Billionaire Daniel Sundheim’s Top 15 Stock Picks Heading Into 2025

11. Meta Platforms Inc. (NASDAQ:META)

D1 Capital Partners’ Equity Stake: $144.06 Million

Number of Hedge Fund Holders as of Q3 2024: 235

Meta Platforms Inc. (NASDAQ:META) is a communication services company that develops and provides products that enable people to connect and share with friends. It is a leader in the social networking space as it owns four of the biggest apps that draw in billions of daily active users. Consequently, it has grown to become a powerhouse in digital advertising through Facebook, Instagram and Messenger.

Meta Platforms Inc. (NASDAQ:META) is one of billionaire Daniel Sundheim’s top 15 stock picks for 2025. After a tough 2022 with a 1% revenue drop, the company has bounced back, with revenue up 22% in the first nine months of this year. Its 43% operating margin has boosted profitability, and the stock is up by 80% this year. Meta’s recovery is due to its investments in artificial intelligence, which have improved user engagement and experience. The company now has about 3.3 billion daily active users across its social media platforms.

Growing daily active users and improved engagement levels have made Meta Platforms Inc. (NASDAQ:META) a preferred advertising platform for advertisers looking to target their audience. Over a million advertisers used its AI tools in October to make great ads. The company plans to spend $38 billion to $40 billion to improve its network, which looks promising for the future.

Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q2 2024 investor letter:

“We are pleased to report that Meta Platforms, Inc. (NASDAQ:META), our largest position in the fund, has delivered a remarkable performance, +450% since our November 2022 note. Our investment in Meta dates back to 2018, with an average cost basis of approximately $172 per share. Today, the stock trades around $535, reflecting a 3x return over the six-year holding period, equating to a 20% annualized return.

We would like to remind you that achieving these types of returns is never a straight path. From time to time, we might experience volatility — that’s simply part of the investment journey. In fact, wealth creation and volatility go hand in hand. There’s no escaping it; it’s the “price of admission” the market demands. If you take a look at the chart below, you’ll notice the drawdowns META stock has faced over the years, with 2022 standing out as a particularly challenging period, where the stock saw a 75% drop….. ” (Click here to read the full text)