What Are Metaverse Stocks?
The Metaverse is a virtual realm in which users interact with each other and with the virtual world, generally through avatars. Interactions can be used for social, business, or gaming. Metaverse stock is a gamble. Some are pure drama, that is to say, businesses that have nothing to do with the Metaverse. Other companies are software-based businesses that have already established profitable businesses but may be able to benefit from a new revenue stream.
Hardware companies can also be considered Metaverse stocks. In many respects, the Metaverse relies on the use of AR as well as VR headsets. Many growth stock gains from the Metaverse event as well as other Metaverse stocks are part of the Big Tech universe, with plans to profit from the latest experience and the latest technologies.
Roblox (NYSE: RBLX)
Roblox Corporation is an American video game developer based in San Mateo, California. This online entertainment platform is more than just a children’s game. It may be the closest thing to a fully realized Metaverse that exists today.
RBLX is spending some huge sums on talent and acquisitions to build its version of the metaverse. A prime example of this is the recent purchase of Gilded, a platform designed to connect different gaming communities.
Match Group (NASDAQ: MTCH)
The industry giant of dating is commonly known as the main company behind Tinder. It earns the majority of its revenue by providing users with upgrades and subscriptions to the apps’ features.
Take-Two Interactive (NASDAQ: TTWO)
This publisher of video games is the one responsible for hits in the industry such as Grand Theft Auto, NBA 2K, and Red Dead Redemption.
NVIDIA (NASDAQ: NVDA)
The company makes video and graphics processing chips that are used for AI in high-end computers. It is a cult investment and is now playing a major role in empowering the metaverse.
Nvidia’s (GPU) graphics processing units will see a huge demand shortly and since the creation of the Metaverse. Few companies can compete at the same quality as Nvidia in supplying virtual reality applications.
Unity Software (NYSE: U)
This company has one of the most famous 3D engines for video games and its technology is used in the most famous video games that are available. As a result, U Stock could be the ultimate stock for those who bet on the gamification of the metaverse. However, it’s not just programmers who create the metaverse. Artists will also play an important role.
Meta believes in the metaverse such that it changed its infamous title, Facebook, over the year. Meta thinks what’s next for social media or the natural evolution of technology is in the metaverse. To achieve this, it has made available Oculus VR VR devices, including Rift and Quest models, and is in the process of planning more.
Apple (AAPL) is also a business that is looking to the metaverse to improve its already phenomenal performance. There is a rumor that the company is preparing to release its AR/VR headset in 2022. It will then launch an upgraded version that is sleeker and lighter, slated for release in 2024. There is a huge potential for this given that the company’s 1.25 billion iPhone users are its primary customers.
The prospect of a new revenue stream to go with Apple’s iPhone, Mac and iPad is generating excitement for investors and has pushed Apple’s valuation to more than $3 trillion. Apple’s financial results for the fiscal year 2021 were awe-inspiring. Revenue rose 33 percent to $365.8 billion, and operating profit rose 64 percent to $108.9 billion. Additionally, diluted earnings were up 71% at $5.61. EPS grew faster than operating revenue due to extensive purchases of the firm’s shares.
Microsoft (MSFT) intends to leverage the Metaverse to help businesses compete in the marketplace. Microsoft Mesh for Teams today seeks to revolutionize the way virtual meetings are conducted by moving them from cameras to the Metaverse. With this program, participants can hold meetings; Provide talks, rehearsals, as well as other collaborative activities with AR/VR technology.
This is more important than ever, as it becomes more important as the “work from anywhere” movement intensifies. Companies should be able to keep a positive corporate culture and team activities at any distance.
Matterport is another intriguing undertaking in the Metaverse. It takes physical assets and digitizes them. Digitization can be used for design, operation, or other purposes of visualization.
Retail, real estate, construction, and hospitality are specific industries that benefit. The company has 439,000 customers and annual revenue of $111 million. The stock peaked at over $37.00 in late 2021 but is currently trading 58% lower than its peak.
Adobe (NASDAQ: ADBE) is currently considered one of the top companies in media technology. Although the company is best known for its Acrobat, Photoshop, and Creative Cloud products, it also offers a powerful tool for creating AR experiences. It is known as Aero.
Meta (NASDAQ: FB)
Previously called Facebook, Meta Platforms (NASDAQ: FB) is the company responsible for bringing the Metaverse idea to the forefront of investors’ thoughts. Most of the company’s revenue comes from ads in its Facebook and Instagram applications.
However, the Facebook family of Oculus VR headsets has delivered more headsets than other headsets on the market which makes the Meta the top choice for Metaverse-focused hardware. The company has invested billions in the development of apps and content that supports Augmented Reality or VR applications, which allows it to tackle various metaverse aspects.
Cloudflare (NYSE: NET)
The content delivery network (CDN) Cloudflare (NYSE: NET) was built using speed as a primary consideration. Cloudflare claims that its network is capable of delivering content in just 50 milliseconds or less than 95 percent of people worldwide. The scale of the network will be beneficial as the metaverse grows.
However, as we already mentioned Metaverse will be able to meet other requirements as well, and Cloudflare has been able to meet many of them. For example, Cloudflare already provides security solutions that block 76 billion threats per day. The company recently introduced a data storage product that can help meet the data storage needs of the metaverse at large.
Autodesk, Inc. (NASDAQ: ADSK)
Autodesk, Inc. (NASDAQ: ADSK) is one of the best-known software vendors. It manufactures and markets 3D simulation software, as well as other products, to professionals in various industries. Autodesk, Inc. Platforms allow the creation of complex and complex virtual 3D structures and objects. This makes it ideal for providing the tools needed to build the Metaverse.
It generated $1 billion in sales and $1.33 in EPS that wasn’t GAAP for the third quarter of its fiscal year that beat analyst estimates for both. Due to weak projections and supply chain issues, the price target for the company was lowered from $330 to $330 in November 2021 in the wake of Deutsche Bank.
QUALCOMM Incorporated (NASDAQ: QCOM)
QUALCOMM Incorporated (NASDAQ: QCOM) is an American technology company that develops semiconductors used in a range of devices, including smartphones, notebooks, and Internet of Things (IoT) devices.
Within the realm of the Metaverse, QUALCOMM is determined to be at the central point in the universe of digital technology through the power of tools that enable users to enter the world of 3D. QUALCOMM includes semiconductor products like the Snapdragon chipset and runs hardware like the Oculus Quest 2. Oculus Quest 2, a virtual reality device required to enter the Metaverse.
FSLY operates an edge computing infrastructure-as-a-service (IaaS) platform that brings servers and other equipment to the source of data creation. Fastly’s platform is capable of carrying up to 145 terabytes of data per second in 28 countries. In short, it reduces the latency and latency time of decentralization.
In addition to its potential as a Metaverse-related stock, FSLY also creates an interesting investment opportunity in its continued growth in cloud computing. However, Fastly trades at less than half of its price in 2020. Its peak was $125 so investors can grab a lot of their bubbly molten stocks.
The most important aspect in the world of virtual reality is that manufacturers want to create a solid market within their virtual boundaries. The digitization of the ability to pay for the creators of assets, currencies, and content is essential. This is where e-commerce specialist Shopify (SHOP, $1,528.06) is a good fit.
Shopify took two important steps this year that tap into the potential of Metaverse commerce. One of these AR applications is the acquisition of Primer. The app lets users see firsthand the impact of an acquisition or project within their own space. In the metaverse, this makes SHOP an effective tool that users can use to create a potential store or experience online shopping.
Roundhill Ball Metaverse ETF
In this example, it belongs to the Roundhill Ball Metaverse ETF (Meta, $15.75). It may be the most effective investment option for investors who want to experience the idea of this virtual universe. In all likelihood, the ETF has already amassed more than $100 million in assets. Volume has started to rise with META’s average 30-day daily volume of 250,000 shares. Additionally, investors should be aware of the costs. Currently, Meta is charging 0.75 percent of its annual cost. It’s also a bit high for a niche fund.