8 Best AdTech Stocks to Buy Now

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

Number of Hedge Fund Holders: 246

Meta Platforms, Inc. (NASDAQ:META) is the world’s largest online social network, having more than 3.6 billion monthly active users. These users engage with each other in a variety of ways, exchanging messages and sharing news events, etc.

The company released its 2Q 2024 financial results, wherein, its revenues jumped 22% YoY to $39 billion, with ads revenue coming at ~$38.3 billion. Ads revenue saw a jump of ~22% YoY, and the management of Meta Platforms, Inc. (NASDAQ:META) is quite optimistic about ads revenue for 3Q 2024.

In May, the company unveiled a slate of new Gen-AI-powered tools and services. These services focus on helping businesses improve their ad performance and visibility on the company’s popular social platforms such as Facebook and Instagram.

Meta Platforms, Inc. (NASDAQ:META)’s management highlighted that spending is expected to significantly increase in 2025 because of its infrastructure costs. Well, this increase is understandable as this is related to the development of a leading large language model. This powers GenAI technologies. The company continues to focus on improving its ad revenues by innovating in a way that can bring more personalization to each user. This should help Meta Platforms, Inc. (NASDAQ:META) increase the price per ad.

Analysts at Piper Sandler upped their price objective on the shares of Meta Platforms, Inc. (NASDAQ:META) from $545.00 to $575.00, giving it an “Overweight” rating on 1^st August. As of the first quarter, the stock is held by 246 hedge funds with stakes worth $46.9 billion.

Polen Capital, an investment management company, released its second-quarter 2024 investor letter and mentioned Meta Platforms, Inc. (NASDAQ:META). Here is what the fund said:

“In the second quarter, the top relative contributors to the Portfolio’s performance were all names we do not hold: Home Depot, Meta Platforms, Inc. (NASDAQ:META), and AbbVie. Meta Platforms delivered robust results in the period, with revenue growth accelerating in the first quarter. However, revenue comparisons for Meta will become more difficult from here, and its guidance for 2Q revenue fell below market expectations. After the company’s “year of efficiency,” where it cut costs in its core business, management is now indicating another ramp-up in GenAI and metaverse spending, spurring concerns about future profit margins. Metaverse spending, by our calculations, is now over $20 billion per year with little to no expected return on the foreseeable horizon.”