5 Best Communication Stocks To Buy Today

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

Number of Hedge Fund Holders: 177   

Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide. On September 20, the company announced that it was planning to integrate the WhatsApp messaging service, used by billions around the world for communication purposes, with the business services of Salesforce to help businesses chat directly with their customers. No other firm has as many customers that use their products for communication services.  The company also has a low PE Ratio, adding to the value proposition of the stock. It is investing heavily in new tech like the metaverse as well, adding to the long-term allure of the shares. The company is trading at 11.65x earnings and 10.71x free cash flow and is slated for growth in the core social media business as it innovates, particularly through Reels that are competing with TikTok. The firm has a free cash-flow yield that is better than competitors. 

On September 12, Piper Sandler analyst Thomas Champion maintained a Neutral rating on Meta Platforms, Inc. (NASDAQ:META) stock and lowered the price target to $175 from $190, noting that checks indicated app tracking transparency headwinds were significant for the firm.

At the end of the third quarter of 2022, 177 hedge funds in the database of Insider Monkey held stakes worth $14 billion in Meta Platforms, Inc. (NASDAQ:META), compared to 184 the preceding quarter worth $18 billion.

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:META) was one of them. Here is what the fund said:

“Shares of Meta Platforms, Inc. (NASDAQ:META), the owner of Facebook, the world’s largest social network, fell 28.4% during the second quarter due to quarterly results that missed consensus estimates, driven by the impact of Apple’s new privacy changes in its iOS operating system. These changes have made it harder for Facebook to measure the effectiveness of its advertising across its mobile apps.

In the longer term, we expect Facebook to continue utilizing its leadership in mobile to provide global advertisers targeted marketing capabilities at scale, with substantial monetization optionality ahead in newer areas such as Reels (Meta’s competing solution to TikTok) and e-commerce.”

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