12 Reddit Stocks with High Potential

8. Meta Platforms Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 262

Average Upside Potential as of April 15: 40.17%

Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share with friends and family through mobile devices, personal computers, VR and mixed reality headsets, AR, and wearables. It operates through two segments: Family of Apps (FoA) and Reality Labs (RL). It was formerly known as Facebook Inc. until October 2021.

Meta’s total FoA revenue surged by 21% in Q4 2024. Notable, ad revenue for FoA alone rose by 21% as well. FoA recorded $47.3 billion in Q4 revenue, while FoA ad revenue was $46.8 billion in the same quarter. The total number of ad impressions also increased by 6%, and the average price per ad rose by 14%. Meta is further improving its revenue performance through better monetization efficiency.

On April 10, Thomas Champion from Piper Sandler maintained a Buy rating on the company with a $610 price target. This sentiment was fueled by performance checks with an Ad Buyer and an evaluation of Meta’s upcoming financial performance. Meta now anticipates generating $42.5 to $45.5 billion in revenue in the second quarter of the year. This will be a 9% to 16.5% improvement year-over-year.

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)