Hedge Funds Increase Bets on AI Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy META?
Source: Yahoo Finance
- Hedge Fund Investment Trend: Over the past year, the impact of artificial intelligence has led hedge funds to shift from traditional value stocks to growth stocks, particularly the 'Magnificent Seven', indicating strong market confidence in AI.
- Ackman's Investment Strategy: Billionaire hedge fund manager Bill Ackman revealed new stakes in Meta Platforms through Pershing Square Capital Management's latest 13F filing as of December 31, 2025, holding approximately 270 million shares, which represents 11% of his portfolio.
- Meta's Financial Performance: Meta reported Q4 revenue of $59.89 billion for 2025, a 24% year-over-year increase, with advertising revenue making up the majority, showcasing strong market momentum despite increased AI spending and a decline in stock price.
- Amazon's Strategic Position: Amazon now accounts for 14% of Ackman's portfolio with approximately 9.6 million shares, reflecting a 64% increase from previous holdings, highlighting its ongoing investment and growth potential in AI, particularly in cloud computing and AI advertising.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 644.780
Low
655.15
Averages
824.71
High
1117
Current: 644.780
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- User Experience Risks: The patent suggests that users could continue to post content posthumously, which may negatively impact other users, particularly on an emotional level, leading to a decline in trust towards the platform.
- Future Strategic Considerations: While Meta has no current plans to implement this technology, the existence of the patent indicates that the company may consider leveraging it for commercialization in the future, particularly in the realms of digital legacy and virtual memorialization.
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- Hedge Fund Investment Trend: Over the past year, the impact of artificial intelligence has led hedge funds to shift from traditional value stocks to growth stocks, particularly the 'Magnificent Seven', indicating strong market confidence in AI.
- Ackman's Investment Strategy: Billionaire hedge fund manager Bill Ackman revealed new stakes in Meta Platforms through Pershing Square Capital Management's latest 13F filing as of December 31, 2025, holding approximately 270 million shares, which represents 11% of his portfolio.
- Meta's Financial Performance: Meta reported Q4 revenue of $59.89 billion for 2025, a 24% year-over-year increase, with advertising revenue making up the majority, showcasing strong market momentum despite increased AI spending and a decline in stock price.
- Amazon's Strategic Position: Amazon now accounts for 14% of Ackman's portfolio with approximately 9.6 million shares, reflecting a 64% increase from previous holdings, highlighting its ongoing investment and growth potential in AI, particularly in cloud computing and AI advertising.
See More
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See More
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- User Engagement Milestone: Meta reported over 3.5 billion daily active users in Q4 across its platforms, including Facebook, Instagram, and WhatsApp, highlighting its significant influence and user retention in the social media landscape.
- AI Patent Controversy: The company secured a patent allowing the simulation of social media activity for deceased users, which has sparked considerable backlash from consumers, potentially harming its brand reputation despite no immediate plans for implementation.
- User Experience Risks: The patent suggests that users could continue to post content posthumously, which may negatively impact other users, particularly on an emotional level, leading to a decline in trust towards the platform.
- Future Strategic Considerations: While Meta has no current plans to implement this technology, the existence of the patent indicates that the company may consider leveraging it for commercialization in the future, particularly in the realms of digital legacy and virtual memorialization.
See More
Investment Outlook for Oklo Nuclear Company
- Significant Market Potential: Oklo is constructing advanced Aurora reactors expected to meet the growing energy demands of data centers and industries such as defense and manufacturing; while currently not generating revenue, it has secured binding agreements with major companies like Meta, Siemens Energy, and Liberty Energy.
- Notable Stock Volatility: Oklo's stock surged over 700% in 2025, and although it has retreated to around $65, significantly below its 52-week high of $193, the market's optimism about its future potential continues to support its high valuation.
- Pending Regulatory Approval: Oklo is awaiting licensing approval from the U.S. Nuclear Regulatory Commission, with a decision expected imminently; if approved and able to deploy by 2027, the company could see a surge in new business to meet the power needs of AI and other sectors.
- Investment Risk Advisory: Investing in Oklo requires a high risk tolerance due to uncertainties surrounding licensing approval and deployment timelines; while successful outcomes could lead to substantial revenue and new stock highs, investors must be prepared for significant market volatility.
See More
Oklo: Three Key Considerations Before Investing
- Technological Outlook: Oklo is constructing advanced Aurora nuclear reactors, expected to be deployed in 2027 to meet the growing energy demands of data centers and industries like defense and manufacturing, although it currently has no revenue.
- Partnership Agreements: Oklo has signed binding agreements with major companies such as Meta, Siemens Energy, and Liberty Energy, indicating strong market demand for its technology and potential business opportunities, even though actual revenue conversion will take several years.
- Market Valuation: With no current revenue, Oklo's stock trades at approximately $65 per share, significantly down from its 52-week high of $193, reflecting market optimism about its future potential rather than fundamental support.
- Regulatory Approval Risks: Oklo is awaiting licensing approval from the U.S. Nuclear Regulatory Commission, and while approval is anticipated, any delays or denials could impact its deployment timeline in 2027, thereby affecting future revenue growth.
See More
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- Surge in Demand: Oklo's stock rose 238% in 2025, driven by increasing demand for its advanced fission reactor technology, despite the company being pre-revenue and anticipating its first reactor deployment in 2027, which could unlock new revenue streams.
- Key Partnerships: The company has binding agreements with major firms like Meta, Siemens Energy, and Liberty Energy, indicating strong market validation for its technology, and these contracts are expected to convert into actual revenue in the coming years, further propelling growth.
- Market Volatility Risks: Although Oklo's stock surged over 700% at one point in 2025, it has since retreated to around $65 per share, significantly below its 52-week high of $193, necessitating investors to have a high-risk appetite to navigate potential volatility and delays.
- Pending Regulatory Approval: Oklo is awaiting licensing approval from the U.S. Nuclear Regulatory Commission, with a decision expected imminently; if approved and able to deploy by 2027, the company could see a surge in new business, although risks of denial and delays remain.
See More
Hedge Funds Increase Bets on AI Stocks
- Hedge Fund Investment Trend: Over the past year, the impact of artificial intelligence has led hedge funds to shift from traditional value stocks to growth stocks, particularly the 'Magnificent Seven', indicating strong market confidence in AI.
- Ackman's Investment Strategy: Billionaire hedge fund manager Bill Ackman revealed new stakes in Meta Platforms through Pershing Square Capital Management's latest 13F filing as of December 31, 2025, holding approximately 270 million shares, which represents 11% of his portfolio.
- Meta's Financial Performance: Meta reported Q4 revenue of $59.89 billion for 2025, a 24% year-over-year increase, with advertising revenue making up the majority, showcasing strong market momentum despite increased AI spending and a decline in stock price.
- Amazon's Strategic Position: Amazon now accounts for 14% of Ackman's portfolio with approximately 9.6 million shares, reflecting a 64% increase from previous holdings, highlighting its ongoing investment and growth potential in AI, particularly in cloud computing and AI advertising.
See More
U.S. Stocks Rise as Supreme Court Strikes Down Trump's Tariffs
- Market Recovery: The S&P 500 rose by 0.69% and the Nasdaq 100 by 0.87% after the Supreme Court overturned Trump's global tariffs, indicating a positive investor response to the policy shift that alleviates trade tensions.
- Economic Data Impact: U.S. Q4 GDP grew by 1.4%, below the expected 2.8%, while the core PCE price index rose by 2.7%, exceeding expectations of 2.6%, suggesting inflation pressures may limit the Fed's ability to cut rates, affecting market sentiment.
- Manufacturing Activity Decline: The February S&P manufacturing PMI unexpectedly fell to 51.2, below the anticipated 52.4, indicating weakness in manufacturing that could challenge economic recovery and further exacerbate market uncertainty.
- Earnings Optimism: Over 74% of S&P 500 companies reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, demonstrating strong corporate profitability that may support the stock market despite macroeconomic challenges.
See More
