5 NASDAQ Stocks with Biggest Upside

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

Number of Hedge Fund Holders: 225

Meta Platforms, Inc. (NASDAQ:META) is one of the top NASDAQ stocks with upside potential. Goldman Sachs’ Brian Nowak recently said that Meta Platforms, Inc. (NASDAQ:META) could generate as much as $20 per share in earnings by 2024, driven by Reels, Click to Message and ads. Nowak said that Reels monetization results have surprised him and they account for just about 28% of the total core ads business. The analyst has a $375 price target on Meta Platforms, Inc. (NASDAQ:META).

RiverPark Large Growth Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q2 2023 investor letter:

“Meta Platforms, Inc. (NASDAQ:META): META shares, continuing their rebound, were the top contributor for the second quarter. The company reported 1Q23 results, beating revenue expectations and lowering guidance for operating expenses and capital expenditures, while increasing revenue expectations.

META owns multiple social media platforms, each with more than one billion users, has an 80% gross margin, and generated $20 billion of FCF in 2022. Both its Facebook and its Instagram franchises have more than 2 billion Daily Active Users and generate the bulk of the company’s revenue. Recently, the company’s short form video offering, Reels, has gained mass user engagement and growing advertiser adoption, which we believe will return the company to strong revenue and free cash flow growth. After its advance, META shares trade at 19x Wall Street’s consensus estimates for 2024 EPS, estimates that we think could prove to be too low.”