Cantor Fitzgerald’s Top Internet Stocks: Best Stocks To Buy According To $13.2 Billion Firm

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

Number of Hedge Fund Holders In Q2 2024: 219

Share Price Target Upside: 26%

Cantor’s Rating: Overweight

Cantor’s Share Price Target: $660

Meta Platforms, Inc. (NASDAQ:META) is the dominant player in the global social media industry and owns Facebook, Instagram, and WhatsApp. As per Cantor, it is one of the strongest players in the artificial intelligence industry and can capture market share. Meta Platforms, Inc. (NASDAQ:META)’s AI products and services are built on its Llama foundational model – which is also among the few truly open source AI models in the world. Meta Platforms, Inc. (NASDAQ:META) is using Llama to add value for advertisers on its bread and butter platform Facebook, and it is also aiming to target social media users through products such as AI Studio to allow them to create their own AI variants. Cantor believes that Meta Platforms, Inc. (NASDAQ:META) can create AI growth over the next two to three years, and adds that the firm’s fiscal 2025 P/E ratio of 20 implies that investors have factored in the risk of Meta Platforms, Inc. (NASDAQ:META) failing to adequately monetize AI and ad revenue growth slowing down.

Evercore analyst Mark Mahaney shared how Meta Platforms, Inc. (NASDAQ:META) is monetizing AI during a recent talk with CNBC:

“If you look at what happened with Meta Platforms Inc (NASDAQ:META). they went to almost 30% revenue growth, they are growing dollar-wise faster than anybody else that’s because they used AI to rebuild their ad-tech stack because they used AI to rebuild their user interface and get us more engaged, so it actually worked for them.”