5 Stocks That Could 10X Over the Next 10 Years

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

Number of Hedge Fund Holders: 225

There were 225 hedge funds long Meta Platforms, Inc. (NASDAQ:META) in the second quarter. Their total stake value was $30.9 billion.

Ygal Arounian initiated coverage on Meta Platforms, Inc. (NASDAQ:META) with an Outperform rating and a $350 price target on August 22.

Meta Platforms, Inc. (NASDAQ:META) is a communication services company. It is a big tech corporation and the company behind popular social media applications like Facebook and Instagram.

Giverny Capital Asset Management, LLC mentioned Meta Platforms, Inc. (NASDAQ:META) in its second-quarter 2023 investor letter:

“I have believed for a while that we’re better served with a lower weight to the tech giants – we own Alphabet (8.1% of our model portfolio at the end of June) and Meta Platforms, Inc. (NASDAQ:META) (5.2%) for a 13.3% exposure, or about half the Index’s weight in the giants. And while Alphabet’s 36% return for the first half and Meta’s 138% return were gratefully received, I’m pleased to report that if we strip out that contribution to our overall return, the other 23 stocks we own, constituting 85% of our portfolio (with cash making up the balance), were up 10.2% on a weighted basis.

GCAM owns two of the seven tech mega caps in Alphabet and Meta, and they enjoyed similar rises. As mentioned, Alphabet A&C shares rose 36% while Meta rose 138%. Together, they added 2.38 percentage points to the overall Index return, meaning these seven tech giants cumulatively generated 12.4 percentage points of return, or roughly three-quarters of the Index’s return.

Alphabet and Meta combined sport a $2.25 trillion market cap and between them should generate roughly $120 billion of pretax profit this year. That’s a multiple of 19 times pretax profit, a substantial discount to Microsoft and Apple, and an even larger discount to Amazon, Nvidia and Tesla.”

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