Metaverse Stocks to Buy: Neal Stephenson, who coined the term “metaverse” in 1992, had an uncanny knack for foreseeing how technology would advance beyond the realm of fiction. What he didn’t expect was for his science fiction idea to empathize with people & attract the interest of companies & investors all over the world.
Stock market heavyweights are increasingly investing in the rapidly expanding metaverse. Now that metaverse stocks have become a major talking point on Wall Street, they are being closely watched by a large number of investors.
If you are curious about this investment option & are considering adding metaverse stocks to your investment portfolio, these 7 Best Metaverse Stocks picks will help get you started.
What Are the Best Metaverse Stocks To Buy?
It can be difficult to keep track of the many metaverse stocks that are gaining attention in the financial world at the moment. Here are seven metaverse stocks you could profit from in 2023:
- Meta Platforms Inc. (META)
- Nvidia (NVDA)
- Microsoft Corp. (MSFT)
- Take-Two Interactive Software (TTWO)
- Unity Software Inc. (U)
- Roblox Corp. (RBLX)
- Coinbase Global Inc (Coin)
Meta Platforms Inc. (META)
First & foremost among the best metaverse stocks to buy is, of course, Meta Platforms – the company that first truly popularised the term in 2021 & signaled its utter devotion to the concept by changing its name the same year.
Mark Zuckerberg, Facebook’s CEO, has long been an advocate for the concept, & he invested $2 billion to purchase virtual reality headset maker Oculus VR in 2014. In 2014, Zuckerberg made a jubilant Facebook post about the purchase: “Our goal is to make Oculus useful for a wide variety of uses beyond just video games.
Just by donning some goggles, you could be transported to a front-row seat at a game, a classroom filled with students & teachers from around the world, or a face-to-face consultation with your doctor.” Long-term investors should be well compensated if Meta earns even a fraction of all the commerce conducted via the metaverse.
Those returns will simply require faith & delayed gratification, as the company’s metaverse-focused Reality Labs segment lost $10.2 billion in 2021 & $5.8 billion in the first half of 2022.
No matter whether it’s a Dodge, Ferrari, or Rolls-Royce Phantom, four tyres are a necessity for every vehicle. And those tyres come from a small group of companies that all do pretty well financially.
To a similar extent, Nvidia provides graphics processing units (GPUs) that will be required by virtually all devices used in or contributing to the creation of the metaverse.
Gamers & crypto miners, for instance, were responsible for 514% of the increase in share price during the pandemic. And now that prices have leveled off, maybe now is the time to buy before institutional demand increases for this metaverse stock.
Microsoft Corp. (MSFT)
Microsoft grew into an industry powerhouse because of its widespread use in personal computers, video games, & cloud computing. It now seeks to broaden its influence into the metaverse.
With this goal in mind, Microsoft has teamed up with virtual reality platform developer Meta Platforms (META 2.17%) to provide VR experiences through the Microsoft Teams product. Mesh, a brand-new product from Meta, will link the company’s Teams app with Oculus headsets to create fully immersive environments.
Microsoft also made efforts to incorporate the metaverse into other platforms, such as video games. Microsoft hopes to break into the metaverse of video games by acquiring Activision Blizzard & expanding its Xbox ecosystem.
The firm has the financial wherewithal to make such expenditures. When the first quarter of the fiscal year 2023 ended, it reported having more than $107 billion in cash on hand. The latest quarterly free cash flow of about $17 billion suggests that these investments can continue.
Its stock lost roughly a quarter of its value in the past year due to the bear market. The result was a P/E ratio of less than 27, which is close to the company’s lowest valuation since early 2020. As a result of this drop in valuation, this technology mainstay may now be available at a discount.
Take-Two Interactive Software (TTWO)
CEO of video game publisher Take-Two Interactive poked fun at Meta in late 2021, saying, “We’re the biggest company in the metaverse [because] we’re already there.” He was referring to the massive success of the online anarchy simulator “Grand Theft Auto V.”
But it’s clear he isn’t dismissing the growth of the metaverse. A lot of people think Take-Two is getting ready to launch a full-scale “invasion” of the metaverse because it has reported doing exceptionally well & turning revenue into thousands of new hires.
Take-Two is unrivaled when it comes to in-app purchases, so this business move is sure to pay off. Although it has yet to fully capitalize on metaverse NFTs, the company is still making $2.5 million per day off of a game it released in 2013.
Zynga, which was just acquired by Take-Two for $12.7 billion, is the only company I can think of that could monetize gaming in the metaverse more quickly.
Unity Software Inc. (U)
Those aforementioned metaverse companies offer opportunities to invest in metaverse hardware, but Unity gives you a chance to bet on the software side of things, where all the action is.
Across mobile, PC & console platforms, Unity has established itself as the de facto standard for developing 3D video games because of its ability to facilitate the creation of the fundamental rules that govern virtual worlds.
The company plans to take a sizable chunk of the metaverse market & claims 5 billion monthly downloads of Unity-based apps. In an effort to recruit the next generation of developers, Unity provides free training sessions on augmented reality, immersive digital worlds & how to build in virtual reality.
The stock price as of December 2 was $40.94, which is a significant decrease from the IPO price of $52. Revenue is projected to increase by 20% in 2022 & by 30% in 2023, according to market watchers.
Roblox Corp. (RBLX)
Roblox (the game), which is owned by Roblox Corp, makes $3 million daily from the Apple App Store. To put that in perspective, $45 billion, or 27.2% of the total mobile gaming industry’s revenue, flows through that one game.
Who’s to say that Roblox won’t lose all its users overnight, long before the metaverse is complete? After all, mobile game popularity is a fickle beast. Roblox’s addictive, user-created content is what sets it apart from other metaverse stocks, in our opinion.
It’s a platform that lets you make your own video games & it looks like the lovechild of LEGO Star Wars & Instagram. In addition, Roblox hosts a thriving digital market where digital purses fetch prices in the thousands of US dollars.
So even if Roblox’s meteoric rise in popularity levels off, Roblox Corp. has the resources & know-how to capitalize on its fifty million strong user base of highly valuable millennial consumers.
Coinbase Global Inc (COIN)
No “best metaverse stocks” list is complete without including Coinbase. Investors will continue to guess which cryptocurrencies will come out on top as the metaverse draws near & the demand for metaverse-ready cryptocurrencies increases.
In reality, none of the top cryptos of today are likely to find work in the metaverse. Furthermore, Bitcoin’s chances of survival in the metaverse are probably lower than those of its demise.
However, this will not prevent the ensuing hysteria as people rush to buy cryptocurrency amid the rumors. Who exactly gains the most during a gold rush? Whichever company is responsible for selling shovels.
After the initial buying frenzy subsided, I became less optimistic about COIN’s long-term potential. My prediction is that once Meta, Microsoft & Apple unveil their own proof-of-stake cryptocurrencies made specifically for the metaverse, the price of Bitcoin will plummet.
As usual, dragging the share price of Coinbase down with it. Just like any savvy speculator would, I’d stock up on bargains, cash out when the going got good & leave town before the place went up in flames.