Fred Alger Management, an investment management company, released its “Alger Spectra Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. US equities posted positive results in the third quarter with the S&P 500 Index rising 5.89%. Against this backdrop, the fund’s Class A shares underperformed the Russell 3000 Growth Index in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Alger Spectra Fund highlighted stocks like Meta Platforms, Inc. (NASDAQ:META), in the third quarter 2024 investor letter. Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. The one-month return of Meta Platforms, Inc. (NASDAQ:META) was -0.40%, and its shares gained 65.60% of their value over the last 52 weeks. On November 20, 2024, Meta Platforms, Inc. (NASDAQ:META) stock closed at $565.52 per share with a market capitalization of $1.428 trillion.
Alger Spectra Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q3 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META) operates the world’s largest social network, with over 3 billion monthly active users. The company generates more than 95% of its revenue from advertising, evenly split between North America and international markets. During the quarter, shares contributed to performance following the release of strong fiscal second quarter operating results, with revenues and earnings beating analyst estimates. Management also raised their fiscal 2024 revenue guidance, citing improved advertising monetization. CEO Mark Zuckerberg stated that AI has played a key role in these successes, as the company is leveraging AI to enhance targeting, measurement, ranking, and ad delivery. Higher user engagement, driven by video ranking, content recommendations, and single video views, has also supported growth. Additionally, the optimization of ad placements within videos and automation of ad campaigns are further boosting monetization.”
Meta Platforms, Inc. (NASDAQ:META) is in third position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 235 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the third quarter which was 219 in the previous quarter. While we acknowledge the potential of Meta Platforms, Inc. (NASDAQ:META) as an investment, our conviction lies in the belief that 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 as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Meta Platforms, Inc. (NASDAQ:META) and shared the list of trending AI stocks on latest ratings and news. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.