5 Best American Stocks To Buy In 2024

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

Number of Hedge Fund Holders: 242

Meta Platforms, Inc. (NASDAQ:META) ranks 2nd on our list of the best American stocks. On February 1, Meta Platforms, Inc. (NASDAQ:META) declared its first-ever quarterly dividend of $0.50 per share dividend. The dividend is distributable on March 26, to shareholders on record as of February 22. Meta also announced a $50 billion increase in share repurchase authorization.

According to Insider Monkey’s fourth quarter database, 242 hedge funds were bullish on Meta Platforms, Inc. (NASDAQ:META), compared to 234 funds in the prior quarter. Chase Coleman’s Tiger Global Management is one of the biggest stakeholders of the company, with 7.4 million shares worth $2.6 billion. 

Baron Fifth Avenue Growth Fund stated the following 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.”