5 Best WallStreetBets Stocks To Buy Now

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

Number of Hedge Fund Holders: 194

Shares of Meta Platforms, Inc. (NASDAQ:META) have surged 52.90% over the past 6 months, as of March 31. The stock is one of the most discussed stocks on WallStreetBets right now, and is ranked third among the best WallStreetBets stocks to buy now.

This March, Guggenheim analyst Michael Morris raised his price target on Meta Platforms, Inc. (NASDAQ:META) to $240 from $210 and reiterated a Buy rating on the shares.

At the close of the fourth quarter of 2022, 194 hedge funds were bullish on Meta Platforms, Inc. (NASDAQ:META) and held collective stakes worth $15.5 billion in the company. Of those, Eagle Capital Management was the largest stockholder in the company and held a position worth $1 billion.

Davis Advisers made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its 2022 annual investor letter:

“As both a “blue chip of tomorrow” and a company languishing under “headline risk,” our investment in Meta Platforms, Inc. (NASDAQ:META) reflects these two investment themes. With more than three billion daily users across its three platforms (Facebook, Instagram and WhatsApp), Meta has more users than almost any company in history. Despite this success, Meta currently languishes under a cloud of skepticism concerning two issues: competition from other services, such as TikTok, and significantly increased spending both on artificial intelligence (AI) and speculative new ventures including virtual reality and augmented reality (often referred to as the metaverse).

Starting with competition, despite the drumbeat of negative headlines, which leads most investors to assume that Facebook’s core businesses are shrinking, Figure 9 shows continued growth in the number of users on their core service, including Facebook (green bars), as well as the company’s entire family of applications.

The gold line in Figure 9 shows Meta’s ad revenue per user up more than 30% since 2019 but down from last year’s peak. While we find this decline concerning, it is hardly surprising given the slowing economy and time needed for Facebook to adjust to changes made by Apple—somewhat disingenuously in the name of privacy—that reduced the efficacy of some of Meta’s advertising while favoring Apple. We highlight this decline as a risk but believe it will prove temporary. We think that Meta’s growing user base as well as the continued growth in the amount of time users are spending on these platforms is a far more important indicator of Meta’s relevance and value…” (Click here to view the full text)