Wall Street Picked These 5 AI Stocks for 2024

3. Meta Platforms Inc (NASDAQ:META)

Number of Hedge Fund Holders: 242
YTD Performance as of March 7, 2024: +41.4%

Meta Platforms Inc (NASDAQ:META) runs social media and entertainment platforms with AI, which helps the company improve its ads and boost revenue and profit.

According to Wolfe Research analyst Deepak Mathivanan integration of generative AU into Meta Platforms Inc (NASDAQ:META)’s universe should lead to more people spending on the ecosystem. He wrote in a research note.

“META is one of the handfuls of companies in our coverage universe where the advancements in Gen AI recently can have a significant impact on financials in the medium term. Incremental revenues from new engagement and ad inventory are the most direct benefit,”

As of Q4 2023, 242 out of the 933 hedge funds polled by Insider Monkey had bought and owned the firm’s shares. Meta Platforms (NASADQ:META)’s largest shareholder in the fourth quarter remained Ken Griffins Citadel Investment Group which owned 19.87 million shares worth $7 billion.

Here is what Baron Fifth Avenue Growth Fund stated regarding Meta Platforms, Inc. (NASDAQ:META) in its fourth quarter 2023 investor letter:

“Improving unit economics: Many of our companies were able to significantly expand margins during 2023 even though revenue growth decelerated for some of them, showcasing the power of their capital-light, recurring revenue business models, and their increased focus on efficiency. One public example that was at least partially responsible for driving other companies (especially in IT) to become more efficient is X (formerly Twitter), which reduced headcount by a whopping 80% after Elon Musk’s acquisition, despite growing user engagement. Another well-known example is Meta Platforms, Inc. (NASDAQ:META), for which cost controls and margin expansion this year have been a key reason behind the stock’s outperformance (Mark Zuckerberg called 2023 the year of efficiency). Other less well-known examples include the commerce platform, Shopify, which is expected to expand its operating margins from breakeven to 10.9% in 2023 thanks to the sale of its money-losing logistics business, and a 23% reduction in its workforce. What is even more impressive is that the company was able to accelerate innovation velocity (with a lower headcount) as well as improve sales and marketing productivity.”

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