10 Best Augmented Reality Stocks To Buy Now

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 219

Meta Platforms, Inc. (NASDAQ:META) has made a significant shift towards the metaverse, VR, and AR technologies in recent years. The company has ambitious plans in these areas, including the development of smart glasses, Quest headsets, and smartwatches. However, Reality Labs, Meta’s division dedicated to VR and augmented reality innovations, has faced scrutiny due to its substantial financial investment in these emerging consumer platforms.

Despite these concerns, BofA Securities has maintained a Buy rating for Meta Platforms Inc. (NASDAQ:META), with an unchanged price target of $550. This comes after reports suggested that Meta plans to reduce its investment in Reality Labs’ hardware by about 20% through 2026. While Meta has not officially confirmed these budget adjustments, the potential cuts are viewed as a strategic response to the lukewarm reception of VR devices in the market, though there is a renewed interest in AR glasses.

Meta Platforms Inc. (NASDAQ:META) reported a stronger-than-expected profit of $13.5 billion for the most recent quarter, boosting its shares by nearly 7%. Revenue for the April-June period reached $39 billion, surpassing market expectations and marking a 22% increase year-over-year. The California-based tech giant forecasts third-quarter revenue between $38.5 billion and $41 billion.

At the end of Q2 2024, 219 investors reported holding positions in META, with total stakes valued at $42.5 billion, a notable decrease from $46.9 billion in the previous quarter.

Alger Focus Equity Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q1 2024 investor letter:

“Meta Platforms, Inc. (NASDAQ:META) operates the world’s largest social network, with over 3 billion monthly active users across its platform. The company generates revenue predominantly from advertising. which accounts for over 95% of its total revenue, evenly split between North America and international markets. During the quarter, shares contributed to performance following the release of strong fiscal fourth quarter operating results, with revenues and earnings surpassing analyst estimates. The better-than- expected revenues were attributed to strong advertiser demand and Al-driven ad improvements. Moreover, the company materially raised its fiscal first quarter sales and earnings guidance above analysts’ estimates, buoyed by continued strong advertiser demand trends and enhancements to Reels. Advantage+. Click-to-message, and Shop Ads. Further, management noted that ongoing investment in Al is enhancing user engagement and advertiser returns through improved targeting and measurement. Separately, Meta authorized a new share repurchase plan representing approximately 5% of its market capitalization and announced the initiation of its first dividend, implying an approximate 0.4% yield.”