5 Best Reddit Stocks to Buy Now

2. Meta Platforms Inc (NASDAQ:META)

Number of Hedge Fund Investors: 242

Meta makes it to the list of the best Reddit stocks to buy because of its huge AI-related investments, thriving ads business and its market leading position in the social media platforms industry. Redditors thinks elections in 2024 would bode well for Meta Platforms Inc (NASDAQ:META) amid rising ad spending.  Many Redditors grilled the short-term approach of the market in the past where investors thought Facebook usage was down and Meta Platforms Inc (NASDAQ:META) was lagging behind in innovation and growth. Later events proved Mark Zuckerberg had a long-term vision and he played the AI card smartly.

SaltLight Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its fourth quarter 2023 investor letter:

“Meta Platforms, Inc.’s (NASDAQ:META) primary mission is all about capitalising on user engagement and maintaining its network effects. AI is augmenting their objectives in two ways: 1) Improving engagement time per daily active user (AI Job One) 2) Matching ad buyers (advertisers) with ad consumers (AI Job Two)

Improving Engagement Time per Daily Active User Meta is in the business of making sure that when you’re scrolling through your feed or watching videos, you’re glued to the screen as long as possible. Why? Because the longer you watch, the more ads they can slip into your viewing experience (think of digital billboards). But these ‘digital billboards’ are a finite resource – only more engagement time creates them.

And here’s where the magic of ‘AI job one’ comes in – finding that perfect video that keeps you hooked – thereby increasing the time you spend on the platform. It’s a cycle that feeds itself: more engagement means more opportunities to serve ads, which in turn means more revenue…” (Click here to read the full text)