7 Best American Stocks To Buy and Hold in 2024

3. Meta Platforms Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 219

Meta Platforms Inc. (NASDAQ:META) is a multinational technology company that focuses on social media and online communication, best known for its flagship social networking platform, Facebook. It also owns other popular social media apps like Instagram, WhatsApp, and Messenger. The mission is to connect people around the world and build communities.

The company’s AI-enhanced advertising and business user monetization led to Q2 2024 ad growth twice that of Google, despite higher ad costs. Daily active users rose 7%, while earnings per share surged 73% and revenue increased 22.10% year-over-year. This growth was driven by a 10% increase in ads served and cost per ad. It acquired 600,000 Nvidia H100 GPUs and is developing its own AI chip.

Its Reality Labs division is driving immersive experiences with products like the Meta Quest VR headset and Ray-Ban smart glasses. The company’s AI language model, Llama, is poised to enhance hardware-social media integration. Recent updates to Ray-Ban Meta glasses have boosted sales, and a renewed partnership with EssilorLuxottica signals a strong commitment to smart eyewear technology. In October, it launched features designed to help young adults discover new interests and connect with like-minded people.

Driven by a robust user base, cutting-edge AI, and sophisticated advertising, the company is rapidly expanding. A commitment to innovation, including a strategic push into the metaverse, positions it for continued success. AI-powered products, such as Meta AI and Meta Smart Glasses, offer users unparalleled experiences.

Here’s what Mar Vista Investment Partners, LLC said about Meta Platforms, Inc. (NASDAQ:META) in its Q2 2024 investor letter:

“During the quarter, we established new investments in Broadcom and Meta Platforms, Inc. (NASDAQ:META). We previously divested from Meta during a period of stagnant advertising growth and the company’s initial, significant investment in the metaverse project. At that time, investors appeared complacent to the risks associated to an increasingly competitive landscape, and the Street’s robust financial expectations as the company transitioned towards monetizing short-format video (Reels). The subsequent decline in Meta’s stock price during 2022 reflected these concerns.