12 Best Technology Stocks to Invest In for the Long Term

3. Meta Platforms Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 235

Meta Platforms Inc. (NASDAQ:META) is a technology company that runs Facebook, Instagram, Threads, and WhatsApp, with over 3 billion daily active users. It’s integrating AI across its platforms to enhance user experience.

In 2024, the company’s stock rallied by 72%, driven by AI, leading to increased engagement and driving advertising revenue. Its Llama AI model, with over 500 million monthly active users, positions it as a leader in GenAI. Its Andromeda machine learning model and Advantage+ platform are improving ad targeting and increasing advertiser return on investment. Andromeda is the company’s AI system for intelligently selecting which ads to show to each user. Whereas Advantage+ includes AI-powered tools that automate ad campaign management for better results.

Citi analysts, led by Ronald Josey, are bullish on Meta Platforms Inc.’s (NASDAQ:META) prospects, citing its strong product cycle and AI-driven growth initiatives. Appaloosa Management, a prominent hedge fund, has held a significant stake in Meta Platforms Inc. (NASDAQ:META) for several years, reflecting strong investor confidence in the company’s long-term growth potential.

Hardman Johnston Global Equity initiated a new position in Meta Platforms, Inc. (NASDAQ:META), citing improved investment efficiency, strong AI-driven growth prospects, and a more proactive approach to user safety, reversing their previous bearish stance. It stated the following regarding the company in its Q3 2024 investor letter:

“During the quarter, we initiated one new position in Meta Platforms, Inc. (NASDAQ:META) and had no liquidations. Management at Meta has effectively addressed concerns about investment efficiency by shifting resources from Reality Labs towards broader AI initiatives with a clearer path to profitability. We believe management has successfully articulated the benefits of this strategy, highlighting how AI is driving user engagement and advertiser productivity. This, in turn, fuels continued revenue momentum and increases the likelihood of positive earnings surprises in the future. Additionally, the parent company of the social media platform, Facebook, has recently taken positive steps to enhance safety, which suggests to us a shift towards a more proactive and responsive approach to addressing important potential challenges and concerns. Weak oversight over data privacy protection was a key reason why we sold the position in the portfolio back in 2021. Removing this governance overhang allows us to feel comfortable to enter back into the stock at a time when we believe it is poised for strong earnings growth going forward.”