We recently published a list of Top 12 Tech Stocks to Buy According to Billionaire Ken Fisher. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against other top tech stocks to buy according to billionaire Ken Fisher.
Under the umbrella of Fisher Asset Management, Billionaire Ken Fisher has maintained a positive stance on technology stocks, particularly those within the “Magnificent Seven.” While emphasizing the strong performance of these large-cap growth companies, Fisher emphasizes that the ongoing bull market extends beyond just these high-profile names. According to him, the 2024 rally has been broader than it is generally perceived, with growth stocks, especially in tech and communication services, consistently outperforming their value and small-cap counterparts.
Ken Fisher’s discussion revealed a notable trend: tech stocks have tended to outperform during market upswings and underperform during downturns. This pattern, evident throughout the statistics of 2024, strengthens the theory that if investors believe in a continuing bull market, technology stocks will likely remain strong performers. Although they may not always lead the market consistently or across every metric, according to historical evidence, their overall performance consistently outshines most other sectors and groupings.
Fisher’s perspective suggested that while technology stocks may not dominate the market indefinitely, their performance still serves as a bellwether for broader market sentiment. He stated that investing in these companies is not about expecting perfection but recognizing that in bullish environments, they tend to deliver higher returns. At the same time, he warned against focusing too narrowly on these names, as the broader growth category spanning across sectors is also poised to benefit from favorable market conditions.
In summary, Fisher Asset Management’s investment approach shows confidence in the long-term prospects of technology stocks. Though Ken Fisher concedes there are no certainties in the market, he points to a clear directional relationship: when the market rises, these stocks tend to rise more; when it falls, they decline more. For Fisher, this reinforces the strategic value of maintaining strong exposure to tech-driven growth stocks in a bullish environment.
Our Methodology
We searched through Fisher Asset Management’s Q4 2024 13F filings to identify the top tech stocks that the firm is invested in. From the resultant data, we ranked the technology equities based on his hedge fund’s stake value in each holding. Additionally, we have mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
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).
Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders as of Q4: 262
Fisher Asset Management’s Equity Stake: $3.91 Billion
The parent company of Facebook, WhatsApp, Instagram, Messenger, Meta Platforms, Inc. (NASDAQ:META) delivered strong financial performance in 2024, with total revenue reaching $164.5 billion, growing 22% year-over-year. This growth was primarily driven by the strength of its family of apps, contributing $162.4 billion of the total revenue, up from $133 billion the previous year. The company reported a total profit of $62.4 billion, marking a 59% year-over-year increase. Meta’s workforce expanded by 10% in 2024, ending the year with 74,067 employees, reflecting its ongoing strategic growth and investment in innovation.
The fourth quarter alone accounted for 29.4% of Meta Platforms, Inc. (NASDAQ:META)’s annual revenue, generating $48.4 billion in revenue and over $20.8 billion in profit for the period. Meta’s strong Q4 performance included a 21% year-over-year revenue increase, surpassing analyst expectations, while earnings per share (EPS) rose by 50% to $8.02, surpassing the forecasted $6.76. Despite the company’s impressive financial metrics, its Reality Labs division, which focuses on virtual and augmented reality technologies, recorded an operating loss of $5 billion on revenue of nearly $1.1 billion. The company’s expanding influence on emerging technologies, particularly AI integration across its platforms, positions it as a continued leader in the tech sector.
By the end of Q4 2024, 262 hedge funds held stakes in Meta Platforms, Inc. (NASDAQ:META), up from 235 in the previous quarter. Hedge fund holdings in the company surged to approximately $59.4 billion, according to Insider Monkey’s database. This increase reflects investor belief in Meta’s strategic vision and its ability to deliver long-term shareholder value through sustained innovation, robust earnings growth, and a dominant presence in digital advertising.
With over 6.6 million shares reported in its 13F holding, Ken Fisher holds a stake of approximately $3.90 billion in Meta Platforms, Inc. (NASDAQ:META), making it tenth on the list of top tech stocks to buy according to the billionaire.
Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on an investment, accounting for the timing and magnitude of cash flows over the holding period.
For META, our 22% IRR aligns closely with the company’s compounded growth in earnings per share (EPS) and free cash flow per share during the 6 years holding period.
Looking ahead, Meta is expected to grow its revenues, earnings, and free cash flow per share at mid-teens rates over the next two years. There’s a good possibility that it could exceed these estimates, considering the breadth of growth initiatives currently in place, such as advancements in Al, monetization of Reels, expansion into business messaging, and the ongoing development of the metaverse…” (Click here to read the full text)
Overall, META ranks 10th on our list of top tech stocks to buy according to billionaire Ken Fisher. While we acknowledge the potential of tech companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher 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 this 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.
