Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth

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

Growth Investment Ratio: 83%

Number of Hedge Fund Holders: 219

Meta Platforms, Inc. (NASDAQ:META) is the world’s biggest social media company. Courtesy of its social media network Facebook, the firm can boast about having a whopping 3.2 billion users under its wing. This massive user base is also at the center of Meta Platforms, Inc. (NASDAQ:META)’s hypothesis. It makes the firm indispensable to advertisers who have no choice but to run ads on its platform if they want to capture sizable users. The scale has enabled Meta Platforms, Inc. (NASDAQ:META) to amass significant resources, as evident through its $156 billion in trailing twelve-month revenue and $43.9 billion in cash and equivalent. The firm has used these to create a foothold in the AI industry by developing the Llama foundational AI model. Unlike other big tech players which are gearing their AI products towards cloud computing, Meta Platforms, Inc. (NASDAQ:META) is targeting everyday consumers and advertisers on its platform. The billions it has invested in AI means that investors are on the watch-out for profit generation.

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.”