5 Best S&P 500 Stocks That Don’t Pay Dividends

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

Number of Hedge Fund Holders: 177

Meta Platforms, Inc. (NASDAQ:META) is another communication services company on our list. It offers a range of social media applications and connectivity products and services.

Brian Nowak at Morgan Stanley holds an Equal Weight rating on Meta Platforms, Inc. (NASDAQ:META) shares as of November 15.

Meta Platforms, Inc. (NASDAQ:META) has recently begun profiting immensely off of advertisement revenues. In the second quarter, the annualized revenue run rate for Instagram Reels ads crossed $1 billion. The company also has a Click-to-Message product on its apps allowing businesses to establish direct contact with their customers, which now creates $9 billion in annual run rate revenue as of this year.

Meta Platforms, Inc. (NASDAQ:META) was found among the 13F holdings of 177 funds in the third quarter. Their total stake value was $14.2 billion.

ClearBridge Investments, an investment management company, mentioned Meta Platforms, Inc. (NASDAQ:META) in its third-quarter 2022 investor letter. Here’s what the firm said:

“We initiated a new position in Meta Platforms, Inc. (NASDAQ:META), in the communication services sector, which operates the Facebook and Instagram social media platforms and is a leading digital advertising provider. We have been carefully watching the company over the last few quarters and believe headwinds from lower monetizing in Facebook and Instagram Reels and pressures from consumer privacy measures are poised to lessen. We believe the company has begun to fully acclimate to this new environment, will achieve greater effectiveness in Reels monetization and find ways to adapt to new privacy standards which will rebound advertising efficiency. Combined with a greater focus on cost control, we believe these initiatives will help contribute to further margin expansion and leave the company well-positioned moving forward.”