5 Best Chatbot Stocks to Buy As ChatGPT Gains Market Share

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

Number of Hedge Fund Holders: 194

In the AI race where giants like Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Amazon.com, Inc. (NASDAQ:AMZN) are running, how can Meta Platforms, Inc. (NASDAQ:META) stay behind? Mark Zuckerberg made headlines recently when he announced that Meta Platforms, Inc. (NASDAQ:META) is releasing its own AI-based language model, called LLaMA, which stands for Large Language Model Meta AI. Like other AI language models, LLaMA takes a sequences of words as an input and predicts a next word to recursively generate text. Meta Platforms, Inc. (NASDAQ:META) said that its language model was trained from 20 different languages.

As of the end of the fourth quarter of 2022, 194 hedge funds had stakes in Meta Platforms, Inc. (NASDAQ:META).

ClearBridge Large Cap Value Strategy made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q4 2022 investor letter:

“We also initiated and subsequently added to a position in Meta Platforms, Inc. (NASDAQ:META) following a 70% year-to-date decline in its shares. Meta shares derated materially in 2022 as revenue growth slowed due to tough comps versus a strong e-commerce environment during COVID-19, privacy changes put in place by Apple, and the meteoric rise of rival social media platform TikTok. The company’s valuation declined to a compelling 10x consensus 2023 earnings, which in our view materially undervalued its long-term earnings and free cash flow generation potential. Despite current revenue headwinds, we believe Meta’s massive platform reach should allow it to continue to attract engagement, a metric that appears to be accelerating with the launch of its short-form video product “Reels”. The company’s ability to target potential customers is also set to improve, driven by large investments in artificial intelligence and improved analytical tools to navigate Apple’s privacy policies. We also welcome the company’s increasing financial discipline, including reining in both capex and opex, which should sustain the company’s high underlying profitability and gain back investor confidence. Meta has also done a good amount of work to improve its social media platforms Facebook and Instagram and has best-in-class practices designed to reduced hate speech and improve privacy.”