Arrowstreet Capital Stock Portfolio: Top 10 Stocks to Buy

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

Number of Hedge Fund Holders as of Q4: 262

Arrowstreet Capital’s Equity Stake: $5.21 Billion 

Meta Platforms, Inc. (NASDAQ:META) has solidified its leadership in digital advertising through rapid advancements in artificial intelligence (AI), driving substantial financial growth despite shifting industry policies. In its Q4 2024 earnings report, Meta reported exceptional performance, with revenue rising 21% year-over-year to $48.4 billion, surpassing analysts’ expectations of $47 billion and reinforcing its competitive edge. Earnings per share (EPS) surged 50% to $8.02, exceeding projections of $6.76 and contributing to a nearly 9% increase in Meta’s stock price. The company’s digital advertising segment remains its primary revenue source, leveraging AI to enhance ad targeting and content recommendations, which has strengthened its market dominance and attracted higher ad spending.

Meta Platforms, Inc. (NASDAQ:META) has seen a 22% increase over the past year, though its stock remains 15% below its 52-week high. Despite this, investors have reason for optimism as the company prepares to launch its Llama 4 artificial intelligence (AI) model in April 2025, which is expected to introduce major technological advancements. At the Morgan Stanley Technology, Media, and Telecom Conference, Meta’s Chief Product Officer Chris Cox highlighted Llama 4’s capability to enhance AI agents, enabling them to perform complex, multi-step tasks autonomously. Additionally, Meta Platforms, Inc. (NASDAQ:META) is set to host its first LlamaCon AI Conference on April 29, further emphasizing its commitment to AI innovation. Industry experts suggest that Meta’s expanding AI initiatives, including a rumored standalone Meta AI app expected in Q2 2025, could strengthen its position in the competitive generative AI market.

Investor confidence in Meta Platforms, Inc. (NASDAQ:META) continues to grow, with institutional support increasing significantly. Hedge fund interest also saw a notable rise, with 262 funds holding stakes valued at nearly $59.4 billion by the end of Q4 2024, compared to 235 funds in the previous quarter, according to Insider Monkey’s database. With its strong financial position, AI-driven expansion, and dominance in digital advertising, Meta Platforms, Inc. (NASDAQ:META) remains a top stock choice for investors.