There’s no denying that the metaverse is going to be one of the defining market trends of 2022. Apple (NASDAQ:AAPL) is hard at work on an augmented reality (AR) device while metaverse momentum has sent other stocks such as Nvidia (NASDAQ:NVDA) and Matterport (NASDAQ:MTTR) to impressive heights. Plus, experts see promising things ahead for metaverse cryptos. One name that some of us might not have initially counted among metaverse stocks, though, is Best Buy (NYSE:BBY). One analyst has a different take, though. As he sees it, BBY stock could be among the winners of the boom that the dawn of the metaverse is about to usher in.
What’s Happening With BBY Stock
This morning brought the release of a news story that has had BBY stock rising throughout the day. Anthony Chukumba, managing director of Loop Capital, has issued a note in which he states that the company is “well-positioned to tap into enthusiasm for nonfungible tokens, gaming and socializing in a virtual world.”
This is exactly the type of coverage that can send a stock up, especially in 2022. As of this writing, BBY is up 1.3% for the day, showing a pattern of steady, albeit slow, growth. These gains have the stock in the green by 0.23% for the week. However, it remains in the red for the month by almost 3%. Best Buy rose consistently throughout October 2021, only to plunge in November by almost as much due to investors concerns about reported earnings.
Why It Matters
It goes without saying that the retail sector has taken a beating throughout the Covid-19 pandemic. Best Buy certainly hasn’t been immune to this. This new competitive edge, though, may be exactly what the stock needs to get back on track. Chukumba certainly thinks so. He raised his price target on BBY stock to $150, an increase of roughly 52% from where it currently trades. In addition, he reiterated the stock’s buy rating.
The case he made for BBY stock makes sense. The metaverse is going to continue driving interest in consumer electronics as new devices are pioneered and metaverse gaming is expanded. And for all the turbulence it’s seen in recent years, Best Buy remains the most established name in big box electronic sales throughout the country. It also provides both a physical location for curious shoppers to try devices with a team of experts who can advise them on the new technology. There’s a clear appeal to purchasing AR and virtual reality (VR) devices at Best Buy.
We’re also seeing more and more companies find ways to cash in on the metaverse boom. Analysts have praised Nike (NYSE:NKE) for its decision to expand into it, as well as for its partnership with fellow metaverse stock Roblox (NYSE:RBLX). Reports have indicated that Gap (NYSE:GPS) is considering venturing into the metaverse, as digital fashion becomes an industry of its own.
What It Means
The non-fungible token (NFT) enthusiasm of which Chukumba speaks is also increasing as metaverse momentum mounts. Best Buy is indeed well-positioned at the top of a field that some were counting out less than a year ago. The rush to acquire the newest metaverse tech absolutely has the power to breathe new life into the retail sector.
BBY stock has had a difficult season, but if today is any indication, it may be in for a turnaround. The race to the metaverse is in full swing and that means new devices that tech buffs will want. Additionally, companies are beginning to explore the concept of metaverse workplaces. These are all reasons to keep an eye on BBY stock in the months ahead.
On the date of publication, Samuel O’Brient 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.
