5 Jim Cramer Stocks This Month

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

Number of Hedge Fund Holders: 177

Meta Platforms, Inc. (NASDAQ:META) investors have finally something to cheer about as the company’s most recent quarterly results shows growth might be returning to Facebook platform. Jim Cramer earlier this month said in his program that Meta Platforms, Inc. (NASDAQ:META) is a case in point showing why it pays to stick with companies that are “incredibly well managed, or disciplined, or efficient.”

On a year-to-date basis Meta Platforms, Inc. (NASDAQ:META) stock has gained about 42% through February 10.

Some believe Meta Platforms, Inc. (NASDAQ:META)’s efforts to build its business around the metaverse technology has failed. However, Meta Platforms, Inc. (NASDAQ:META) can still profit from its long-term metaverse bets while focusing on its existing social media platforms. BlackRock recently said in a note that “investment opportunities are here and now” in the metaverse domain.

 “At this juncture, it is much like the internet of the early 1990s or the smartphone of the early 2000s: We expect it is going to be big, and very likely change people’s daily lives,” BlackRock said.

Vulcan Value Partners made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q4 2022 investor letter:

“During the quarter we sold Meta Platforms, Inc. (NASDAQ:META) after owning the business for over four years. The fundamentals of our investment case were based on the tremendous number of users that spent time on its various properties and the advertising dollars that flowed to the company as a result. We believed its competitive advantage was that the platform was, more or less, a monopoly on people’s time and attention. The rise of TikTok and other emerging platforms has given us pause on the company’s ability to maximize that advantage. From our perspective, the idea of “one platform to rule them all” may now be a thing of the past as social offerings have become more fragmented.

In addition, though our research has indicated that much of the initial damage done from Apple’s iOS 14.5 privacy changes has been repaired, we remain concerned with Apple’s influence over the digital advertising ecosystem. Apple is one of the largest gatekeepers to Meta’s mobile services, and it has become more difficult for us to gauge the pace of change emerging from Apple relating to privacy, as well as evaluating Apple’s ambitions in advertising…” (Click here to read the full text)