8 Best Robinhood Stocks to Buy According to Analysts

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

Average Upside Potential: ~28.7%

Number of Hedge Fund Holders: 261

Analyst Doug Anmuth from J.P. Morgan maintained a “Buy” rating on Meta Platforms, Inc. (NASDAQ:META)’s stock with a price objective of $725.00. The analyst’s rating is backed by a combination of factors that include the company’s healthy financial performance and strategic long-term investments. Meta Platforms, Inc. (NASDAQ:META)’s significant investments in capital expenditures and infrastructure can act as strategic advantages that can yield benefits over time. For FY 2025, the company expects its capital expenditures to be $60 billion – $65 billion.  Furthermore, the company’s focus on advancements in artificial intelligence and the Metaverse remains in line with the critical technological trends, which can fuel future growth.

Meta Platforms, Inc. (NASDAQ:META)’s strong focus on enhancing user experience and its healthy competitive position in the digital advertising space strengthens its prospects. The AI-driven services can result in new revenue streams in the enterprise market. The services can span from AI-powered customer service solutions to advanced analytics tools for businesses, enabling diversification of Meta Platforms, Inc. (NASDAQ:META)’s revenue over and above traditional advertising.

Rowan Street Capital, an investment management company, released the Q4 2024 investor letter. Here is what the fund said:

“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on an investment, accounting for the timing and magnitude of cash flows over the holding period.

For META, our 22% IRR aligns closely with the company’s compounded growth in earnings per share (EPS) and free cash flow per share during the 6 years holding period.

Looking ahead, Meta is expected to grow its revenues, earnings, and free cash flow per share at mid-teens rates over the next two years. There’s a good possibility that it could exceed these estimates, considering the breadth of growth initiatives currently in place, such as advancements in Al, monetization of Reels, expansion into business messaging, and the ongoing development of the metaverse…” (Click here to read the full text)