5 Stocks Jim Cramer Thinks Can Weather a Debt Default

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

Number of Hedge Fund Holders: 220

Meta Platforms, Inc. (NASDAQ:META) was spotted among the portfolios of 220 hedge funds in the first quarter. Their total stake value in the company was $25.1 billion.

Thomas Champion at Piper Sandler reiterated an Overweight rating and a $270 price target on Meta Platforms, Inc. (NASDAQ:META) on May 23.

Like the two companies above, Meta Platforms, Inc. (NASDAQ:META) is an AI name to add to your portfolio, according to Cramer. He states that the company has been “using AI to get around Apple Inc.’s (NASDAQ:AAPL) privacy restrictions” to “deliver targeted ads” to its users, something “advertisers love.”

Artisan Partners made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its first-quarter 2023 investor letter:

“Our top contributors in Q1 were Meta Platforms, Inc. (NASDAQ:META), Warner Bros Discovery (WBD) and FedEx. Following sharp declines in 2022, shares of Meta Platforms have more than doubled since their early November 2022 lows. Last year’s drawdown created a highly favorable risk-reward, which we took advantage of by adding to our position. Management has wisely, in our view, recalibrated its spending plans to focus on profitability amid a weaker advertising environment, increased TikTok competition and Apple’s privacy changes. While investors got ahead of themselves back in 2021, extrapolating pandemic growth rates into the future, Meta is still a highly successful enterprise generating over $120 billion of revenue annually on a run-rate basis and has more than $40 billion in cash on its balance sheet to help it navigate its future course. Recent usage and engagement trends for Facebook and Instagram have been positive, and Reels—Meta’s answer to TikTok—is gaining traction.”