Despite their somewhat controversial nature, metaverse stocks still have a lot of gas left in the tank. These companies are redefining how we engage with the Internet. The metaverse may also already be here. From cryptocurrencies to non-fungible tokens (NFTs) to virtual concert tickets, the metaverse plays an increasingly important part of our lives.
Metaverse stocks today can be bought at a discount, with big names trading below their intrinsic values. So, if you are looking to load up your bags of shares with these companies, now might be an ideal time to start accumulating them.
Here are the best metaverse stocks to consider.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) is at the forefront of the metaverse trend. Most of its revenue comes from ads on Facebook and Instagram. However, its segment, Reality Labs, focuses on hardware devices and VR content. Its Oculus VR headsets are popular in the market.
Meta engages 38% of the global population daily, holding a lucrative second place in the global digital ad market. Despite substantial investments in the metaverse and AI without immediate tangible returns, Meta’s forward P/E ratio at 19x remains attractive compared to major tech peers.
Although slightly overvalued to Morningstar’s fair value estimate of $311, it’s still a buy due to being comparably undervalued.
Roblox (RBLX)
Roblox (NASDAQ:RBLX) is a virtual world that resonates as an early-stage version of a metaverse platform. It has evolved from a platform primarily for users under 13 in the U.S. to a global platform with a broader user base, hosting live events featuring celebrities and musicians.
RBLX’s stock has declined, impacted by slowing revenue growth and increased operating expenses, but there are potential catalysts for growth. The introduction of Roblox Connect aims to enhance user engagement, offering more immersive social interactions and monetization opportunities.
Another large development is that Roblox is now available on Playstation four and five. These developments expand the ecosystem further, with the goal of reaching a total of 1 billion users enjoying the game.
RBLX stock has lost 25% of its value year-to-date. This then presents some good buying opportunities for bulls. Shares trade at just 7.8x its sales. That metric is well below the average for the stock, thus making it one of the metaverse stocks investors can snap up at a bargain.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT), primarily known for its software products, also has capabilities in artificial intelligence that could be invaluable in developing the metaverse. Its partnership with leading AI company OpenAI and powerful cloud-computing product Azure are notable.
Microsoft has some key initiatives to help boost its footprint in the metaverse. The acquisition of Activision Blizzard signifies a strategic move toward the metaverse, focusing primarily on business communications and gaming. CEO Satya Nadella emphasizes the development of metaverse applications across various domains, including business and productivity, integrated on a common platform like Microsoft Mesh.
“This acquisition will accelerate the growth in Microsoft’s gaming business […] and will provide building blocks for the metaverse,” Nadella said. “We are building, quite frankly, metaverse applications, if I could call them that. Or experiences in business applications, in productivity tools, and meetings and games — all three on a common platform.”
It’s clear MSFT is becoming a prominent player in the metaverse, which may give investors an extra reason to buy the stock today.
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.
