5 Stocks Most Bought By Hedge Funds

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

Number of Hedge Fund Holders: 242

Meta Platforms, Inc. (NASDAQ:META) ranks 3rd on our list of the most owned stocks by hedge funds. Meta Platforms, Inc. (NASDAQ:META) declared its first-ever quarterly dividend of $0.50 per share dividend. The dividend is payable on March 26, to shareholders on record as of February 22. The company also announced a $50 billion increase in share repurchase authorization.

According to Insider Monkey’s fourth quarter database, 242 hedge funds were long Meta Platforms, Inc. (NASDAQ:META), compared to 234 funds in the last quarter. Rajiv Jain’s GQG Partners is the biggest stakeholder of the company, with 11.15 million shares worth $4 billion. 

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)