11 Best Safe Stocks to Buy According to Hedge Funds

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

Number of Hedge funds holding: 262

Forward Dividend: $2.10

Meta Platforms, Inc. (NASDAQ:META) is a multinational technology company that develops social media applications. Dedicated to connecting people and growing businesses, the company has two segments: Family of Apps (FoA) and Reality Labs (RL). While the FoA segment includes Facebook, Instagram, Messenger, and WhatsApp, among other services, the RL offering comprises augmented, mixed, and virtual reality-associated hardware, software, and content.

The market is heavily focused on Advantage+, Meta AI, Threads, and CapEx. While Advantage+ campaigns are signaling strong adoption, with a 70% YoY growth in the past quarter, the Meta AI assistant is anticipated to witness a 1 billion user adoption by the end of the year. A measure taken to bring this vision to reality is the deployment of Meta AI to WhatsApp. Mark Zuckerberg, the CEO of Meta Platforms, Inc. (NASDAQ:META), made the following comment:

“I expect this is going to be the year when a highly intelligent and personalized AI assistant reaches more than 1 billion people, and I expect Meta AI to be that leading AI assistant.”

There hasn’t been any change in the revenue guidance in terms of CapEx since the tariff drama. This could either be due to none of the hyperscalers revising their guidance or because the management thinks that it is not as vulnerable to tariff risks as the ones on the sidelines anticipate. Out of its segments, Reality Labs is the one relatively most exposed to the tariff implications, particularly due to Quest headsets and Ray-Ban Meta smart glasses. However, if we look at their contribution to the total revenue, they still lag behind the other money-making segments of Meta Platforms, Inc. (NASDAQ:META). Thus, the impact isn’t going to be much.

According to the one-year price target of $722.91 by analysts, Meta Platforms, Inc. (NASDAQ:META) is anticipated to witness an upside of around 44%. Additionally, the growth estimates for the next quarter stand at 9.95% for the company, in contrast to the 4.85% estimate for the broader market. From this, we can say that META is definitely the stock when you’re playing safe.