In this article we will take a look at the 5 best virtual reality stocks to buy. For a detailed analysis of these companies, go directly to the 10 Best Virtual Reality Stocks to Buy.
5. QUALCOMM Incorporated (NASDAQ: QCOM)
Number of Hedge Fund Holders: 85
QUALCOMM Incorporated (NASDAQ: QCOM) is a San Diego-based semiconductor manufacturing company. It was founded in 1985 and is placed fifth on our list of 10 best virtual reality stocks to buy. The company provides the chipsets used to power mobile devices that make use of these chipsets to run software for virtual reality applications. On April 29, the firm announced that it was partnering with VictoyXR to bring virtual reality headsets for use in an education program at a local college.
QUALCOMM Incorporated (NASDAQ: QCOM) recently announced fiscal quarter two revenue of close to $8 billion, an increase of 52% compared to the same period last year. It also posted earnings-per-share that beat market estimates by $0.23.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in the firm with 4 million shares worth more than $609 million.
Alger Spectra Fund, in their Q1 2021 investor letter, mentioned QUALCOMM Incorporated (NASDAQ: QCOM). Here is what Alger Spectra Fund has to say about QUALCOMM Incorporated in their Q1 2021 investor letter:
“Long position Qualcomm Inc. were among the top detractors from performance. Qualcomm is a leading semiconductor company with strong positions in telecommunications end markets that position the company as a primary beneficiary of the innovative 5G network standard roll out. Qualcomm is acknowledged as having the best technology specs for 5G chip sets as evidenced by signing up all 75 major OEMs including Apple. Additionally, beyond handsets, Qualcomm has meaningful growth drivers, including the Internet of Things, automobiles, industrials and gaming that provide the company with potential for generating increased earnings.
While Qualcomm was a notable positive contributor to the portfolio’s absolute and relative returns in 2020, during the first quarter, the share price declined and the position detracted from performance. Market demand for chips has been strong; however, Qualcomm hasn’t been able to fully exploit the demand as it is capacity constrained. Expectations were high for Qualcomm and while the quarter generally exceeded consensus estimates and forward estimates did rise, the street was anticipating a stronger positive surprise. We believe the production capacity constraints should abate in the second half of this year.”
4. Microsoft Corporation (NASDAQ: MSFT)
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ: MSFT) is a Washington-based technology firm founded in 1975. It ranks fourth on our list of 10 best virtual reality stocks to buy. It is one of the largest technology firms in the world and invests heavily in the virtual reality sector. The firm offers several VR-related products, including VR headsets for video games and entertainment purposes, as well as Microsoft HoloLens, a mixed reality technology that helps businesses incorporate virtual reality into their activities.
Microsoft Corporation (NASDAQ: MSFT) announced on April 29 that it was reducing the share of games offered by independent platforms on its store from 30% to 12%, a move that analysts predict is based on increased regulatory scrutiny on the high fees that tech firms collect from developers to keep apps on these stores.
At the end of the fourth quarter of 2020, 258 hedge funds in the database of Insider Monkey held stakes worth $52 billion in the firm, up from 234 in the preceding quarter worth $42 billion.
Our calculations show that Microsoft Corporation (NASDAQ: MSFT) ranks 2nd in our list of the 30 Most Popular Stocks Among Hedge Funds.
3. Apple Inc. (NASDAQ: AAPL)
Number of Hedge Fund Holders: 146
Apple Inc. (NASDAQ: AAPL) is a California-based technology firm. The company primarily makes and sells hand-held electronic devices, laptops, and computers but also has virtual reality projects in the pipeline. Earlier this year, media reports indicate that Apple was developing a VR headset that would be a precursor to more ambitious virtual reality glasses it eventually plans to produce. The company has also integrated virtual reality into the devices it makes, like VR-related software that can be used on phones for a variety of applications.
Apple Inc. (NASDAQ: AAPL) was upgraded to Neutral from Sell by investment bank Goldman Sachs after the technology firm reported strong sales for the new iPhone models through the pandemic. However, the bank cautioned that the demand for new Apple products would be difficult for the firm to sustain in the long term.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in the firm with 62.8 million shares worth more than $7.6 billion.
Our calculations show that Apple Inc. (NASDAQ: AAPL) ranks 10th in our list of the 30 Most Popular Stocks Among Hedge Funds.
2. Sony Group Corporation (NYSE: SONY)
Number of Hedge Fund Holders: 28
Sony Group Corporation (NYSE: SONY) is a Tokyo-based multinational technology firm that primarily makes and sells electronics. The firm is famous for being a leader in selling video game hardware like the PlayStation and plans to compliment these sales with virtual reality gear as it prepares for the next generation of video game enthusiasts. Earlier this year, it was reported that the firm was working on a VR headset that would ship with units of the PlayStation Five to give advanced gaming experiences to customers.
The firm was founded in 1946 and is placed second on our list of 10 best virtual reality stocks to buy. Sony Group Corporation (NYSE: SONY) was given a Buy rating by investment advisory Oppenheimer on April 29 with a price target of $135. On April 19, investment bank Goldman Sachs also maintained a Buy rating on Sony stock.
At the end of the fourth quarter of 2020, 28 hedge funds in the database of Insider Monkey held stakes worth $593 million in the firm, up from 26 in the preceding quarter worth $369 million.
1. Facebook, Inc. (NASDAQ: FB)
Number of Hedge Fund Holders: 242
Facebook, Inc. (NASDAQ: FB) is a Menlo Park-based technology firm that owns and operates several social networking platforms. It also has stakes in the virtual reality sector. The firm has set up a virtual reality research lab to power innovation and develop new applications for the technology. The company believes that virtual reality advances help make social connections better and eventually plans to introduce VR-based tech into social platforms it operates like Facebook, Instagram, and WhatsApp.
Facebook, Inc. (NASDAQ: FB) stock soared more than 7% on April 29 to all-time highs after the firm released a strong quarterly earnings report. The company is also exploring the offering of new tools to creators that will enable them to market their skills for commercial use.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in the firm with 4.7 million shares worth more than $1.3 billion.
Our calculations show that Apple Inc. Facebook, Inc. (NASDAQ: FB) ranks 3rd in our list of the 30 Most Popular Stocks Among Hedge Funds.
You can also take a peek at 10 Best Travel Stocks to Buy Right Now, and 10 Best Automotive Stocks to Invest in Now.
