In this article, we will be taking a look at the 5 best virtual reality stocks to buy heading into 2024. To read our detailed analysis of the VR market, you can go directly to see the 12 Best Virtual Reality Stocks To Buy Heading into 2024.
5. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 112
Adobe Inc. (NASDAQ:ADBE) was seen in the portfolios of 109 hedge funds at the end of the third quarter. Their total stake value in the company was $8.2 billion.
As of November 10, Keith Bachman, an analyst at BMO Capital, holds an Outperform rating on shares of Adobe Inc. (NASDAQ:ADBE). The analyst also raised his price target on the stock from $645 to $670.
Adobe Inc. (NASDAQ:ADBE) is an application software company based in San Jose, California. It operates through its Digital Media, Digital Experience, and Publishing and Advertising segments. The company offers Adobe 180 and 360/VR editing software that helps video developers create more immersive stories for their viewers.
Polen Capital said the following about Adobe Inc. (NASDAQ:ADBE) in its third-quarter 2023 investor letter:
“Both Alphabet and Adobe’s businesses continue to perform well. With respect to Adobe, the most recent quarter delivered more of the same with constant currency revenue growing 13%, margin expansion, and over 2% of shares outstanding repurchased for non-GAAP earnings growth of over 20%. We believe its approach to GenAI through Firefly, which guarantees safe content because it trains on Adobe Stock, will continue to be attractive to enterprises. The counter to GenAI, and something we are keeping an eye on with Alphabet and Adobe, is that it requires heavy investment. While both businesses can leverage their scale and manage costs in other areas, we expect the investment in future growth through GenAI will weigh on company-wide margins over the near term.”
Follow Adobe Inc. (NASDAQ:ADBE)
Follow Adobe Inc. (NASDAQ:ADBE)
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 134
Apple Inc. (NASDAQ:AAPL) is a technology hardware, storage, and peripherals company. It entered the VR space in 2023 with the Apple Vision Pro headset.
In the third quarter, 134 hedge funds were long Apple Inc. (NASDAQ:AAPL), with a total stake value of $179 billion
.A Strong Buy rating and a $240 price target were maintained on Apple Inc. (NASDAQ:AAPL) on November 16 by Ivan Feinseth at Tigress Financial.
RiverPark Advisors mentioned Apple Inc. (NASDAQ:AAPL) in its third-quarter 2023 investor letter:
“Apple Inc. (NASDAQ:AAPL): Apple shares were a top detractor in the quarter following reports of the Chinese government banning iPhone use by government employees. Additionally, while the iPhone 15 rollout went generally as expected, the market was underwhelmed by the upgrades in the new phone. Despite these overhangs, early reports from the supply chain seem to indicate demand for the new phone is in line with or better than investor expectations. In August, the company reported a broadly in-line fiscal 3Q23 with $82 billion of revenue and $24 billion of free cash flow. High margin Services Revenue continues to grow faster than the overall business leading to gross and operating margin expansion.
With an installed base of 2 billion active devices and significant growth of the company’s recurring revenue Services segment (now 18% of revenue), we believe that Apple remains one of the most innovative, best positioned and most profitable companies in the mobile technology industry.”
Follow Apple Inc. (NASDAQ:AAPL)
Follow Apple Inc. (NASDAQ:AAPL)
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 180
Stifel’s Ruben Roy maintained a Buy rating and a $600 price target on NVIDIA Corporation (NASDAQ:NVDA) on November 17.
NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor company providing graphics processing units for computers and gaming consoles, making it a key player in the VR space since advanced VR applications require computers with high-end graphics cards.
NVIDIA Corporation (NASDAQ:NVDA) had 180 hedge funds long its stock in the third quarter, with a total stake value of $29.6 billion.
Follow Nvidia Corp (NASDAQ:NVDA)
Follow Nvidia Corp (NASDAQ:NVDA)
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 234
Meta Platforms, Inc. (NASDAQ:META) is a leading communication services company that offers VR technology and headsets such as the Meta Quest 2 at more affordable prices than its previous products and even the products of its competitors like Apple.
Mark Kelley at Stifel holds a Buy rating and a $405 price target on Meta Platforms, Inc. (NASDAQ:META) as of November 14.
We saw 234 hedge funds long Meta Platforms, Inc. (NASDAQ:META) in the second quarter. Their total stake value was $35.2 billion.
Follow Meta Platforms Inc. (NASDAQ:META)
Follow Meta Platforms Inc. (NASDAQ:META)
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 306
An Outperform rating and a $425 price target were maintained on Microsoft Corporation (NASDAQ:MSFT) on November 16 by Daniel Ives at Wedbush.
In total, 306 hedge funds were long Microsoft Corporation (NASDAQ:MSFT) in the third quarter, with a total stake value of $72.2 billion.
Microsoft Corporation (NASDAQ:MSFT) is a big tech company that is offering VR products such as the HoloLens device, which provides holographs for enterprise applications.
Here’s what Jackson Peak Capital said about Microsoft Corporation (NASDAQ:MSFT) in its third-quarter 2023 investor letter:
“The Microsoft Corporation (NASDAQ:MSFT)/Activision Blizzard, Inc. (NASDAQ:ATVI) merger arbitrage came to a successful conclusion with the court denying the FTC’s preliminary injunction request. The deal subsequently received approval from the UK CMA and closed in October. The ATVI position was an example of “staying around the hoop” of a significant arb opportunity. At first, the position led to a small loss in Q2 when the UK CMA initially blocked the deal in April, but we stayed close to the case, analyzed the FTC trial and scaled up the ATVI position as it became apparent FTC had a weak case, meaning the probability of the deal going through was mispriced by the market since the companies would likely find a solution to work with the UK CMA (only global regulator who had an issue) if the FTC lost.”
Follow Microsoft Corp (NASDAQ:MSFT)
Follow Microsoft Corp (NASDAQ:MSFT)
See also Top 16 Augmented Reality (AR) Stocks Among Hedge Funds and 20 Biggest Augmented Reality And VR Companies In The World.