Before we dive into the best Metaverse stocks to buy, let’s take a look at the industry as a whole. And it turns out that there is no agreed official definition.
In general, the metaverse is a future version of the Internet that is currently under development. It will likely be the combination of the internet, virtual reality, augmented reality, digital worlds, cryptocurrency, and NFTs.
This future Internet will be made up of shared virtual spaces linked to a perceived virtual universe. Other popular ways to refer to the Metaverse are The Mirror World, AR Cloud, or Magicverse. Personally, I prefer The Mirror World.
One thing to note is that the Metaverse isn’t a real thing … yet. It is currently a combination of early stage technology, high aspirations, and hype. However, it’s certainly easy to see why people are getting excited about such a concept.
In 2020, the virtual reality market is worth just under $ 16 billion, but is expected to grow at a rate of 18% over the next few years. This means that we are still in the early stages of adopting virtual reality. It also means that the use of virtual reality and augmented reality to create some type of metaverse is probably still a few years away.
However, that doesn’t stop the world’s greatest tech minds from moving forward!
There are a handful of companies taking initiatives to develop the metaverse. Let’s take a look at which of these companies are the best Metaverse stocks to buy.
Early stage metaverse stocks to buy
NOTE: I am not a financial advisor and simply offer my own research and commentary. Please exercise due diligence before making any investment decisions.
Facebook (Nasdaq: FB)
I’m sure you’re not all surprised that the first Metaverse stock on this list is Facebook.
Whenever we talk about something high tech related, it always feels like Mark Zuckerberg’s name pops up. The metaverse is no different. In July 2021, Facebook announced big plans to help build the Metaverse.
Facebook is already leading the way in virtual and augmented reality. He has sold up to eight million pairs of his Oculus 2 VR headset. Since AR and VR are forerunners of the metaverse, this puts Zuck & Co. in a good position. Facebook can continue to create metaverse offers that integrate Facebook, Instagram, and WhatsApp.
In the second quarter of 2021, Facebook reported $ 497 million in non-advertising revenue. Presumably most of this income came from the sale of helmets. With total revenue of $ 29 billion in the second quarter, that means VR headset sales currently represent less than 2% of Facebook’s total revenue.
Facebook also recently announced Facebook Horizon, which is currently in an invitation-only beta. To use its own words, Facebook Horizon is “A social experience where you can explore, play and create in extraordinary ways. “
Facebook’s stock has grown by around 150% in the past five years and more than 20% in 2021.
Microsoft (Nasdaq: MSFT)
The next best metaverse stock to buy is Microsoft. Microsoft is included in this list because of the number of different ways it can help create the Metaverse.
Here are some of the projects Microsoft is working on:
- HoloLens – Its augmented reality headset
- Microsoft Power Platform – Business Intelligence, Application Development, and Application Connectivity Software
- Azure AI & Autonomous Systems – AI and Machine Learning Systems
- Azure Synapse Analytics – Predictive Data Analytics
- Azure Maps – A private indoor mapping system
- Azure Digital Twins – Software that enables creation of twin charts based on digital models of entire environments
- Azure IoT – a collection of cloud services managed by Microsoft that connect, monitor and control billions of IoT assets
Microsoft has been a technological beast since the invention of the Internet. For this reason, it makes sense that Microsoft’s software is helping fuel the metaverse. When you finally log into the Metaverse, there’s a good chance Microsoft technology is helping fuel the experience.
Microsoft’s stock has grown by around 410% over the past five years and 35% so far in 2020.
Roblox (NYSE: RBLX)
Roblox is an American video game developer based in San Mateo, California. Roblox is unique because it allows its users to create video games. Once a user creates a game, other users can register to play it.
If you want to see more investment opportunities, check out these top video game stocks.
Of these three metaverse actions, Roblox would take care of the “fun” part. By that, I mean Roblox would play a role in the design of a digital metaverse. Microsoft would like to manage the “software” part. It involves making sure that everything is actually working. Facebook would take care of both.
Roblox said his vision for the Metaverse is “create an immersive co-experiences platform, where people can come together in millions of 3D experiences to learn, work, play, create and socialize.
Currently, Roblox is also in the process of designing Spatial Voice. This is an invitation-only beta program that allows Roblox users to communicate realistically online. This program would allow users to mirror their way of speaking in real life. It could play a vital role in creating a realistic digital environment.
In 2020, Roblox generated $ 923 million in revenue, up 81% year-over-year. However, he posted a net loss of $ 253 million.
Roblox just went public in 2021 and its stock is trading at about the same level.
Roundhill Ball Metaverse ETF (NYSE: META)
In all fairness, there are so many moving parts that go into the metaverse. This means that there are plenty of companies that have the potential to create great metaverse actions.
Here are a few other Metaverse actions that could have been on this list:
We’re still so early in the creation of the metaverse. It’s hard to say which companies will make metaverse creation a business priority. For this reason, it is much easier to invest in an ETF that tracks the best companies that are involved in the creation of the metaverse.
One ETF to check is the Roundhill Ball Metaverse ETF. You can read more about the breakdown of this ETF here.
To learn more about the early stage metaverse, take a look at my articles on the best VR and augmented reality stocks to invest in.
Hope you found this article on the best metaverse stocks to buy for value! As usual, all investment decisions should be based on your own due diligence and tolerance for risk.
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About Teddy Stavetski
A graduate of the University of Miami, Teddy studied marketing and finance while playing for four years on the soccer team. He has always had a passion for business and used his experience from a few personal projects to become one of the top rated business copywriters on Fiverr.com. When he’s not hammering out words on paper, you may find him hammering notes on the piano or walking to a random place.