Tech Billionaire Chase Coleman’s Top 10 Stock Picks

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1. Meta Platforms Inc. (NASDAQ:META)

Shares held by Tiger Global: 7.47 million

Value of position: $4.27 billion

A dominant player in the social media and technology sectors, Meta Platforms Inc. (NASDAQ:META) is widely recognized for its flagship platforms Facebook, Instagram, and WhatsApp. The company generates revenue primarily through targeted ads, using AI personalization to boost user engagement and optimize ad performance. With a 19% year-over-year revenue increase in Q3 2024, Meta continues to demonstrate strong financial momentum, driven by a higher average ad price (+11% YoY) and operating margin growth to 43%.

Earnings per share (EPS) for 2024 are estimated at $22.6, a significant jump from $14.87 the previous year, with forward-looking estimates for 2025 reaching $25.33. Despite its heavy spending on AI and the metaverse, Meta’s profitability remains solid, with revenue for 2024 projected at $162.97 billion, up 20.8% from 2023.

Meta Platforms Inc. (NASDAQ:META) is now focusing on next-gen internet infrastructure, planning a $10 billion investment in a global fiber optic subsea cable. While still facing some regulatory challenges in the social media domain, and high capital expenditures for the Reality Labs division and AI in general, Meta remains a compelling investment. It is a top choice in Tiger Global Management portfolio, with shares of approximately $4.3 billion in value, accounting for 18.23% of the portfolio.

While we acknowledge the potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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 the cheapest AI stock.

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