5 Best Blue Chip Stocks To Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 220

Mark Zuckerberg started a ruthless job-cutting spree earlier this year that is still ongoing. Media reports suggest Meta Platforms, Inc. (NASDAQ:META) is undergoing another, and probably its final, round of layoffs that would affect 10,000 roles. This would take Meta Platforms, Inc. (NASDAQ:META)’s headcount to the mid-2021 levels. Zuckerberg’s strategy to spur growth at the company is working, as evident from its most recent earnings report.

At the end of 2022, 194 hedge funds tracked by Insider Monkey had stakes in Meta Platforms, Inc. (NASDAQ:META). This figure jumped to 220 as of the end of March as more hedge funds initiated stakes in Meta Platforms, Inc. (NASDAQ:META).

Artisan Value Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q1 2023 investor letter:

“Our top contributors in Q1 were Meta Platforms, Inc. (NASDAQ:META), Warner Bros Discovery (WBD) and FedEx. Following sharp declines in 2022, shares of Meta Platforms have more than doubled since their early November 2022 lows. Last year’s drawdown created a highly favorable risk-reward, which we took advantage of by adding to our position. Management has wisely, in our view, recalibrated its spending plans to focus on profitability amid a weaker advertising environment, increased TikTok competition and Apple’s privacy changes. While investors got ahead of themselves back in 2021, extrapolating pandemic growth rates into the future, Meta is still a highly successful enterprise generating over $120 billion of revenue annually on a run-rate basis and has more than $40 billion in cash on its balance sheet to help it navigate its future course. Recent usage and engagement trends for Facebook and Instagram have been positive, and Reels—Meta’s answer to TikTok—is gaining traction.”