Fahad Saleem
5 min read
In This Article:
We recently published a list of Top 10 Buzzing Stocks in May. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against other top buzzing stocks in May.
The latest quarterly results from a couple of major technology companies have soothed concerns about AI demand that prevailed in the market following the launch of DeepSeek. Storm Uru, Manager at Liontrust Global Dividend Fund, said while talking to CNBC that the Satya Nadella-led tech giant’s results were “extraordinary.”
“50% of that growth came from AI revenue, and that’s an important marker for us going forward. Because after Deepseek about four months ago now, the debate really was around as digital intelligence gets smarter and as it gets cheaper, what is going to be the impact on demand. And what we found out last night was that demand is accelerating,” he said.
David Grain, Founder & CEO of Grain Management, also believes AI demand could be strong amid a variety of factors.
“The advent of AI has created this explosion of demand for data centers and compute power, but the drivers of where it makes sense to actually build these data centers has a lot to do with the availability of reliable and high quantity of electricity. So I think there’s definitely no slowdown in the demand side of the equation,” he said during an interview with CNBC.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
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Number of Hedge Fund Investors: 235
Mark Mahaney, Evercore ISI head of internet research, said in a latest interview with CNBC that Meta Platforms (NASDAQ: META) is a high-quality stock amid low valuation.
“I think that at less than 20 times earnings, I think it’s nicely dislocated and it’s a high-quality name. I think it’s going to be one of the best performing, relatively, ad assets out there, almost irregardless of what happens later this year. There’s a lot of resiliency to the Meta Platforms Inc (NASDAQ:META) model that may be underappreciated,” Mahaney said. “I think investors are concerned about with Meta Platforms Inc (NASDAQ:META), I think is somewhat overstated. Yes, it’s about 10% of their revenue comes from China-based companies, but those companies are still selling. They may not be selling into the US, but they’re still selling into Europe, Latin America, etc. They’re using Meta to get there. There’s also this little bit of an interesting hedge. The worse things there are between the US and China, the less chance of a TikTok actually staying in the US, and that’s going to be a source of funds I think for Meta. So I think there’s a little bit more resilience to Meta Platforms Inc (NASDAQ:META) than the market makes.”
