Jim Cramer Was Right About These 5 Stocks

1. Meta Platforms Inc (NASDAQ:META)

Number of Hedge Fund Investors: 242

Cramer’s Recommendation: Buy

YTD Performance in 2024: +40%

During the start of 2024, when skepticism around the Magnificent Seven stocks was gripping the markets, Cramer had categorically told investors that they should not “forget” Meta Platforms Inc (NASDAQ:META) and they would ignore stocks like Meta Platforms Inc (NASDAQ:META) at their own risk.

Since the start of 2024, Meta Platforms Inc (NASDAQ:META) shares have gained about 40% through February 26.

Insider Monkey’s analysis of 933 hedge fund portfolios as of the end of 2023 shows that Meta Platforms Inc (NASDAQ:META) was among the most popular stocks owned by smart money managers. A total of 242 hedge funds in Insider Monkey’s database had stakes in Meta Platforms Inc (NASDAQ:META).

Baron Fifth Avenue Growth Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its fourth quarter 2023 investor letter:

“Improving unit economics: Many of our companies were able to significantly expand margins during 2023 even though revenue growth decelerated for some of them, showcasing the power of their capital-light, recurring revenue business models, and their increased focus on efficiency. One public example that was at least partially responsible for driving other companies (especially in IT) to become more efficient is X (formerly Twitter), which reduced headcount by a whopping 80% after Elon Musk’s acquisition, despite growing user engagement. Another well-known example is Meta Platforms, Inc. (NASDAQ:META), for which cost controls and margin expansion this year have been a key reason behind the stock’s outperformance (Mark Zuckerberg called 2023 the year of efficiency). Other less well-known examples include the commerce platform, Shopify, which is expected to expand its operating margins from breakeven to 10.9% in 2023 thanks to the sale of its money-losing logistics business, and a 23% reduction in its workforce. What is even more impressive is that the company was able to accelerate innovation velocity (with a lower headcount) as well as improve sales and marketing productivity.”

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