3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 194
Meta AI is an AI research lab owned by Meta Platforms, Inc. (NASDAQ:META). Its main goal is to improve augmented and artificial reality technologies through the development of various forms of artificial intelligence. Unlike Facebook’s Applied Machine Learning (AML) team, which concentrates on practical applications of its products, Meta AI is an academic research lab dedicated to generating knowledge for the AI community. Meta Platforms, Inc. (NASDAQ:META) is one of the best AI stocks to invest in.
On February 21, Bank of America expressed interest in Meta Platforms, Inc. (NASDAQ:META)’s new subscription service, Meta Verified, which was announced on February 19 for Facebook and Instagram. BofA believes that Meta Platforms, Inc. (NASDAQ:META) has the potential to reach 12 million subscribers by the end of 2023 or early 2024. Despite some limitations, BofA believes that Meta may perform better than its peers in terms of subscriber growth, given its wider audience reach and larger revenue opportunities for creators. BofA also noted that Meta Platforms, Inc. (NASDAQ:META) is taking aggressive action to increase earnings in the year of efficiency. As a result, BofA maintained its Buy rating and $220 price target on Meta’s shares.
According to Insider Monkey’s fourth quarter database, 194 hedge funds were long Meta Platforms, Inc. (NASDAQ:META), compared to 177 funds in the prior quarter. Boykin Curry’s Eagle Capital Management holds a $1 billion stake in the company.
ClearBridge Large Cap Value Strategy made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q4 2022 investor letter:
“We also initiated and subsequently added to a position in Meta Platforms, Inc. (NASDAQ:META) following a 70% year-to-date decline in its shares. Meta shares derated materially in 2022 as revenue growth slowed due to tough comps versus a strong e-commerce environment during COVID-19, privacy changes put in place by Apple, and the meteoric rise of rival social media platform TikTok. The company’s valuation declined to a compelling 10x consensus 2023 earnings, which in our view materially undervalued its long-term earnings and free cash flow generation potential. Despite current revenue headwinds, we believe Meta’s massive platform reach should allow it to continue to attract engagement, a metric that appears to be accelerating with the launch of its short-form video product “Reels”. The company’s ability to target potential customers is also set to improve, driven by large investments in artificial intelligence and improved analytical tools to navigate Apple’s privacy policies. We also welcome the company’s increasing financial discipline, including reining in both capex and opex, which should sustain the company’s high underlying profitability and gain back investor confidence. Meta has also done a good amount of work to improve its social media platforms Facebook and Instagram and has best-in-class practices designed to reduce hate speech and improve privacy.”
