Billionaire David Tepper’s Top 12 Stock Picks Heading into 2026

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

Stock Performance (end Q3-December 11): -11.12%

Appaloosa Management Equity Stake: $271.72 Million

Number of Hedge Fund Holders: 273

Meta Platforms Inc. (NASDAQ:META) is one of billionaire David Tepper’s top stock picks heading into 2026. On December 11, Morgan Stanley cut its price target of Meta Platforms Inc. (NASDAQ:META) to $750 from $820 while reiterating an Overweight rating.

The price cut comes amid concerns that sentiments around the social media networking stock have turned negative. That’s in part because of growing fears about revenue durability, operating expense uncertainty, and issues around the company’s Llama AI model. The shift in sentiment comes amid growing confidence in Alphabet’s prospects, buoyed by the tech giant’s AI initiatives.

Despite the cut, the price target represents a significant upside potential. Additionally, Morgan Stanley insists Meta is one of the few companies that can leverage its data, distribution capabilities, and AI investments to generate long-term value.

Additionally, the stock came under pressure after the company detailed plans to develop a closed, monetizable AI model incorporating technology from Chinese tech giants, including Alibaba. Avocado is the proposed AI model slated for release next spring. Meta will reportedly retain control over the closed AI model, marking a significant departure from the open-source model it has championed over the years.

The Pivot towards a closed model is part of an effort to address the disappointments associated with Meta’s Llama 4 Open Source model.

Meta Platforms, Inc. (NASDAQ:META) is a tech giant focused on connecting people through social media (Facebook, Instagram, WhatsApp), advertising, and building the future of the internet with virtual and augmented reality (Metaverse, Quest headsets, AI), aiming to blend digital and physical worlds for work, play, and connection.