4. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders as of Q4: 262
SRS Investment Management’s Equity Stake: $495.33 Million
Meta Platforms, Inc. (NASDAQ:META) delivered a strong financial performance in 2024, generating $164.5 billion in revenue, a 22% increase over 2023. The company reported a total profit of $62.4 billion, reflecting a significant 59% year-over-year surge despite rising expenses. Meta’s family of apps—including Facebook, Messenger, Instagram, and WhatsApp—accounted for $162.4 billion in revenue, up from $133 billion the previous year. The company’s workforce also grew by 10%, reaching 74,067 employees by the end of 2024, underscoring its ongoing expansion efforts.
The fourth quarter contributed 29.4% of Meta Platforms, Inc. (NASDAQ:META)’s full-year revenue, totaling $48.4 billion, with profits exceeding $20.8 billion for the period. The company’s virtual and augmented reality division, however, posted a $5 billion operating loss despite generating nearly $1.1 billion in revenue. Meta’s Q4 revenue growth of 21% year-over-year surpassed analyst expectations, and earnings per share (EPS) soared 50% to $8.02, far exceeding the forecasted $6.76. Investor interest in the company remained high, with hedge fund holdings increasing to approximately $59.4 billion, reflecting confidence in Meta’s strategic investments in AI and digital advertising.
Despite its strong fundamentals, Meta Platforms, Inc. (NASDAQ:META)’s stock has experienced volatility, heading for a fifth consecutive negative week—matching its longest losing streak since October 2022. Since its record close on February 14, Meta’s share price has declined by 20%, reflecting market fluctuations. However, with continued innovation in AI and advertising technology, the company remains well-positioned for long-term growth and industry leadership, making it a compelling investment for institutional and retail investors alike.
Investor confidence in Meta Platforms, Inc. (NASDAQ:META) remains high, driven by increasing institutional backing and growing hedge fund interest. By the end of Q4 2024, 262 hedge funds had invested in the company, with total holdings rising to approximately $59.4 billion—up from 235 funds in the previous quarter, according to Insider Monkey’s database. Meta’s strong financial performance, continued advancements in AI, and dominance in digital advertising reinforce its long-term growth potential.
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)
