The metaverse stands as the next frontier in digital evolution, effectively combining virtual and augmented reality, ushering in a 3D world that promises to revolutionize how we communicate, work and live. Metaverse stocks beckon with a siren call to investors, teeming with lucrative long-term potential.
Before plunging into the vibrant market, it’s imperative to understand the essence of the metaverse is pivotal.
Picture a dynamic ecosystem where social media, gaming, and cloud computing converge to build immersive experiences, unveiling a myriad of opportunities for discerning stock pickers, particularly for those looking at metaverse stocks.
According to Fortune Business Insights, the metaverse sphere is expected to grow at an annualized rate of an astounding 47.6% through 2029, a trajectory that delineates high-reward avenues for investments.
So, metaverse stocks promise a thrilling voyage into uncharted waters, where the digital and physical worlds seamlessly intertwine.
Meta Platforms (META)
Meta Platforms (NASDAQ:META), the tech behemoth once known as Facebook, continues to make waves as a frontrunner in the race toward realizing the metaverse dream.
With its stock climbing more than 100% this year, investors might wonder if this surge is solely riding on the coattails of the buzz around metaverse stocks. Before the metaverse became a buzzword, Meta was already setting its pieces on the virtual board with pivotal acquisitions like Oculus and Horizon.
However, this year, Meta’s comeback story is mainly linked to the commendable growth it attributes to its unshakeable foundation in social media, along with keen investments in AI and a penchant for cost efficiency.
Meta’s presence in the sector is tough to deny, holding a dominant 53.1% social media market share. Its innovative strides into AI-powered avenues across its suite of platforms are not just about catching up; they’re about pioneering new monetization horizons.
Verizon Communications (VZ)
Another of the metaverse stocks to consider buying is Verizon Communications (NYSE:VZ). Think if them as the unsung hero, the linchpin ensuring seamlessly smooth every virtual interaction.
Beyond its critical role in delivering impeccable AR and VR experiences, Verizon boasts incredible financial muscle. It positions itself as an excellent dividend stock, boasting a 7.9% yield and 18 consecutive years of growth.
Rumblings of an ESPN alliance and a jaw-dropping $18 billion operational cash flow from the first half underscore its robust footing.
The imminent dawn of the 5G Ultra-Wideband Network amplifies Verizon’s potential to redefine virtual realms. Adding to its metaverse credentials is its strategic partnership with Meta, the tech titan leading the charge.
With Verizon’s stocks priced enticingly low and TipRanks analysts forecasting a bullish 17% uptick, the telecom giant is poised for an impressive rise, making it an alluring prospect for forward-thinking investors.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) stands tall as a luminary in the evolving metaverse narrative.
Originally hailed for its pioneering GPUs, Nvidia’s transformative tech effectively steers digital innovations spanning various sectors. Recently, Nvidia’s financial scoreboard dazzled with a quarterly jump in sales to $13.5 billion, marking an incredible 101.5% CAGR over the past year.
Their profitability echoes louder, with GAAP earnings per diluted share of $2.7, outperforming expectations by 63 cents. But what vaults Nvidia into the metaverse limelight is its robust Omniverse platform.
Celebrated by Time magazine in 2021 as a top-tier invention, Omniverse isn’t merely a metaverse platform.
It’s a platform where 3D worlds meet digital twins, optimizing systems for unparalleled productivity.
As a testament to its evolution, Nvidia has empowered 2.5 million global developers with Omniverse, turbocharging it with an upgrade covering the OpenUSD framework and generative AI.
Roblox (RBLX)
With its roots deeply entrenched as a metaverse platform maven, Roblox’s (NYSE:RBLX) journey has been nothing short of inspiring.
While the post-pandemic era saw a dip in its bookings, the firm swiftly turned the narrative around.
The recent figures are a testament to its unyielding pursuit, showcasing second quarter sales of a commendable $680.8 million, translating to a 15% year-over-year growth. Add to this its robust bookings, ticking in at $780.7 million, up by a robust 22% annually.
Moreover, it’s surging daily user engagement that truly underscores Roblox’s mettle. With an eye-popping 65.5 million users diving into its realm, marking a 25% annual jump in growth, and devouring a staggering 14 billion hours, the platform’s appeal is undeniable.
However, the real game-changer is the Roblox Partner Program. This innovative venture should usher in a novel era of self-advertising within the metaverse.
By drawing in an eclectic mix of developers and heavyweight marketers such as Dubit, Playwire, and Dentsu, Roblox is looking to marry immersive 3D content and avant-garde advertising.
Qualcomm (QCOM)
Steering confidently into the metaverse sphere is Qualcomm (NASDAQ:QCOM), a semiconductor giant known for forging alliances with top-tier industry players, such as Mercedes-Benz (OTCMKTS:MBGYY) and Amazon’s (NASDAQ:AMZN) AWS.
Qualcomm’s market footing was further cemented when Apple (NASDAQ:AAPL) elongated its chip supply deal until 2026, propelling the stock up over 8%.
The metaverse narrative for Qualcomm continues to get spicier. Awaiting launch is the Mixed Reality Toolkit (MRTK), a collaborative marvel featuring Qualcomm, Apple (NASDAQ:AAPL), and Magic Leap.
Coupled with a massive $100 million metaverse investment fund, Qualcomm is ardently supporting trailblazers diving into the world of AR, mixed reality, and VR.
Echoing this robust strategy, CEO Cristiano Amon casts a vision, forecasting the metaverse’s industrial prowess soon outshining social and gaming domains.
Autodesk (ADSK)
Venturing boldly into the 3D design horizon, Autodesk (NASDAQ:ADSK) emerges as a potent contender in the burgeoning metaverse landscape.
With a formidable 31% market share in 3D modeling, Autodesk equips architects, artists, and designers with critical tools for sculpting immersive digital realms.
Its most recent brainchild, Autodesk Forma, embodies its commitment to innovation, aiming to redefine the architecture and designing sectors using AI-infused workflows. Yet, their alliance with the Alliance for OpenUSD (AOUSD) truly sets them on a metaverse pedestal.
Rubbing shoulders with industry behemoths such as Pixar and Apple, Autodesk aids in sculpting Pixar’s Universal Scene Description (USD) technology, a cornerstone in 3D scene creation.
Embracing OpenUSD ensures Autodesk remains instrumental in crafting the metaverse’s technical skeleton. This strategic play, centered on 3D ecosystem standardization, magnifies Autodesk’s vision of a fluidly interconnected metaverse.
Unity Software (U)
Despite the metaverse momentum, Unity Software (NYSE:U) is emerging as a dominant force. The platform commands 50% of the market share for game engine platforms that developers currently use and can effectively power around 60% of mobile games.
Renowned as the world’s leading platform for sculpting real-time 3D content, Unity’s horizons span far beyond gaming, embracing sectors including entertainment and education.
Recent performances have shown Unity outperforming Wall Street anticipations, notably in Q2, where revenues jumped to an impressive $533 million, boasting an 80% YOY growth.
Its audacious Wētā Tools division is an innovation poised to revolutionize digital entertainment. This division promises to democratize premium digital artistry by simplifying high-end VFX and content creation. As the metaverse landscape shapes our digital futures, Unity is a beacon of what’s to come.
On the date of publication, Muslim Farooque 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
