5 Best Growth Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 184    

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. It is one of the elite growth stocks to invest in. On October 20, the independent oversight board of Meta Platforms revealed that it would apply warning screens by marking content as distributing or sensitive to photos and videos. On October 13, Meta founder Mark Zuckerberg said that a new device under Project Cambria named Quest Pro will be ready to ship in late October.

On October 21, JPMorgan analyst Doug Anmuth maintained a Neutral rating on Meta Platforms, Inc. (NASDAQ:META) stock and lowered the price target to $180 from $200, noting that sentiment remains cautious across the internet sector with secular growth slowing. 

At the end of the second quarter of 2022, 184 hedge funds in the database of Insider Monkey held stakes worth $18.2 billion in Meta Platforms, Inc. (NASDAQ:META), compared to 200 in the preceding quarter worth $19.3 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.”