12 Best Tech Stocks to Buy For Long-Term Investment

3. Meta Platforms Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 262

Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share with friends and family. It operates through two segments: Family of Apps (FoA), which includes Facebook and Instagram among other apps; and Reality Labs (RL) which provides virtual, augmented, and mixed reality-related products through consumer hardware and software.

In Q4 2024, the company’s FoA generated $47.3 billion in revenue which was up 21% year-over-year due to advertising. Advertising alone made $46.8 billion and increased by 21% year-over-year. Over 3.3 billion people use at least one of the company’s apps daily. The online commerce vertical majorly contributed to the year-over-year ad revenue growth. The company is integrating its AI assistant called Meta AI across FoA, which now reaches more than 700 million monthly active users.

Meta Platforms Inc. (NASDAQ:META) also uses AI to enhance ad ranking and targeting through Advantage+ to improve monetization efficiency. The company’s investments in these areas are expected to contribute to continued revenue growth in 2025 and beyond. On March 28, Evercore ISI maintained a Buy rating on Meta Platforms Inc. (NASDAQ:META).

Nightview Capital highlighted the company’s strong growth potential, due to its AI leadership with Llama model, advertising ecosystem, and AR capabilities. It stated the following regarding Meta Platforms Inc. (NASDAQ:META) in its Q4 2024 investor letter:

“Core Opportunity: Meta Platforms, Inc.’s (NASDAQ:META) platforms—Instagram, Facebook, WhatsApp, and Messenger—reach nearly half the world’s population daily, making it one of the most powerful advertising ecosystems globally. With investments in AI and augmented reality (AR), we believe Meta is also creating significant optionality for long-term growth.

Competitive Advantage: Thriving Core Platforms: In Q3, we saw Meta achieve a 23% YoY revenue growth,—a testament to strong user engagement across its ecosystem. The advertising landscape as a whole continues to evolve and we believe Meta’s existing platforms offer a defined advantage in this new world. Existing platforms in the age of AI continue to be the most powerful indicator of future success in our opinion.

AI Leadership: Meta’s AI capabilities and the Llama AI model are driving efficiency and product innovation. In our view, these assets have been under-appreciated by the market while enhancing Meta’s ability to further scale and innovate its leading advertising business…” (Click here to read the full text)