10 Most Widely Held Stocks by Hedge Funds

3. Meta Platforms Inc (NASDAQ:META)

Number of Hedge Fund Holders: 219

Meta Platforms Inc (NASDAQ:META), commonly referred to as Meta and formerly known as Facebook, is a technology conglomerate behind the leading social media platforms such as Facebook, Instagram, Threads, and WhatsApp. The company currently boasts a user base of 3.27 billion daily active users across all its social media platforms.

Meta Platforms Inc (NASDAQ:META) is making strides in artificial intelligence and augmented reality. During the second quarter, the company launched its AI Studio in the United States, a platform for people to create, share, and discover artificial intelligence models. In addition to that, on September 25, the company launched Orion, its first augmented reality glasses, the first most advanced pair of AR glasses ever made.

Meta Platforms Inc (NASDAQ:META) has a strong position in the market, making it one of the most widely held stocks by hedge funds. By 2026, the company expects to own the best recommendation technology on its social media platforms. Meta Platforms Inc (NASDAQ:META) is achieving this by expanding its collection of open models and tools for generative artificial intelligence.

Overall, Meta Platforms Inc (NASDAQ:META) reported $39.1 billion in revenue, in the second quarter of 2024, up by 22% year-over-year.  The company also generated $10.9 billion in free cash flow supporting its dividend payouts and stock repurchases. With strong expectations ahead of 2024, the company projects revenue to reach $38.5 billion in the third quarter of 2024.

Mar Vista Investment Partners’ Mar Vista Focus strategy stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q2 2024 investor letter:

“During the quarter, we established new investments in Broadcom and Meta Platforms, Inc. (NASDAQ:META). We previously divested from Meta during a period of stagnant advertising growth and the company’s initial, significant investment in the metaverse project. At that time, investors appeared complacent to the risks associated to an increasingly competitive landscape, and the Street’s robust financial expectations as the company transitioned towards monetizing short-format video (Reels). The subsequent decline in Meta’s stock price during 2022 reflected these concerns.

Since then, Meta has demonstrably shifted its strategic focus. The company has prioritized operational efficiency, implemented strategies to monetize Reels effectively, and initiated a robust artificial intelligence (AI) development program. We believe the focus on AI represents a more prudent capital allocation strategy compared to the earlier metaverse initiative. Meta AI holds significant potential to unlock substantial monetization opportunities and enhance user engagement, while maintaining tight controls on operating costs…” (Click here to read the full text)