5 Reddit Stocks with Biggest Upside

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

Number of Hedge Fund Holders: 225

Meta Platforms, Inc. (NASDAQ:META) has a strong upside potential due to several reasons. These include AI; its huge social reach via Facebook, Instagram, WhatsApp; and its AR/VR initiatives. The WSJ recently reported that Meta Platforms, Inc. (NASDAQ:META) is working on a powerful AI model to compete with GPT-4. Meta Platforms, Inc. (NASDAQ:META) aims to build a better model than its existing one called Llama.

As of the end of the second quarter of 2023, 225 hedge funds tracked by Insider Monkey reported owning stakes in Meta Platforms, Inc. (NASDAQ:META). The biggest stakeholder of Meta Platforms, Inc. (NASDAQ:META) during this period was Chase Coleman and Feroz Dewan’s Tiger Global Management LLC which owns a $2.5 billion stake in the company.

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.”