2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 220
Number of Billionaire Investors: 26
Meta Platforms, Inc. (NASDAQ:META) has expressed its commitment to shaping the future of computing and connectivity by investing in technologies that enable immersive and interactive experiences. Given Meta Platforms, Inc. (NASDAQ:META)’s extensive user base and technological resources, it has the potential to play a significant role in the development of the metaverse. Meta is among the highly favored stocks by billionaires who hold a positive outlook on the metaverse.
On May 23, Piper Sandler analyst Thomas Champion maintained an Overweight rating on Meta Platforms, Inc. (NASDAQ:META) and set a price target of $270 after conducting a thorough analysis of the company’s artificial intelligence (AI) capabilities. Following the examination, the analyst holds a more positive view of Meta’s position in the digital advertising and AI sectors. Despite Meta’s focus on the Metaverse, its AI initiatives are expected to yield revenue share gains in 2023 and 2024, helping the company regain ground lost after the implementation of Apple’s app tracking transparency. Piper Sandler continues to consider Meta Platforms, Inc. (NASDAQ:META) as its top choice in the digital advertising space.
According to Insider Monkey’s first quarter database, 220 hedge funds were long Meta Platforms, Inc. (NASDAQ:META), compared to 194 funds in the prior quarter. Billionaire Philippe Laffont’s Coatue Management is one of the largest stakeholders of the company, with a position worth $1.70 billion.
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.”
