5 Best Debt Free Stocks to Buy

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

Number of Hedge Fund Holders: 177

Meta Platforms, Inc. (NASDAQ:META) ranks #1 on our list of 11 Best Debt Free Stocks to Buy given 177 hedge funds in our database owned shares of the social media giant at the end of the third quarter. Although Meta Platforms, Inc. (NASDAQ:META) actually does have some long term debt given its long term debt ratio of 0.08, Meta Platforms, Inc. (NASDAQ:META) has a lot of cash and short term investments on its balance sheet to more than cover its debt. As of September 30, the company had cash, cash equivalents, and marketable securities of $41.78 billion versus long term debt of $9.92 billion. Although Meta Platforms, Inc. (NASDAQ:META) stock hasn’t done well in 2022, shares are still substantially higher than in 2013.

ClearBridge Investments commented on Meta Platforms, Inc. (NASDAQ:META) in a Q3 2022 investor letter,

We initiated a new position in Meta Platforms, Inc. (NASDAQ:META), in the communication services sector, which operates the Facebook and Instagram social media platforms and is a leading digital advertising provider. We have been carefully watching the company over the last few quarters and believe headwinds from lower monetizing in Facebook and Instagram Reels and pressures from consumer privacy measures are poised to lessen. We believe the company has begun to fully acclimate to this new environment, will achieve greater effectiveness in Reels monetization and find ways to adapt to new privacy standards which will rebound advertising efficiency. Combined with a greater focus on cost control, we believe these initiatives will help contribute to further margin expansion and leave the company well-positioned moving forward.

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