In our recent publication, we highlighted a curated list of 13 NASDAQ stocks that exhibit the highest upside potential. This article aims to provide an in-depth analysis of where Meta Platforms Inc. (NASDAQ:META) stands within this group of promising stocks.

On April 7, renowned analyst Dan Ives from Wedbush Securities made a notable appearance on CNBCs Squawk on the Street. During this segment, he shared his insights regarding the current tariff landscape and its potential ramifications for technology supply chains. Ives pointed out that the actions of prominent figures, notably Elon Musk and the tariffs instituted during President Trump's administration, have contributed significantly to the prevailing economic uncertainty facing US tech companies. He referred to this situation as an economic Armageddon for the tech sector, highlighting the severe challenges posed by recent tariffs and ongoing geopolitical tensions.

According to Ives, the US tech sector has historically maintained a competitive edge over its Chinese counterparts. However, this advantage could be lost if manufacturing capabilities are shifted to the US. Establishing manufacturing plants domestically presents a plethora of logistical hurdles that cannot be overlooked; Ives estimated it would take between four to five years to build facilities capable of producing outputs that rival those currently achievable in Asia.

Despite the tumultuous environment, Ives noted that he has not downgraded major stocks within the MAG7 group, a collection of influential tech stocks, but he remains cautious about the ongoing situation. He warned that if the current issues persist for an extended period, we might see drastic reductions in earnings across the sector. The uncertainty surrounding tariffs could potentially dampen demand for emerging technologies, including areas like artificial intelligence and cybersecurity. Ives emphasized that these factors could result in significant repercussions for US tech companies, with potential earnings cuts reaching as high as 25% across the board.

Furthermore, Ives took aim at Elon Musks foray into political matters, suggesting that Musk's decisions have inflicted lasting damage on both his personal brand and his customer base. He estimated that this political involvement could lead to a 20% decrease in demand in Europe and a 10% drop in the United States.

Our Methodology

To identify the 13 stocks with the greatest analysts upside potential, we utilized the Finviz stock screener on April 8. The stocks are ranked in ascending order based on their potential for growth. Additionally, we incorporated hedge fund sentiment for each stock as of Q4 2024, information which was sourced from the reputable Insider Monkey database.

But why focus on stocks favored by hedge funds? The reasoning is straightforward: our research indicates that mimicking the top stock selections made by the most successful hedge funds tends to yield market-beating results. Our quarterly newsletter employs a strategy that selects 14 small-cap and large-cap stocks every quarter and has impressively returned 373.4% since May 2014, significantly outperforming its benchmark by 218 percentage points. For those interested, we invite you to explore more details about our strategy and findings.

Is Meta Platforms Inc. (NASDAQ:META) a NASDAQ Stock with the Highest Upside Potential?

In the context of this analysis, we observe a dedicated team of developers diligently working together to refine the company's messaging application, showcasing Meta's commitment to innovation amid a challenging landscape.