UBS’ Top Tech Based Disruptive Stocks For 2030: Top 29 Stocks

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

Number of Hedge Fund Holders In Q2 2024: 219

Meta Platforms, Inc. (NASDAQ:META) is the world’s largest social media company. It owns and operates Facebook, Instagram, and WhatsApp. As of March, 3.2 billion users were using its products to provide Meta Platforms, Inc. (NASDAQ:META) with a wide moat in the social media industry. This moat is the firm’s bread and butter since the vast majority of its revenue comes through allowing advertisers to target its users. Its dominance in social media has enabled Meta Platforms, Inc. (NASDAQ:META) to amass significant resources, as evident by the firm’s $32 billion in cash and equivalents. In turn, these resources allow it to establish a foothold in emerging industries, the latest example of which is artificial intelligence. Meta Platforms, Inc. (NASDAQ:META) is among the few firms in the world with access to a foundational AI model, and the firm is using it to improve advertisers’ experience on its platform. It is also targeting its users with AI products, and the success of these initiatives depends on Meta Platforms, Inc. (NASDAQ:META)’s ability to monetize its AI offerings.

Polen Capital mentioned Meta Platforms, Inc. (NASDAQ:META) in its Q2 2024 investor letter. Here is what the fund said:

“Meta Platforms delivered robust results in the period, with revenue growth accelerating in the first quarter. However, revenue comparisons for Meta will become more difficult from here, and its guidance for 2Q revenue fell below market expectations. After the company’s “year of efficiency,” where it cut costs in its core business, management is now indicating another ramp-up in GenAI and metaverse spending, spurring concerns about future profit margins. Metaverse spending, by our calculations, is now over $20 billion per year with little to no expected return on the foreseeable horizon.”