Billionaire Israel Englander’s Top 10 Stock Picks Heading Into 2025

6. Meta Platforms Inc (NASDAQ:META)

Millennium Management’s Stake Value: $765.77 Million

Number of Hedge Fund Holders: 235

Meta Platforms Inc (NASDAQ:META) is a communication services company that offers products that help people connect and share with friends and family. As the parent company behind Facebook, Instagram, WhatsApp and Messenger, it’s a market leader in the social networking space. The stock outperformed the overall market, rallying by 72% in 2024.

The rally came as the social networking giant emerged as one of the companies benefiting from the artificial intelligence revolution. The tech giant is increasingly leveraging artificial intelligence to boost engagement and user experience in its networking apps. In return, it has successfully attracted advertisers looking to target its massive consumer base.

Meta Platforms Inc (NASDAQ:META) is already a major player in the AI boom, which makes sense given that it is a huge company with almost 3.3 billion daily active users across its various social media platforms. 500 million people use the company’s Meta AI assistant each month. Advertisers aiming to reach a captive audience will find this more appealing.

Because of AI, its family of apps, Facebook, Instagram, and WhatsApp, has grown to be an extremely valuable digital real estate for advertisers. Instagram’s shift from gallery-style, standalone photos to short-form, scrolling videos has revolutionized Meta’s profits and cash flow.

Revenues in the first nine months of 2024 were up by 22%. Profitability has also improved. In the third quarter of 2024, Meta Platforms Inc (NASDAQ:META) reported an impressive operating margin of 43%.

Hardman Johnston Global Equity stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q3 2024 investor letter:

“During the quarter, we initiated one new position in Meta Platforms, Inc. (NASDAQ:META) and had no liquidations. Management at Meta has effectively addressed concerns about investment efficiency by shifting resources from Reality Labs towards broader AI initiatives with a clearer path to profitability. We believe management has successfully articulated the benefits of this strategy, highlighting how AI is driving user engagement and advertiser productivity. This, in turn, fuels continued revenue momentum and increases the likelihood of positive earnings surprises in the future. Additionally, the parent company of the social media platform, Facebook, has recently taken positive steps to enhance safety, which suggests to us a shift towards a more proactive and responsive approach to addressing important potential challenges and concerns. Weak oversight over data privacy protection was a key reason why we sold the position in the portfolio back in 2021. Removing this governance overhang allows us to feel comfortable to enter back into the stock at a time when we believe it is poised for strong earnings growth going forward.”