements. Barclays analyst Ross Sandler maintained his positive recommendation for the business, setting a price target of $705.00 on March 21.

Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2024 investor letter:

“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on 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-year 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)