5 Best Virtual Reality Stocks to Buy

1. Meta Platforms, Inc. (NASDAQ:FB)

Number of Hedge Funds: 224

The reason Meta Platforms, Inc. (NASDAQ:FB) is the top pick on this list is because of the $10 billion pledge towards the metaverse. It is the concept of a virtual world enabled through VR and AR headsets. On May 18, Guggenheim analyst Michael Morris lowered the price target on Meta Platforms, Inc. (NASDAQ:FB) from $275 to $250 and kept a Buy rating on the stock.

In the first quarter of 2022, Meta Platforms, Inc. (NASDAQ:FB) missed its revenue estimates by nearly $314 million after generating $27.91 billion. On this revenue, the company had an operating income of $11.48 billion. However, Meta Platforms, Inc. (NASDAQ:FB) beat the analyst forecasts by 8.23% after reporting an EPS of $2.72. Furthermore, the company reduced its total year expenses from the range of $90-$95 billion to $87-$92 billion.

Out of 924 hedge funds in the Insider Monkey database, 224 remained bullish on Meta Platforms, Inc. (NASDAQ:FB) in the fourth quarter of 2021. Ken Fisher’s Fisher Asset Management held the biggest stake, with 11.198 million shares worth $2.49 billion. On top of that, the fund increased its activity by 17% in the company compared to the previous quarter.

Meta Platforms, Inc. (NASDAQ:FB) was mentioned by ClearBridge Investments in their first-quarter 2022 investor letter. Here is what the firm said:

“Facebook shares derated following fourth-quarter earnings results and first-quarter revenue guidance that was weaker than expected. We knew going into Facebook’s latest reporting period that Apple’s (NASDAQ:AAPL) iOS14 privacy changes (measurement, loss of signal) would have a near-term impact on earnings, but competition in the social media space (primarily from TikTok) further catalyzed multiple compression in the stock. While TikTok is a competitive threat and Apple’s privacy changes have impacted the industry, we believe these risks are manageable and Facebook retains a number of advantages around user scale, advertiser scale, new product development and sophistication of its digital advertising technology that are not being valued at current levels.”

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