Philippe Laffont Stock Portfolio: Top 10 Stock Picks

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

Coatue Management’s Stake Value: $2.15 billion

Number of Hedge Fund Holders: 262

Meta Platforms, Inc. (NASDAQ:META)’s investments in AI are poised to fuel significant revenue growth throughout its platforms. AI-driven advertising solutions can improve ad targeting, enhance user experience, and result in increased advertiser return on investment (ROI). Furthermore, the development of generative AI tools can create new possibilities for content creation and user engagement. These tools can result in more user time spent on Meta Platforms, Inc. (NASDAQ:META)’s platforms, resulting in significant opportunities for advertising and new revenue streams via AI-powered services.

Meta Platforms, Inc. (NASDAQ:META)’s new products and AI-driven services also provide strong monetization opportunities. The next growth opportunity is expected to be driven by Threads, its text-based conversation app. It can become a valuable advertising channel, mainly for brands that focus on engaging in real-time conversations with consumers. AI-driven services can establish new revenue streams in the broader enterprise market. Such services can span from AI-powered customer service solutions to advanced analytics tools for businesses.

Hardman Johnston Global Advisors, an investment management company, released a Q3 2024 investor letter. Here is what the fund said:

“During the quarter, we initiated one new position in Meta Platforms, Inc. (NASDAQ:META) and had no liquidations. Management at Meta has effectively addressed concerns about investment efficiency by shifting resources from Reality Labs towards broader AI initiatives with a clearer path to profitability. We believe management has successfully articulated the benefits of this strategy, highlighting how AI is driving user engagement and advertiser productivity. This, in turn, fuels continued revenue momentum and increases the likelihood of positive earnings surprises in the future. Additionally, the parent company of the social media platform, Facebook, has recently taken positive steps to enhance safety, which suggests to us a shift towards a more proactive and responsive approach to addressing important potential challenges and concerns. Weak oversight over data privacy protection was a key reason why we sold the position in the portfolio back in 2021. Removing this governance overhang allows us to feel comfortable to enter back into the stock at a time when we believe it is poised for strong earnings growth going forward.”