Goldman Sachs’ List Of Stocks That Hedge & Mutual Funds Love & Hate: 28 Stocks On The Mutual and Hedge Funds Radar

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

Number of Hedge Fund Holders In Q2 2024: 219

Category: Most popular with HFs and underweight among mutual funds

Meta Platforms, Inc. (NASDAQ:META) is another mega cap technology giant. The firm is among a handful of companies in the world which have access to foundational AI models and sufficient cash resources to fund development. Meta Platforms, Inc. (NASDAQ:META) had $32 billion in cash and equivalents as of its latest quarter. The firm enjoyed a 3.2 billion user base as of March, and this means that its primary line of revenue comes from advertisers. Subsequently, Meta Platforms, Inc. (NASDAQ:META) is benefiting from its ability to push AI features to advertisers. The firm is enabling advertisers to rely on AI for customer support and marketing. Additionally, Meta Platforms, Inc. (NASDAQ:META)’s sizeable user base also creates the potential to provide consumers with AI features. Some features that the firm offers are photo editing, imaging editing, and others. Consequently, Meta Platforms, Inc. (NASDAQ:META) has one of the broadest AI platforms in the industry.

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.”