Jim Cramer on the Magnificent Seven Stocks Plus Netflix

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

Number of Hedge Fund Holders: 219

In the latest episode, Mad Money’s host mentioned many factors that are contributing to Meta Platforms, Inc.’s (NASDAQ:META) success presently. Here’s what he said:

“Meta’s off to the races again. Why not? Thanks to the success of reels, the targeted ads on Instagram, WhatsApp, the Meta-loaded Ray-Bans. Oh, it’s awfully hard to bet against this one, isn’t it? Very easy to make the case for Meta when you exclude the cash on the balance sheet, the stock is absurdly cheap. It’s kind of strange how cheap it is.”

Cramer recently highlighted it among the stocks that have seen the most significant gains. He pointed out Mark Zuckerberg’s statement that upcoming advertising efforts will prioritize Instagram and Reels.

One of the significant segments within Meta (NASDAQ:META) is Reality Labs, which focuses on developing hardware aimed at immersive experiences. A key offering in this area is the Meta Quest, a virtual reality gaming headset that plays an important role in the company’s metaverse vision. In addition to virtual reality, the company is venturing into augmented reality with products like Ray-Ban smart glasses and the Orion spectacles, both of which hold promise for broader market adoption. The company has also made substantial investments in its AI initiatives, especially with the development of Llama, an AI language model.

As Llama evolves, it offers the potential to seamlessly integrate hardware and social media platforms, boosting user engagement. For instance, Ray-Ban Meta’s smart glasses enable users to make phone calls, listen to music, and capture photos with a simple tap on the frame. In May, a multimodal AI function was introduced for customers in the U.S. and Canada, expanding the glasses’ capabilities.

Although the initial launch of the smart glasses faced challenges in gaining consumer interest, the latest iteration, released in late 2023, has already surpassed the sales figures of its predecessor models over two years, indicating a positive reception. Furthermore, in September, a report from Reuters highlighted a significant extension of the partnership between EssilorLuxottica and Meta Platforms, solidifying a ten-year collaboration focused on advancing smart eyewear technology.

Meta’s (NASDAQ:META) expansive reach is reflected in its user base, which has nearly 3.3 billion daily active users across its various platforms, contributing to substantial advertising revenue. In the latest quarterly report, the company achieved $38.3 billion in ad revenue, alongside an overall revenue increase of 22% compared to the previous year