RGA Investment Advisors, an investment management firm, has released its investor letter for the first quarter of 2024. A copy of the letter can be downloaded here. The macroeconomic environment in the first quarter was a combination of strong economic growth and frustratingly robust inflation. Large-cap stocks outperformed small-cap stocks in the first quarter, which is likely a result of continued market momentum. Check out the strategy’s top five stocks to learn about our best picks for 2024.
RGA Investment Advisors highlighted stocks such as Meta Platforms, Inc. (NASDAQ:META) in their Investor Letter for Q1 2024. Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products that connect people. Meta Platforms, Inc. (NASDAQ:META) has a one-month return of 7.53% and the company’s shares have risen 79.42% over the past 52 weeks. On June 14, 2024, Meta Platforms, Inc. (NASDAQ:META) shares closed at $504.16 per share, giving the company a market capitalization of $1.279 trillion.
In its Q1 2024 investor letter, RGA Investment Advisors said the following about Meta Platforms, Inc. (NASDAQ:META):
“We believe this section is important to highlight some of the key lessons learned for 2022 and beyond. First, Meta Platforms, Inc. (NASDAQ:META) is one of our three largest positions and fluctuates with market movements on a daily basis. As you read this article, it may actually be our largest holding. In closing our Q4 2022 commentary, we said that we “significantly expanded META” during the quarter. We did not expect the stock to generate such large gains in such a short period of time. Mark Zuckerberg’s “Year of Efficiency,” a recovery in the digital advertising market, and an improving macro environment have helped META’s key multiple recover to comfortable levels within its long-term range.
While these multiples are now back to “normal” levels, they are by no means expensive for a company that has seen revenue growth reaccelerate to double digits despite operating leverage and continued heavy investment in its Reality Labs division. This is why we continue to hold a large position in META. As for why we have divested in part, I would like to highlight a few key points: …” (Click here to read the full story)
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Meta Platforms, Inc. (NASDAQ:META) ranks third on our list of the 31 most popular stocks among hedge funds. According to our database, 246 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the first quarter, up from 242 in the previous quarter. Meta Platforms, Inc. (NASDAQ:META) had trailing 12-month revenues of $142.71 billion and quarterly revenue growth of 27.30% year-over-year. While we recognize the investment potential of Meta Platforms, Inc. (NASDAQ:META), we believe that AI stocks have a better chance of delivering higher returns in a shorter time frame. If you are looking for AI stocks that are as promising as NVIDIA but trade for less than 5x its revenues, check out our report. Cheapest AI Stocks.
In another article, we covered Meta Platforms, Inc. (NASDAQ:META) and shared billionaire Israel Englander’s top stock picks for 2024. Additionally, if you would like to see more investor letters from hedge funds and other leading investors, check out our Hedge Fund Investor Letters Q1 2024 page.
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Disclosures: None. This article originally appeared on Insider Monkey.
