We recently published a list of the 12 Reddit Stocks with High Potential. In this article, we are going to take a look at where Meta Platforms Inc. (NASDAQ:META) stands against other Reddit stocks with high potential.
On April 15, Monica Guerra, Morgan Stanley Wealth Management Head of US Policy, joined ‘Closing Bell Overtime’ on CNBC to discuss how investors should avoid knee-jerk reactions when it comes to volatility. Monica Guerra pointed out the significance of focusing on President Trump’s statements, as they contribute to market volatility despite their mixed and unclear nature. She acknowledged that deciphering his comments is challenging because they lack clarity but staying attentive to both presidential statements and congressional actions is still crucial. She stressed that policy certainty might emerge once Congress finalizes the budget, which is expected around August this year.
She also emphasized that while the day started positively with markets up by 0.79%, the situation otherwise remains uncertain. She reminded clients that the 90-day reprieve on tariffs is not the end of the story and the ongoing studies on semiconductors could lead to additional pressures related to tariffs and market volatility. Guerra noted that tariff revenues are being considered as funding sources for tax cuts and this interplay between tariffs and taxes could influence market volatility. On discussing future developments in tariff policy, she mentioned that more than 70 countries have approached President Trump in attempts to renegotiate the universal 10% tariff and reciprocal tariffs. She cautioned that even if reciprocal tariffs are eliminated and only the universal tariff remains, additional increases could be highly inflationary. China’s effective tariff rate is already at 145% and adding reciprocal tariffs could push inflationary pressures further.
Guerra advised clients against reacting impulsively to such news and encouraged them to focus on long-term investment goals.
Our Methodology
We sifted through Reddit threads to make a list of the top stocks with the highest analysts’ upside potential (at least 30%) as of April 15. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A team of developers working in unison to create the company’s messaging application.
Meta Platforms Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Average Upside Potential as of April 15: 40.17%
Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share with friends and family through mobile devices, personal computers, VR and mixed reality headsets, AR, and wearables. It operates through two segments: Family of Apps (FoA) and Reality Labs (RL). It was formerly known as Facebook Inc. until October 2021.
Meta’s total FoA revenue surged by 21% in Q4 2024. Notable, ad revenue for FoA alone rose by 21% as well. FoA recorded $47.3 billion in Q4 revenue, while FoA ad revenue was $46.8 billion in the same quarter. The total number of ad impressions also increased by 6%, and the average price per ad rose by 14%. Meta is further improving its revenue performance through better monetization efficiency.
On April 10, Thomas Champion from Piper Sandler maintained a Buy rating on the company with a $610 price target. This sentiment was fueled by performance checks with an Ad Buyer and an evaluation of Meta’s upcoming financial performance. Meta now anticipates generating $42.5 to $45.5 billion in revenue in the second quarter of the year. This will be a 9% to 16.5% improvement year-over-year.
Nightview Capital highlighted the company’s strong growth potential, due to its AI leadership with Llama model, advertising ecosystem, and AR capabilities. It stated the following regarding Meta Platforms Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Core Opportunity: Meta Platforms, Inc.’s (NASDAQ:META) platforms—Instagram, Facebook, WhatsApp, and Messenger—reach nearly half the world’s population daily, making it one of the most powerful advertising ecosystems globally. With investments in AI and augmented reality (AR), we believe Meta is also creating significant optionality for long-term growth.
Competitive Advantage: Thriving Core Platforms: In Q3, we saw Meta achieve a 23% YoY revenue growth,—a testament to strong user engagement across its ecosystem. The advertising landscape as a whole continues to evolve and we believe Meta’s existing platforms offer a defined advantage in this new world. Existing platforms in the age of AI continue to be the most powerful indicator of future success in our opinion.
AI Leadership: Meta’s AI capabilities and the Llama AI model are driving efficiency and product innovation. In our view, these assets have been under-appreciated by the market while enhancing Meta’s ability to further scale and innovate its leading advertising business…” (Click here to read the full text)
Overall, META ranks 8th on our list of the 12 Reddit stocks with high potential. While we acknowledge the growth potential of META, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
