12 Best QQQ Stocks to Invest in Now

3. Meta Platforms Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 262

Meta Platforms Inc. (NASDAQ:META) is a technology company that focuses on connecting people through its diverse platforms. Operating through its Family of Apps (FoA) and Reality Labs (RL) segments, it provides social networking services like Facebook, Instagram, Messenger, Threads, and WhatsApp. It also develops virtual, augmented, and mixed reality technologies.

On February 18, Morgan Stanley reiterated an Overweight rating on the company due to its potential to lead in robotics. This follows a report from February 14 that detailed the company’s substantial investment in AI-powered humanoid robots designed to perform human-like physical tasks. The AI-powered humanoid robots are a part of the company’s vision to create personalized AI experiences, where robots could be tailored to individual needs and preferences.

Meta Platforms Inc. (NASDAQ:META) believes that achieving a breakthrough in AI engineering agents, which is crucial for advanced robotics, will provide an advantage in the AI landscape. The company’s emphasis on AI robotics is a key component of its broader embodied AI strategy, which aims to integrate AI with the physical world.

Meta Platforms Inc. (NASDAQ:META) has delivered a strong 22% IRR, which aligns with its growth, and is expected to continue mid-teens growth with potential to exceed estimates. Rowan Street Capital stated the following regarding the company 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 an 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 years 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)