12 Best Metaverse Stocks to Invest in

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

Number of Hedge Fund Holders: 262

Meta Platforms, Inc. (NASDAQ:META) dominates the digital communication and virtual interaction space through its Family of Apps and Reality Labs segments. The Family of Apps includes Facebook, Instagram, and WhatsApp, while Reality Labs is building a metaverse infrastructure via VR, AR, and AI hardware like smart glasses. This portfolio allows META to rank among the best metaverse stocks.

For Q4 ending December 31, 2024, Meta Platforms, Inc. (NASDAQ:META) reported strong results where revenue was up 21% to $48.4 billion. Meanwhile, the operating income reached $23.4 billion, showing a 48% margin, resulting in a net income of $20.8 billion ($8.02/share), beating market expectations. Moreover, Family of Apps brought in $47.3 billion, while Reality Labs added $1.1 billion, although Meta reported a $5 billion operating loss. As a result, free cash flow hit $13.2 billion, with $77.8 billion in cash and marketable securities.

Additionally, Meta is pushing forward with its AI and metaverse advancements as Meta AI serves 700M+ monthly users, supported by a 2-gigawatt AI data center and custom AI chips. Moreover, Ray-Ban Meta smart glasses and AI integration across platforms highlight the company’s wearable tech/AI strategy. Simultaneously, Meta Platforms, Inc. (NASDAQ:META) started integrating Meta AI in Threads, WhatsApp, and Facebook for better engagement.

For the first quarter of 2025, Meta projects a revenue between $39.5 billion and $41.8 billion. Despite Reality Labs’ losses, a strong app ecosystem, AI adoption, and ad revenue provide cash flow for metaverse R&D. While the company suffers from regulatory challenges and higher CapEx, scale, and early-mover advantage position Meta Platforms, Inc. (NASDAQ:META) is well-positioned for long-term growth in immersive tech.