5 Best Growth Stocks to Buy According to Marc Majzner’s Clearline Capital

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

Stake Value in Clearline Capital’s 13F Portfolio: $24.34 million

Percentage of Clearline Capital portfolio: 3.14%

Number of Hedge Funds: 184

Based in California, Meta Platforms, Inc. (NASDAQ:META) is a communication platform that enables connectivity through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide.

Clearline Capital increased its position in the company by 56% in the second quarter bringing the total value of the stakes to $24.34 million.

184 hedge funds in Insider Monkey’s database held $18.19 billion worth of stakes in the company in Q2 2022.

Harding Loevner, an asset management company, mentioned Meta Platforms, Inc. (NASDAQ:META) in its second-quarter 2022 investor letter. Here’s what the firm said:

Any discussion of Q2 underperformance is incomplete without addressing two FAANG stocks. We do not share the market’s concerns about growth prospects at Facebook, Meta Platforms, Inc. (NASDAQ:META)’s core social media platform. Yes, growth is moderating as the business matures. There is also work to be done on technical workarounds to repair the damage to earnings growth from privacy changes implemented by Apple that impair Facebook’s ad targeting to iPhone users. But Meta’s digital advertising model still generates an extremely attractive rate of return on investment for the merchants it serves. Once its Apple workarounds are complete, we expect growth through market share gains and addressable market expansion to resume. Despite all the hyped new initiatives and skirmishes with rivals, Facebook remains an immensely free cash flow-generative business with huge advantages in putting its cash to work developing direct consumer relationships and monetizing them through targeted advertising. CEO Mark Zuckerberg has noted on multiple occasions how the company’s returns from its significant investments in AI have been even higher than it expected, in terms of driving higher revenue and lower costs. We view Meta shares as a bargain today, trading at 15 times earnings after over US$10 billion in annual expenditures on its Metaverse investments.