With Meta Platforms (NASDAQ:META) stock, investors can get exposure to multiple technology niche markets.
These include social media, virtual reality and artificial intelligence. So, before you cash in your Meta Platforms shares for a profit, consider holding on for more potential gains.
You may have already heard about Meta Platforms laying off part of its staff. This, however, doesn’t mean the company can’t continue to push the boundaries of VR, AI and more.
After all is said and done, you might be convinced to add to your share position in Meta Platforms even if the price feels too high right now.
META Stock Could Move Higher on Reels and AI Tech
There’s no denying it: the market likes Meta Platforms in 2023. META stock doubled during the year’s first half, but this might bother some value-focused investors.
Yet, Meta Platforms can continue to deliver value to its shareholders and customers. Repeatedly, the company raises the bar in important technology niches.
For example, analysts with Citi have been tracking Facebook’s advertisement loads for the company’s Reels platform. (Reels is a short-form video-sharing platform that’s similar to TikTok.)
The Citi analysts observed growth in Reels ad loads. They said “Reels is experiencing greater advertiser adoption given its Lo-Fi approach to ads, newer ad products, and continued engagement growth.”
The Citi analysts are bullish about Meta Platforms’ investments in AI. They believe that these investments “can deliver incremental usage across its users, creators, and advertisers.”
Analysts at UBS seem to agree with this idea. They feel Meta Platforms’ integration of generative AI into its products/services isn’t yet “priced into shares.”
Meta Platforms Keeps the VR Experience Affordable
Recently, Meta Platforms doubled down on its metaverse focus when the company introduced its Quest 3 VR headset. This carried a price tag of $499. That’s much easier for gamers and metaverse denizens to afford than Apple’s $3,499 VR headset.
And if that’s too pricey, Meta Platforms’ Quest 2 headset will only set you back $299.99. Plus, the company just debuted Meta Quest+, which is a subscription-based service for Meta Platforms’ VR headsets.
According to Bloomberg, a subscription to Meta Quest+ will only cost $7.99 per month, and will provide “access to two gaming titles each month.”
I’ll admit, it’s unknown whether this service will be a big hit with metaverse enthusiasts. Still, I feel it’s a smart move for Meta Platforms to make the VR experience accessible to many users by keeping the costs reasonable.
Stay the Course With META Stock
I’ll admit, I’ve been hesitant to recommend an investment in Meta Platforms. However, it looks like Meta Platforms is making the right moves, especially in the fields of AI and VR.
Therefore, I’m leaning bullish on Meta Platforms even if the share price is significantly higher than it was at the start of the year. META stock could easily continue to move up and it’s not a bad idea to own a few shares now.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
