Analysts from Bloomberg Intelligence project that the metaverse might achieve an $800 billion valuation by 2024. This prospect attracts investors seeking prime metaverse stocks. Their options are diverse, encompassing company shares, virtual real estate, NFTs, and digital currencies.
These assets promise to unlock vast potential in the burgeoning metaverse market, opening doors to unique investment opportunities. The surge in the metaverse’s value will likely continue to pique the interest of investors aiming to capitalize on this innovative trend. For those keen on securing their place in this digital realm now may be the optimal time to explore and invest in these various asset types.
With that out of the way, here are the three best Metaverse stocks to buy.
Meta Platforms (META)
The company laid the groundwork for the metaverse vision in 2014 when it acquired the VR startup Oculus. In 2021, Mark Zuckerberg renamed Facebook Inc. to Meta Platforms (NASDAQ:META), defining the concept of development for the global IT industry for years to come. He introduced the metaverse concept into wide circulation, simultaneously explaining its concept to the masses. Immediately after the rebranding, the company’s shares experienced a significant decline, losing 46% of their peak value due to a prolonged fall. However, it is worth remembering that Zuckerberg is known for making calculated decisions, demonstrated by his successful acquisitions of Instagram and WhatsApp.
In 2022, Meta launched a public version of a new Oculus app called Horizon Workrooms. Using VR headsets, users can participate in meetings using avatars, view their computer screens, keyboards, and even collaborate on virtual whiteboards.
Amidst the global crisis, Meta securities quotes are quite dynamic, often moving 50 points a month. Even more importantly, the Metaverse is a trend that has been embraced by major online software developers like Google and Microsoft. Meta boasts a vast customer base, a powerful team of experts, stable funding, and a track record of successful products. Therefore, analysts have no doubt that Meta shares will begin to grow steadily in the near future. Given Meta’s leading position in hardware and its pioneering status in applications designed for work, it may achieve this growth sooner than its competitors.
Microsoft (MSFT)
One of the critical issues in the creation of metaverses is the availability of technological equipment. In particular, immersion in virtual reality is made possible by virtual and augmented reality (VR and AR) headsets that are affordable to most users.
Microsoft (NASDAQ:MSFT) was one of the pioneers in the market, releasing AR devices such as the HoloLens headset in 2016, followed by HoloLens-2. However, the main challenge lies in the high price tag of $3500, making it inaccessible to the average consumer. Nevertheless, in 2021, Microsoft secured a significant contract with the US Army to supply 120,000 HoloLens AR devices, generating $21.9 billion in revenue over the course of 10 years.
In the same year, Microsoft announced the Mesh platform, offering immersive mixed-reality experiences for users. Additionally, the corporation owns the popular cross-platform game Minecraft, boasting an impressive player base of 141 million worldwide.
In terms of the perspectives in the metaverse field, Microsoft holds two conceptual advantages. Firstly, the company has vast experience in various segments and has achieved commercial success in all areas it has ventured into. Secondly, Microsoft Corporation has shown support for Zuckerberg’s idea of the metaverse, which is not surprising given that the company owns the legendary Xbox console and regularly publishes hit franchises like Halo, Microsoft Flight Simulator, and Gears of War. It’s therefore one of those best metaverse stocks.
One of Microsoft’s most anticipated deals is a potential $75 Billion acquisition of Activision Blizzard Inc (NASDAQ:ATVI), which could establish them as a major player in the gaming industry. Despite the postponement of the deal due to disagreements with regulators, both companies plan to continue working together to resolve any lingering regulatory issues.
Unity Software (U)
Unity Software (NYSE:U) is another key player that will play a significant role in keeping the metaverse alive. The company develops an engine for creating cross-platform games, enabling seamless integration between users of computers, smartphones, game consoles, and virtual reality equipment.
By the end of 2021, Unity’s share of the gaming market was 61%. However, in 2022, the company’s shares experienced a decline, along with the bearish trend in the high-tech segment.
The company’s close association with the gaming sector positions it well to become a trailblazer in the web3 space. Unity’s software is believed to have been utilized in the development of over 60% of the world’s 3D content to date. It caters not only to game designers but also to metaverse development studios like BORN, which leverage the technology to render vast 3D objects in the metaverse for their clients. This makes it one of the best metaverse stocks.
Currently, Unity is actively collaborating with platforms such as Insomniac Events to create new virtual worlds. It is likely that Unity will play a central role in the development of the metaverse landscape since, as stated by Microsoft CEO Satya Nadella, metaverses, in essence, create games.
On the date of publication, Julia Magas did not hold (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.
