Wall Street Billionaires Bet Big on Meta Platforms’ Future Growth

Data drives Wall Street, and the vast amount of information can be overwhelming for investors. With thousands of publicly traded companies releasing quarterly results alongside near-daily economic data updates, critical insights can easily be overlooked.

Just a few weeks ago, a significant data release took place. February 14, known for being a day of love for many, marked an important deadline for institutional investors managing at least $100 million in assets under management (AUM) to file Form 13F with the Securities and Exchange Commission (SEC).

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A 13F filing provides investors valuable insights into the stock trades of Wall Street’s elite money managers. This document reveals which stocks they have been buying and selling recently, highlighting trends in industries and sectors that capture the attention of top asset managers.

Billionaire investors have capitalized on the ongoing artificial intelligence (AI) boom. Among them is a notable hypergrowth stock that has surged over 1,500% since its initial public offering (IPO), capturing the attention of three prominent billionaires on Wall Street.

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Image source: Getty Images.

Billionaire Investors Back Meta Platforms Amid Growth Potential

At first glance, billionaire fund managers Chase Coleman, Stephen Mandel, and Terry Smith appear quite different. Coleman manages nearly $26.5 billion at Tiger Global Management, favoring high-growth tech stocks, particularly those involved with AI and small caps. In contrast, Mandel, with $13.5 billion at Lone Pine Capital, invests in growth companies and those undergoing turnarounds. Smith, often referred to as “Britain’s Warren Buffett,” oversees $23.5 billion at Fundsmith with a keen eye for value stocks.

Despite their varied investment strategies, they share a common interest—Meta Platforms (NASDAQ: META).

According to their 13F filings for the quarter ending December:

• Chase Coleman (Tiger Global Management) held 7,465,139 shares
• Stephen Mandel (Lone Pine Capital) held 2,036,930 shares
• Terry Smith (Fundsmith) held 4,561,352 shares

For all three investors, Meta Platforms represents their top holding. Philippe Laffont, CEO of Coatue Management, also had Meta as his second-largest holding at the close of the fourth quarter.

However, Meta is not without its challenges. The looming threat of a U.S. recession poses a significant concern. The Federal Reserve Bank of Atlanta’s latest GDPNow forecast suggests a 2.4% contraction in first-quarter GDP, which could lead businesses to reduce advertising spending—an issue for Meta.

Nonetheless, several compelling catalysts have prompted these billionaires to prioritize Meta Platforms.

Image source: Getty Images.

Understanding Meta’s Growth Drivers

To fully appreciate Meta’s growth prospects, one must recognize the importance of its social media platforms. As of December 2024, Meta’s suite of applications—including Facebook, Instagram, WhatsApp, and Threads—attracted an average of 3.35 billion daily active users, overshadowing competitors.

This vast user base justifies higher advertising rates. In 2024, Meta reported a 10% increase in average ad prices compared to the previous year.

In addition, while advertising revenues are subject to economic cycles, periods of growth outlast downturns significantly. With nearly 98% of its revenue coming from ads, Meta is positioned to thrive during economic expansions.

Buoyed by this strong foundation, CEO Mark Zuckerberg has invested heavily in emerging growth sectors. For example, Meta is spending more than $10 billion to acquire 350,000 graphics processing units from Nvidia for its AI-enhanced data centers.

As most companies struggle to harness AI technology effectively, Meta is already leveraging AI within its advertising framework, providing businesses with tools to personalize content for users.

Moreover, Meta plans to integrate AI extensively within the metaverse, using it for tasks such as avatar customization and content creation. Although significant revenue from the metaverse is still years away, Meta is positioning itself as a critical player.

Meta Platforms also boasts a robust financial position. It ended the previous year with around $77.8 billion in cash, cash equivalents, and marketable securities, generating an impressive $91.3 billion in net cash from operations in 2024. This financial strength allows Zuckerberg the flexibility to invest in high-growth projects at a measured pace—an advantage many businesses do not have.

Despite a remarkable recovery from its 2022 bear market low, billionaires Coleman, Mandel, and Smith see tremendous potential for Meta’s future.

Since its IPO in 2012, Meta has experienced astonishing growth, with sales and net income rising by over 4,300% and 6,100%, respectively. Currently, Meta is valued at less than 22 times forward earnings, which remains attractive given its history of consistent sales and profit growth.

Opportunity Alert: Don’t Miss Your Chance

If you’ve ever thought you missed out on investing in high-growth stocks, now is the time to pay attention.

Occasionally, our expert analysts identify “Double Down” stocks—companies poised for significant gains. If you’re concerned about missing investment opportunities, now is the best time to consider re-entering the market. The results speak volumes:

• Nvidia: If you invested $1,000 when we doubled down in 2009, you’d have $292,207!
• Apple: If you invested $1,000 when we doubled down in 2008, you’d have $45,326!
• Netflix: If you invested $1,000 when we doubled down in 2004, you’d have $480,568!

Currently, we are issuing “Double Down” alerts for three exceptional companies, and this opportunity may not arise again soon.

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*Stock Advisor returns as of March 10, 2025.

Randi Zuckerberg, a former director of market development and spokesperson for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sean Williams has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.