13 NASDAQ Stocks with the Highest Upside Potential

8. Meta Platforms Inc. (NASDAQ:META)

Average Upside Potential as of April 8: 49.15%

Number of Hedge Fund Holders: 262

Meta Platforms Inc. (NASDAQ:META) helps people connect and share with friends and family through its Family of Apps (FoA) and Reality Labs (RL) segments. FoA offers Facebook, Instagram, Messenger, Threads, and WhatsApp. Whereas RL provides virtual, augmented, and mixed reality-related products which include consumer hardware, software, and content.

On April 3, Brad Erickson of RBC Capital set a price target of $740 on the company while reiterating a Buy rating because of the optimism surrounding the company’s growing market share in digital advertising. The analyst anticipates the company’s gain in the ad market to increase in 2025, making a comparison of Meta Platforms Inc. (NASDAQ:META) with Google.

This is reflected in the company’s Q4 2024 performance. The total FoA revenue surged by 21% in this quarter, whereas ad revenue for this segment alone rose by the same percentage. FoA recorded $47.3 billion in Q4 revenue, whereas FoA ad revenue generated $46.8 billion in the same period. Additionally, the total number of ad impressions increased by 6%, while the average price per ad rose by 14%. The company is further improving its revenue performance through better monetization efficiency.

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)