10 Most Owned Stocks by Hedge Funds Right Now

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

Number of Hedge Fund Holders: 219

Meta Platforms, Inc. (NASDAQ:META) is one of the largest technology companies in the world. It operates several popular social media platforms, including Facebook, WhatsApp, Instagram, and Threads. An estimated 3.2 billion people use one of META’s applications every day.

The company’s ability to generate handsome advertisement revenue despite the global economic slowdown has been one of the primary drivers behind its growth. It had another impressive quarter during Q2 2024, in which revenue expanded 22% year-over-year to reach $39.1 billion. Meta’s Family of Apps generated $38.1 billion of the overall revenue, fueled by strong performances in online commercial verticals and gaming. Earnings for the quarter were posted at $13.5 billion, or $5.16 per share, beating analysts’ EPS expectations of $4.72 per share.

Meta Platforms, Inc. (NASDAQ:META)’s share price has surged 25% since the announcement of Q2 results on July 31. Investors are also buoyant about the company’s investments in artificial intelligence, which has resulted in successful launches of new products like the Ray-Ban Meta Glasses and Meta Quest 3, whose demand has outpaced the tech giant’s expectations.

Wall Street analysts agree on the stock’s Strong Buy rating. Hedge fund sentiment also remains strong, given the company’s positive future outlook. According to Insider Monkey, 219 hedge funds had investments in META as of Q2 2024, making it one of the most owned stocks by hedge funds right now.

However, some aspects can affect META’s short-term financials. The company plans to incur an additional $40 billion in capital expenditure this year, which will likely put pressure on its share price. Moreover, management expects a slowdown in Reel impressions and advertisements on its social media platforms in Q3, as the surge of China-based advertisers on its social media apps which was witnessed last year is unlikely this time around.