2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 235
Meta Platforms, Inc. (NASDAQ:META) builds technological products that allow people to share, connect, grow businesses, and find communities. These products help people connect through personal computers, mobile devices, virtual reality (VR), mixed reality (MR) headsets, and wearables.
The company has made significant progress toward AR and VR technologies, recently releasing an augmented reality prototype called Orion, one of its most ambitious projects. Reality Labs, Meta Inc.’s (NASDAQ:META) division dedicated to AR and VR innovations, is known for its substantial financial investments in these emerging consumer platforms.
Meta Inc. (NASDAQ:META) is increasingly becoming a powerhouse in AI and AR. The company’s Reality Labs attained several milestones this quarter, revolving particularly around the integration of AI and wearables. Its Ray-Ban Meta AI glasses are a popular product, which are great-looking glasses that allow users to take photos and videos, listen to music, and even take calls. In addition, they are fitted with Meta AI.
Meta Inc.’s (NASDAQ:META) new updates will enable these glasses to not only answer user questions throughout the day but also help users remember things, offer them suggestions, and even translate other languages right in the ear for them. Demand for these advanced glasses continues to be very strong, as its new clear edition, released at Connect in September, sold out almost immediately. The company takes the second spot on our list of the best augmented reality stocks to buy now.
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.”
