The hype has died down, but the virtual reality world known as the metaverse continues to be developed. Companies large and small continue to find ways to migrate to the digital realm that remains in the early stages of development. The firm Research and Markets forecasts that the metaverse could generate $700 billion of annual revenues for various companies by 2030, with those revenues growing about 40% a year between now and decade’s end. Many consumers also continue to believe strongly in the metaverse and its convergence with non-fungible tokens (NFTs) and other digital goods. Only a few weeks ago, it was reported that someone paid more than $100,000 for a pair of digital sneakers that can only be worn in the metaverse (more on that below). As the digital world continues to grow, we look at the three best metaverse stocks to buy for April 2023.
Metaverse Stocks to Buy: Meta Platforms (META)
Although it has scaled back the amount of money and resources it is putting into the metaverse, Meta Platforms (NASDAQ:META) remains a leader when it comes to the development of the virtual realm. At the end of March, Nick Clegg, the head of global affairs at Meta Platforms, insisted that the future of computing will still take place within the metaverse. The company also has a lot of sunk costs in the virtual world, having spent $13.7 billion on its development in 2022.
Additionally, the virtual reality headsets Meta Platforms has developed to help people gain access to the metaverse continue to sell well, though many people use them to play video games.
Still, the bottom line is that Meta Platforms is very involved with the metaverse, and it remains a top priority for the company that went so far as to completely rebrand itself to reflect its focus on the digital world. META stock has been a top performer this year, as it is up 80% since January.
Speaking of tech stocks that have rebounded strongly this year, how about Nvidia (NASDAQ:NVDA)? The semiconductor and microchip designer isn’t directly involved in the creation of the metaverse. However, its semis and chips are crucial components that make the virtual world possible. Without chips, the metaverse is not possible.
Nvidia most recently announced a partnership with Microsoft (NASDAQ:MSFT) to develop a new metaverse platform for the Azure cloud computing platform. The company has also introduced a new server called “OVX 3” that is built to create and operate the metaverse.
And Nvidia is also continuing to develop ever more advanced semiconductors and microchips that will help companies realize their vision for the metaverse.
Metaverse Stocks to Buy: Nike (NKE)
You might be thinking: “Why is a sneaker company mentioned in this article?” Nike (NYSE:NKE) is included because the athletic apparel company is doing more than just about any other firm to develop its brand and presence in the metaverse. Last fall, Nike announced that it was opening an online store and trading platform for virtual sneakers in the metaverse. Company executives also embarked on a six-city U.S. tour to educate consumers on web3, the metaverse and blockchain technology.
Nike now has an entire design team dedicated to developing digital sneakers and other products for sale in the metaverse. It has also filed multiple trademarks for virtual goods and opened a virtual world on Roblox (NYSE:RBLX).
Plus, Nike has purchased virtual sneaker creator RTFKT (pronounced ‘artifact’). Last year, NKE reported that it had earned nearly $200 million from the sale of non-fungible tokens (NFTs) and other digital products.
This March, Nike sold a pair of NFT sneakers called “Cryptokicks” for $130,000. The person who purchased the sneakers can wear them (where else?) in the metaverse. NKE stock has risen 33% in the last six months.
On the date of publication, Joel Baglole held long positions in MSFT and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.