13 Best Quality Stocks To Buy

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

Number of Hedge Fund Shareholders In Q1 2024: 246

Meta Platforms, Inc. (NASDAQ:META) owns Facebook, Instagram, and WhatsApp. It’s another highly rated big tech AI stock. The average of 52 one year Meta Platforms, Inc. (NASDAQ:META) share price target is $512.99 and the average rating is Strong Buy. The firm has also beaten analyst EPS estimates in all four of its latest quarters. A Strong Buy doesn’t scratch the itch? Well, consider a rather rare Sell rating on Meta Platforms, Inc. (NASDAQ:META)’s shares by BNP Paribas in May 2024. The firm took aim at Meta’s AI spending, sharing that while other big tech AI players like Alphabet have the revenue to fund it, Meta Platforms, Inc. (NASDAQ:META) might find it difficult to do so. AI spending has been a key concern for Meta Platforms, Inc. (NASDAQ:META) investors, and they have often punished the shares because of it.

As of Q1 2024 end, 246 out of the 933 hedge funds covered by Insider Monkey’s research were Meta Platforms, Inc. (NASDAQ:META)’s stakeholders. Rajiv Jain’s GQG Partners held the most valuable stake which was worth $5.5 billion.

Like Alphabet, Meta Platforms, Inc. (NASDAQ:META)’s price to forward earnings ratio is 23.63 which is nearly in line with the S&P 500’s 21. Additionally, while the revenue has grown by 57% over the past four years, the shares have appreciated by 123%, creating similar worries to Alphabet’s stock. However, Meta could benefit significantly from making its AI model Llama open source and capturing market share. While BNP Paribas is wary of Meta Platforms, Inc. (NASDAQ:META), Harding Loevner took a different tone in its Q1 2024 investor letter:

Meta’s AI-powered Advantage+ product is winning an increasing share of advertisers’ budgets, supporting the company’s continued dominance of the digital-advertising market. Meta’s content-recommendation engine also has improved engagement and monetization for the Reels video feature, as competition from TikTok abates. Netflix reported better-than-expected subscriber growth for the fourth quarter of 2023 and improving profitability, trends that management said would continue in 2024.

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