5 Best FAANG Stocks to Buy Now

1. Facebook, Inc. (NASDAQ: FB)

Number of Hedge Fund Holders: 257

Topping the 10 best FAANG stocks to buy now is Facebook, Inc. (NASDAQ: FB). The California-based company is the largest social networking company globally, with 2.9 billion monthly active users. Facebook, Inc. (NASDAQ: FB) also operates and develops the instant messaging apps Messenger and WeChat and photo-sharing app Instagram.

Truist analyst Youssef Squali maintained a Buy rating on Facebook, Inc. (NASDAQ: FB) on July 29 and increased the firm’s price target to $425 per share from $400, noting the company’s AR/VR technologies, as well as video and commerce, as significant growth drivers.

The company has a market cap of $1 trillion. In the second quarter of 2021, Facebook, Inc. (NASDAQ: FB) reported an adjusted EPS of $3.61, beating estimates of $3.03. The company’s second-quarter revenue was $29.08 billion, an increase of 58% year over year and beating revenue estimates of $27.89 billion. The stock has gained 31% year to date, and shares increased 9% in the last three months.

By the end of the first quarter of 2021, 257 hedge funds followed by Insider Monkey held stakes in Facebook, Inc. (NASDAQ: FB) with a total value of $40.9 billion.

In its Q2 investor letter, Wedgewood Partners mentioned Facebook, Inc. (NASDAQ: FB) and discussed its stance on the firm. Here is what the fund said: 

“Facebook’s first-quarter 2021 revenues grew an astonishing +48% (constant currency), compared to +18% growth from a year ago. Unlike Alphabet, growing headcount +26% more recently. Facebook has pulled forward several years of investment during the past few years and has had a particular focus on content curation capabilities with the goal of making its platforms safer and more accessible for brands and users. The company should be able to increasingly automate these functions as its heavy investments in artificial intelligence, especially machine learning, yield productivity benefits. The stock continues to trade at a meaningful discount compared to other companies that are growing revenues this quickly and finished the quarter as our second-largest weighting.”

You can also take a peek at the 12 Best Bear Market Stocks to Buy Now and 15 Best Utility Stocks to Invest In.

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