5 Best Metaverse Stocks To Invest In

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

Number of Hedge Fund Holders: 194

Facebook changed its name to Meta Platforms, Inc. (NASDAQ:META) to announce its shift towards being a company focused on metaverse. Meta Platforms, Inc. (NASDAQ:META) opened its flagship Horizon Worlds VR app to teenagers. However, Mark Zuckerberg is currently indicating his plans to go full ballistic on AI after the launch of ChatGPT ushered in an era of AI wars. In a letter to staff in March, Zuckerberg said that metaverse remains “central to defining the future of social connection.” But the overwhelming theme in the letter was AI, cost cutting and Meta Platforms, Inc. (NASDAQ:META)’s focus on efficiency.

Analysts believe Meta Platforms, Inc. (NASDAQ:META)’s VR, AR technologies coupled with its AI offerings could give the company an edge over its competitors in the future.

As of the end of the fourth quarter, 194 funds had stakes in Meta Platforms, Inc. (NASDAQ:META), up from 177 funds in the previous quarter.

Wedgewood Partners made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q1 2023 investor letter:

“Meta Platforms, Inc. (NASDAQ:META)was a top contributor to performance during the quarter. Meta’s 2022 advertising revenue grew slightly (currency-adjusted) over 2021, was up over +60% compared to 2019 (pre-Covid). The shift of advertisers and consumers to social media has been fairly dramatic and sticky. Further, although Meta’s profit margins have fallen below pre-Covid levels, the business likely hired well in excess of what it needed because they assumed the Covid-19 induced growth would continue. The Company more recently guided for 2023 adjusted expense growth to be in the low single digits over 2022, which we think is a sensible level to be at as end markets normalize. We think Meta still has plenty of room to moderate its expense base and drive significant value by repurchasing shares at historically depressed multiples.”