BofA’s Top 10 Growth Stocks with The Fastest Projected EPS Growth Rates

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

Number of Hedge Fund Holders In Q2 2024: 219

Projected EPS Growth Rate: 21.6%

Meta Platforms, Inc. (NASDAQ:META) is the biggest social media company in the world. Its 3.2 billion user base means that the firm is the go-to platform for advertisers. Meta Platforms, Inc. (NASDAQ:META)’s dominance in social media advertising has enabled the firm to accumulate sizable resources which enable it to develop leading edge technologies such as artificial intelligence. As of the latest quarter, the firm had $32 billion in cash and equivalents. These allow it to establish sizable data centers to train AI, and Meta Platforms, Inc. (NASDAQ:META) is one of the few firms in the world that has developed its foundational AI model. Called Llama, it allows the firm to provide AI software to others to build their products. It also enables Meta Platforms, Inc. (NASDAQ:META) to blend AI into its products for advertisers by enabling them to use AI for features such as ad campaigns and customer support. It also enables the firm to provide AI features, such as image editing, to users with the hope of monetizing it in the future.

Polen Capital mentioned Meta Platforms, Inc. (NASDAQ:META) in its Q2 2024 investor letter. Here is what the fund said:

“Meta Platforms delivered robust results in the period, with revenue growth accelerating in the first quarter. However, revenue comparisons for Meta will become more difficult from here, and its guidance for 2Q revenue fell below market expectations. After the company’s “year of efficiency,” where it cut costs in its core business, management is now indicating another ramp-up in GenAI and metaverse spending, spurring concerns about future profit margins. Metaverse spending, by our calculations, is now over $20 billion per year with little to no expected return on the foreseeable horizon.”