Harvard University Stock Portfolio: Top 10 Stock Picks

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

Harvard Management Company’s Stake: $681.4 million

Meta Platforms, Inc. (NASDAQ:META) is a leading technology company known for its popular products, including Facebook, Instagram, and WhatsApp, as well as its advancements in AR/VR technology.

In recent months, Meta Platforms, Inc. (NASDAQ:META) has leveraged its expertise in artificial intelligence and augmented reality, launching its first AR glasses, Orion, in September. Additionally, the company also introduced its most affordable mixed-reality headset, the Meta Quest 36.

On November 13, Monness Crespi Hardt updated its outlook for Meta Platforms, Inc. (NASDAQ:META), raising its price target to $650 from $620, while maintaining a Buy rating on the stock. The firm noted Meta’s strong performance relative to Alphabet Inc. over the past year, highlighting a market preference for META shares. The firm now offers a more favorable view of Meta’s prospects.

Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q2 2024 investor letter:

“We are pleased to report that Meta Platforms, Inc. (NASDAQ:META), our largest position in the fund, has delivered a remarkable performance, +450% since our November 2022 note. Our investment in Meta dates back to 2018, with an average cost basis of approximately $172 per share. Today, the stock trades around $535, reflecting a 3x return over the six-year holding period, equating to a 20% annualized return.

We would like to remind you that achieving these types of returns is never a straight path. From time to time, we might experience volatility — that’s simply part of the investment journey. In fact, wealth creation and volatility go hand in hand. There’s no escaping it; it’s the “price of admission” the market demands. If you take a look at the chart below, you’ll notice the drawdowns META stock has faced over the years, with 2022 standing out as a particularly challenging period, where the stock saw a 75% drop….. ” (Click here to read the full text)

While we acknowledge the potential of META, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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