Whether you’re skeptical of the metaverse’s long-term vision or not, it’s undeniably evolving at leaps and bounds.
The groundwork has been set and continues to develop. From cryptocurrencies to virtual concert tickets to VR gaming, the metaverse is becoming an everyday part of our lives. This normalization has led to the emergence of metaverse stocks to buy.
Notably, some companies are faring better than others in navigating the changes. The metaverse stocks that follow have proven their business models have adaptability to withstand their evolution while also carving out unique competitive advantages.
So, let’s look at the best metaverse stocks to buy as we inch closer to the end of September.
Roblox (RBLX)
Roblox (NYSE:RBLX) is a pioneering metaverse platform developer that has shown impressive results with Q2 revenue at $680.8 million, marking a 15% year-on-year (YOY) bump. The company boasts 65.5 million daily users, up 25% annually. Also, it’s initiated the Roblox Partner Program to facilitate innovative advertising on the platform.
Impressively, RBLX stock saw early success in making a substantial pivot to include a broader demographic as part of its core user base. There are now more users over the age of 13, which wasn’t the case previously. This indicates a growing opportunity to create content that appeals to older counterparts as well as younger users.
Roblox is expanding geographically, witnessing growth in regions such as Europe and APAC. It has additional substantial presence in the U.S., U.K., and Canada. The vast majority of its content is user-generated, giving it an enduring appeal.
Qualcomm (QCOM)
Qualcomm (NASDAQ:QCOM) global semiconductor leader, is making significant strides in the metaverse, partnering with major companies like Amazon (NASDAQ:AMZN).
The company has launched a $100 million metaverse investment fund targeting creators in AR, mixed reality, and VR. CEO Cristiano Amon envisions the industrial applications of the metaverse taking greater importance to social media.
Based on its technicals and fundamentals, the upside shows it trades below its long-term averages. Also, Wall Street gave QCOM stock a buy recommendation. And its forward P/E ratio of 12.05 is lower than its trailing P/E of 14.27. This suggests analysts expect it to rise in the immediate future.
QCOM is also pushing the envelope of the metaverse’s possibilities in user experience. It announced a partnership with Baidu (OTCMKTS:BAIDF) this week to advance Extended Reality and generative AI technologies. This collaboration combines Baidu’s cloud and AI technologies with Qualcomm’s expertise in XR. The end goal is more immersive, dynamic, and engaging digital experiences.
Verizon (VZ)
It might seem strange to see Verizon (NYSE:VZ) on this list of metaverse stocks.
However, VZ plays a crucial role in the metaverse by providing the necessary bandwidth and infrastructure for AR and VR. The company also has a strong partnership with Meta Platforms (NASDAQ:META), with valuation holding at historical lows.
Verizon’s partnership in META is pivotal for the latter’s foray into cloud VR streaming and PC game streaming. Some recent filings suggest that META’s latest Quest 3 VR headset may support 5G features. Then, gamers and AR/VR enthusiasts would enjoy virtual environments anywhere using a high bandwidth 5G connection.
VZ stock has an average analyst consensus price of $57. This end figure implies a substantial upside from VZ’s current level of $33.16, thus making it an option investors should keep on their watchlists to buy.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
