5 Best Augmented Reality Stocks To Invest In

1. Meta Platforms Inc (NASDAQ:META)

Number of Hedge Fund Investors: 234

With its Reality Labs division working full time on AR and VR related products and Quest headsets, Meta Platforms is the leading AR stock hedge funds are investing in. Mark Zuckerberg envisions AR glasses to start replacing smartphones in the future, and this is the source of Meta Platforms’ continuous investments in this space. The Verge reported last year that Meta Platforms plans to release its first pair of smart glasses with a display and a neural interface smartwatch designed to control them by 2025.

Wedgewood Partners stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its fourth quarter 2023 investor letter:

“Meta Platforms, Inc. (NASDAQ:META) was a leading contributor to performance for the quarter – and the year. Core advertising revenue growth accelerated to +23% while operating margin rebounded strongly from a year ago. The Company has been a consistent beneficiary of artificial intelligence (AI) over the past several years, investing aggressively in deep learning recommendation systems that help power its products, which reach nearly half the population of the planet. Meta Platform’s AI investments, combined with its massive scale, allow the Company to quickly spin up new products across its digital advertising real estate to reinforce its competitive positioning. For example, the Company’s relatively new Reels product is just over two years old, yet it has driven a +40% increase in the time Instagram users spend on the app. Reels content and other content served up to Instagram users is often driven by several very large and expensive AI recommendation systems that must sort through billions of datapoints in real time and come up with a probability of a user engagement. The Company is one of the few companies that has been able to consistently and profitably monetize AI technologies for shareholders and we continue to hold it has a top position in our portfolios.”

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