13 Best Big Tech Stocks To Buy Now

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 219

Meta Platforms, Inc. (NASDAQ:META) is Mark Zuckerberg’s social media company that has gained immense fame over the past few decades. It is based in Menlo Park, California.

Since Meta Platforms, Inc. (NASDAQ:META) is a global leader in the internet economy, many investors are awed by the position it holds and the number of popular social media platforms it owns. Because of this, the company also has about 18% of the global market for digital advertising sales since its social media platforms enable it to generate huge amounts of ad revenue.

Another reason why Meta Platforms, Inc. (NASDAQ:META) is gaining investors is its focused approach to AI integration. This is one of the most aggressive companies when it comes to building a network infrastructure and computing power, and it has about $37-40 billion set aside to spend on AI just this year. Through AI spending, Meta Platforms, Inc. (NASDAQ:META) aims to enhance user experience on its platforms by adding greater functionality and boosting advertisers’ ability to target their audience.

With all this, some may be wary about Meta Platforms, Inc.’s (NASDAQ:META) intense spending habits. However, in the second quarter, the company announced a 38% operating margin and generated $10.9 billion in free cash flow. Meta Platforms, Inc. (NASDAQ:META) ended the quarter with a net cash position of $40 billion – so many investors’ concerns have been alleviated.

Meta Platforms, Inc. (NASDAQ:META) was spotted in the portfolios of 219 hedge funds in the second quarter, with a total stake value of $42.5 billion.

Rowan Street Capital mentioned Meta Platforms, Inc. (NASDAQ:META) in its second-quarter 2024 investor letter:

“We are pleased to report that Meta Platforms, Inc. (NASDAQ:META), our largest position in the fund, has delivered a remarkable performance, +450% since our November 2022 note. Our investment in Meta dates back to 2018, with an average cost basis of approximately $172 per share. Today, the stock trades around $535, reflecting a 3x return over the six-year holding period, equating to a 20% annualized return.

We would like to remind you that achieving these types of returns is never a straight path. From time to time, we might experience volatility — that’s simply part of the investment journey. In fact, wealth creation and volatility go hand in hand. There’s no escaping it; it’s the “price of admission” the market demands. If you take a look at the chart below, you’ll notice the drawdowns META stock has faced over the years, with 2022 standing out as a particularly challenging period, where the stock saw a 75% drop…” (Click here to read the full text)