Billionaire Cliff Asness’ 10 Stock Picks with Huge Upside Potential

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

AQR Capital Management’s Q4 Stake: $964.9 million

Upside Potential as of April 26: 27.99%

Number of Hedge Fund Holders: 262

Meta Platforms, Inc. (NASDAQ:META) is a renowned technology company known primarily for its flagship platforms Facebook, Instagram, and WhatsApp, as well as its revolutionary advances in augmented reality (AR) and virtual reality (VR).

Meta Platforms, Inc. (NASDAQ:META) expects its total operating expenses to be between $114 and $119 billion in 2025, with a year-over-year growth rate of 19-25%. In addition, capex is predicted to increase 61-74% year-over-year to $60-$65 billion, compared to $37.3 billion in FY24. However, given reduced consumer spending and a cautious macroeconomic environment this year, the company may be unable to continue declaring double-digit increases in ad pricing.

On April 28, Loop Capital reduced Meta Platforms, Inc.’s (NASDAQ:META) price target to $695 from $900. Despite the substantial drop, the firm maintained its Buy rating for the company’s shares. The change comes as the firm expects Meta to report solid first-quarter results but a less bullish future outlook. According to Loop Capital’s analysis, Meta Platforms, Inc. (NASDAQ:META) might lose 40% of its revenue from inventory previously acquired by Chinese advertisers. Nonetheless, some revenue is anticipated to be retained when these impressions are passed on to the next best bidders.

Nightview Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2024 investor letter:

“Core Opportunity: Meta Platforms, Inc.’s (NASDAQ:META) platforms—Instagram, Facebook, WhatsApp, and Messenger—reach nearly half the world’s population daily, making it one of the most powerful advertising ecosystems globally. With investments in AI and augmented reality (AR), we believe Meta is also creating significant optionality for long-term growth.