7. Meta Platforms Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Jim Cramer considered Meta Platforms Inc. (NASDAQ:META) the standout among big tech earnings, even outperforming Microsoft in his view. He was particularly impressed with Meta’s strength in digital advertising, WhatsApp monetization potential, and the overall momentum of the business. Here’s what he said:
“[Talking about the market’s gains] Led by two of these mega caps, the Microsoft and Meta platforms, we’re reminded of how the mega caps got so big to begin with. It’s their scale, their smarts, their moats, their balance sheets, and their sensational products. […] Meta Platforms jumped $23, 4.23%. Spectacular gains, tremendous outlooks, tremendous! […]
As good as Microsoft was, believe it or not, I thought Meta was better. Mark Zuckerberg has cracked the code in terms of trying to make digital advertising work for anyone, any company. […] He’s so confident when I heard that I wanted to start a new business just to see if it worked.
Even better, I could see where any company that advertises on television would be best off just giving a huge chunk of those ad dollars to Meta, not linear TV because it’s true. The performance is clearly better. […] because spending patterns and brand loyalty start with the teens.
A teen lead can be worth 10 times the lead of an older person. If you want to reach teens, you got to go to Zuckerberg. You got to go to Meta. So, if you’re a big consumer package goods company, you can simply give all your money to Meta, fire most your internal ad people, drop your expensive ad agency, and save yourself a fortune. […]
It was just incredible. Not only that, but Zuckerberg talked about monetizing the asset that’s potentially the best thing Meta owns. WhatsApp! More than three billion people use this as a principal communications platform and it costs nothing. That could change, and it could give the company a gigantic new revenue stream. This was an all systems go quarter.”
Here’s what Nightview Capital said about Meta Platforms Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Meta’s 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.
Thriving Core Platforms: In Q3, we saw Meta achieve a 23% YoY revenue growth,—a testament to strong user engagement across its ecosystem. The advertising landscape as a whole continues to evolve and we believe Meta’s existing platforms offer a defined advantage in this new world. Existing platforms in the age of AI continue to be the most powerful indicator of future success in our opinion.
AI Leadership: Meta’s AI capabilities and the Llama AI model are driving efficiency and product innovation. In our view, these assets have been under-appreciated by the market while enhancing Meta’s ability to further scale and innovate its leading advertising business.
Wearables: The success of Ray-Ban AI glasses and progress on Project Orion signal Meta’s growing influence in smart wearables, positioning it as a leader in the next wave of consumer technology.
Meta’s unparalleled reach and advertising expertise, combined with AI-driven product innovation, provide a durable competitive moat. As the company continues to optimize monetization and invest in next-generation technologies, it is at the forefront of growth in the evolving digital advertising landscape.”
