1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 219
Meta Platforms, Inc. (NASDAQ:META) remains a leading force in social media with its major platforms: Facebook, Instagram, and WhatsApp. Recent improvements to Instagram’s shopping features and Facebook’s targeted advertising have boosted user engagement and attracted more advertisers. Meta Platforms, Inc. (NASDAQ:META)’s vast user base continues to be a key driver for advertising revenue. Additionally, Meta Platforms, Inc. (NASDAQ:META) is heavily investing in developing the metaverse, aiming to create innovative virtual environments and experiences.
Jim Cramer highlighted that Mark Zuckerberg’s Meta Platforms, Inc. (NASDAQ:META), delivered exceptional sales, earnings, and forecasts, despite a market downturn. Meta Platforms, Inc. (NASDAQ:META) exceeded expectations and is leveraging advanced AI technology powered by NVIDIA Corporation (NASDAQ:NVDA) chips. (see 33 Most Important AI Companies You Should Pay Attention To).
“We had two tech companies that delivered fantastic sales, earnings, and forecasts. This is the magic formula that makes people comfortable buying even amid a market downturn. One of these companies is Mark Zuckerberg’s Meta Platforms. Both companies exceeded expectations and provided impressive forecasts. Interestingly, both are leveraging AI powered by the latest Nvidia chips. Meta, in particular, shared an impressive story about how it uses AI to design and enhance programs, delivering excellent returns on investment. For advertisers, this combination is unbeatable.”
Meta Platforms, Inc. (NASDAQ:META)’s strategy focuses on advancing its position in the emerging metaverse market with innovations like the Meta Quest 3, a cutting-edge VR headset, and Horizon Worlds, a social VR platform. These developments aim to drive long-term revenue growth through virtual goods and experiences. Meta Platforms, Inc. (NASDAQ:META) is also strengthening its technological capabilities and market presence through strategic acquisitions, such as Within, a VR fitness company, and Kustomer, a customer service platform.
Analysts expect that Meta Platforms, Inc. (NASDAQ:META)’s investments in technology, including AI-driven tools for better content moderation and personalized advertising, will boost future earnings.
While we acknowledge the potential of Meta Platforms, Inc. (NASDAQ:META), our conviction lies in the belief that under the radar 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 NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
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