8. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders as of Q4: 262
Appaloosa Management’s Equity Stake: $286.90 Million
Meta Platforms, Inc. (NASDAQ:META) delivered a standout financial performance in 2024. The company reported total revenue of $164.5 billion, marking a 22% increase compared to the previous year. The fourth quarter of 2024 played a particularly significant role in Meta’s annual performance, accounting for 29.4% of the year’s total revenue. In Q4 alone, Meta generated $48.4 billion in revenue and over $20.8 billion in profit, representing a 21% year-over-year revenue increase and beating market expectations. Earnings per share surged by 50% to $8.02, surpassing the forecasted $6.76.
Investor confidence in Meta Platforms, Inc. (NASDAQ:META) remained strong, with hedge fund interest surging by the end of the fourth quarter of 2024. According to Insider Monkey’s database, 262 hedge funds held stakes in the company, up from 235 in the previous quarter. Hedge fund holdings in Meta climbed to approximately $59.4 billion, reflecting investor belief in the company’s long-term strategy, dominant presence in digital advertising, and ability to drive shareholder value through sustained earnings growth and technological leadership.
With 490,000 shares reported in its 13F holding, David Tepper holds a stake of approximately $287 million in Meta Platforms, Inc. (NASDAQ:META), making it one of his top 10 stock picks.
Amid Meta’s financial successes, the company faced public controversy and scrutiny following testimony from former executive Sarah Wynn-Williams before the Senate Judiciary Committee. Wynn-Williams, who served as Facebook’s Director of Global Public Policy from 2011 to 2017, accused the company of compromising U.S. national security by allegedly briefing the Chinese government on American artificial intelligence initiatives to advance its business interests in China. She claimed that Meta Platforms, Inc. (NASDAQ:META) executives misled employees, shareholders, Congress, and the public regarding their dealings with China. Her book, Careless People, detailing these experiences, sold 60,000 copies in its first week and reached the top 10 on Amazon’s bestseller list. In response, Meta strongly denied the allegations, calling her testimony “divorced from reality and riddled with false claims,”.
Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“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)
