Long-Term Stock Portfolio: 15 Best Stocks for 15 Years

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

10-Year Revenue Growth: ~29.4%

Number of Hedge Fund Holders: 262

Morningstar believes that Meta Platforms, Inc. (NASDAQ:META)’s stock is materially undervalued after the company released Llama 4 LLM, which is its next-generation large language model. Considering that the leading AI labs continue to invest billions in frontier models, Morningstar expects that the models will be commodified over time, with all leading-edge models providing similar capabilities. Over time, the firm expects that the current model-based competition in AI can lead to distribution and monetization-based competition.

With the shifting of competitive dynamics of AI, Meta Platforms, Inc. (NASDAQ:META), given its unrivalled user and creator base, could effectively monetize and distribute its GenAI investments, says Morningstar. The firm expects that Meta Platforms, Inc. (NASDAQ:META)’s GenAI models will be used by creators and advertisers to create hyper-personalized content for users. This can benefit user engagement and monetization. Elsewhere, Jefferies reiterated a ‘Buy’ rating on the company’s stock with the price objective of $600.00. The company continues to effectively utilize its abundant data and computational resources, providing a competitive edge, says the analyst.

Nightview Capital, an investment management company that concentrates exclusively on publicly traded equity strategies, released Q4 2024 investor letter. Here is what the fund said:

“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)