In this article, we will take a look at the ChatGPT stock advice 5 recent stock recommendations. To see more such companies, go directly to ChatGPT Stock Advice: 15 Recent Stock Recommendations.
5. Meta Platforms, Inc. (NASDAQ:META)
Morgan Stanley’s Brian Nowak recently said in a note that investors should pay attention to Meta Platforms, Inc. (NASDAQ:META)’ Reels as the product continues to gain traction. The analyst cited a survey of 2,000 Americans aged 16 and up. About 79% of Instagram users in the survey said they are using Reels, up from 74% in May, and 36% are on Reels daily versus 34% in May.
ChatGPT also believes Meta Platforms, Inc. (NASDAQ:META) is one of the stocks to buy for long-term gains. A total of 225 hedge funds had stakes in Meta Platforms, Inc. (NASDAQ:META) as of the end of the second quarter of 2023.
Rowan Street Capital made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q3 2023 investor letter:
“Meta Platforms, Inc. (NASDAQ:META): $550 billion rebound in market cap in less than a year.
A deep dive into what is driving the optimism for the stock.
It’s been exactly 11 months since we published an article: “Does a $750 billion decline in Meta’s market cap make sense?” META is up +240% since then compared to the S&P 500 advance of +13.5% over the same time period. We will examine what drove this abnormal return. But first, we can’t help but wonder: How is it possible for a trillion dollar company to first drop -75% to $268 billion in market cap and then skyrocket +250% to over $800 billion in market cap all in just less than 2 years. We are not talking about some micro-cap company here. META is the 7th largest company in the world. It is very well-known to everybody and is covered by 45+ analysts.
Are the markets really efficient when you witness this kind of a phenomenon?
Our belief is that the markets have actually become a lot less efficient over the short term with the proliferation of the internet, smart-phones, social media and effortless access to information. This is counterintuitive to what the academics teach us, but that is the way it has worked in reality. We will spare you further discussion on the efficiency of the markets as the purpose of this note was to discuss our investment in META. We wanted to share this observation and be clear that we are not exactly complaining here. Part of our job as fund managers is to exploit these market inefficiencies and drive value to the Rowan portfolio over the long run. And over the long run, the markets do a pretty good job in valuing companies…”
4. Alphabet Inc. (NASDAQ:GOOG)
Bank of America’s Justin Post recently said in a note that Google will post strong Q3 results later this month due to strengths in YouTube, search and artificial intelligence. Post, who has a $146 price target on Alphabet Inc. (NASDAQ:GOOG), said:
“We remain constructive on Google and expect continued [second-half] acceleration in Search and YouTube growth driven by macro improvements, new advertiser AI tools, ramping shorts monetization, and FX.”
Oakmark Global Select Fund made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2023 investor letter:
“Alphabet Inc. (NASDAQ:GOOG)(U.S.) was the top contributor for the fiscal year. Alphabet reported multiple strong sets of earnings releases over the past year, and its results generally exceeded consensus estimates across key metrics. Most recently, search revenue growth accelerated from 5% to 6.5% sequentially in the second quarter, a notable development given lingering economic uncertainty and broader advertising weakness. Cloud growth remained at 30%, stable versus the previous quarter, despite continued headwinds from customers optimizing cloud usage. Margin progression also continued, and cloud margins reached 5%. CFO Ruth Porat emphasized that the largest impact from the company’s cost[1]saving initiatives will not be felt until 2024. YouTube continues to prioritize its Shorts segment, which is experiencing strong viewership growth. Although this is a near-term revenue headwind, we believe Shorts’ monetization will accelerate over time. Addressing the year’s hottest topic, CEO Sundar Pichai said Alphabet is an “AI-first company” that is “extremely well-positioned as AI reaches an inflection point.” At Alphabet’s annual developer conference in May, it showcased an impressive array of new AI-powered consumer tools to be rolled out over the course of the year. Investors reacted positively to these presentations, which highlighted the company’s impressive innovations in AI technologies. Overall, we believe the company is positioned well to reap the benefits of the scale of its search business and years of its investment into AI capabilities. We also appreciate that the company is undergoing a transformation on how it views cost discipline and efficiency.”
3. Microsoft Corporation (NASDAQ:MSFT)
Microsoft Corporation (NASDAQ:MSFT) ranks 3rd in our list of ChatGPT stock advice and recent stock recommendations. Microsoft Corporation (NASDAQ:MSFT) is also loved by hedge funds. It was the most popular stock among the 910 hedge funds tracked by Insider Monkey as 300 hedge funds reported owning stakes in Microsoft Corporation (NASDAQ:MSFT) as of the end of the June quarter. The biggest stakeholder of Microsoft Corporation (NASDAQ:MSFT) after Bill Gates’ foundation was TCI Fund Management of Chris Hohn which had a $4 billion stake in the company.
ClearBridge Value Equity Strategy made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q2 2023 investor letter:
“We initiated a small position in Microsoft Corporation (NASDAQ:MSFT) during the quarter, which may seem surprising given our concerns about index concentration. However, we seized the opportunity on a compelling entry point below our business value estimate, due to an anticipated acceleration of demand for Microsoft’s Azure cloud business and incremental revenues from integration of Microsoft’s AI Copilot program into its office platform. We believe this could support double-digit growth, while simultaneously solidifying Microsoft’s competitive position as an AI winner. Even as a small position, we believe Microsoft provides a large portfolio construction benefit given low correlation to the rest of the portfolio.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Amazon.com, Inc. (NASDAQ:AMZN) has gained about 53% year to date through October 18. It is one of the “magnificent seven” companies that have been driving the stock market with their huge gains throughout the year.
A total of 278 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Amazon.com, Inc. (NASDAQ:AMZN) as of the end of the June quarter. The biggest stakeholder of Amazon.com, Inc. (NASDAQ:AMZN) was Natixis Global Asset Management’s Harris Associates which owns a $2 billion stake in the company.
White Falcon Capital Management made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2023 investor letter:
“There are comparable narratives involving NU Holdings, Amazon.com, Inc. (NASDAQ:AMZN), and Teck Resources, to name a few holdings from the White Falcon portfolio. Amazon constructed its logistics network and cloud computing infrastructure using yesterday’s currency, but it is poised to capitalize on this network with the inflated dollars of tomorrow. In essence, we believe we hold wonderful businesses with growing revenue streams and potential for operating leverage – all at reasonable valuations.”
1. Apple Inc. (NASDAQ:AAPL)
Apple Inc. (NASDAQ:AAPL) tops the list of the socks recommended by ChatGPT in its latest stock recommendations. In a latest note, Bank of America said that data shows the availability of iPhone 15 basic and Pro models was increasing.
“Over the last week, we saw improvement in [iPhone 15 Pro and Pro Max] availability across all geographies with Europe being the weakest (7% available) The other 4 geographies we track (US, Canada, China, and Asia ex-China) all saw improvements to the 20-30% availability range,” BofA’s Wamsi Mohan said.
Choice Equities Capital Management made the following comment about Apple Inc. (NASDAQ:AAPL) in its second quarter 2023 investor letter:
“Dramatic valuation differences across market cap sizes continue. This has been the case for some time now. Perhaps I have spent too much time discussing these dichotomies, as generally, I feel like if we pick the right stocks and manage market exposures thoughtfully, our equities- oriented portfolio will prosper across various market cycles. However, when markets become as lopsided as they have lately, I feel additional discussion on the market environment is worthwhile, if only to help highlight the opportunities that are available and the likely path forward. I expect future discussions to soon be focused again on our moderately concentrated portfolio. But for now, let’s take one last in-depth look at how far reaching these valuation dichotomies have again become.(Please note: charts that accompany the following can be found in the Appendix.)
Take Apple Inc. (NASDAQ:AAPL) for example. It is the largest stock by market cap, and fairly considered one of the best companies in the world. The company has been extraordinarily successful and improved standards of living everywhere in the process with their ubiquitous products. Along the way, shareholders have been richly rewarded, with shares increasing nearly fourteen-fold over the last ten years while generating an annualized total shareholder return of 31%, including dividends.
On the back of another big quarter for large cap tech, it is now the first stock to surpass the $3T market cap threshold. This makes its weighting in the ~$37T market cap of the S&P 500, ~8%. It also means this one stock’s market cap is larger than that of the entire ~$2.98T market cap of the Russell 2000 index, the first time in history a single stock has outweighed the Russell 2000 – aside from two brief days in September 2020 when Apple’s market cap then accomplished the same…”
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