Amid a fall in the broader indices like the S&P 500, especially for tech stocks that have dominated the headlines this year, this sell-off has led to the emergence of metaverse stocks to buy.
Although buying a stock on the way down might be considered risky for some, if investors want to buy low and sell high, this contrarian idea must be followed to lock in the most gains.
These metaverse stocks to buy, therefore, represent ripe bargains. So here are the best companies to add to your portfolio to help you invest like a millionaire in 2024 and beyond.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) defines one of those metaverse stocks to buy better than any option on the list. The company’s significant investments in virtual reality ( ) and augmented reality ( ) through its Oculus VR headsets and other initiatives make it a leading contender in the space.
There are a few good reasons to consider buying META. It experienced a significant surge in stock value, attributed to accelerated sales growth and strategic cost reductions. The company’s daily active user base grew by 7%, boosting engagement and ad sales, while operating income jumped to 40% of sales due to a 24% reduction in full-time employees.
There’s no sign that the momentum META has reported will slow down any time soon, and it is a must-have for dipping one’s toes into the metaverse itself.
At first glance, it might seem strange to see Nvidia (NASDAQ:NVDA) on this list. However, NVDA stock is at the forefront of creating graphics processing units (GPUs) essential for powering complex visual environments. Their technology is critical for rendering the immersive 3D spaces the metaverse will require.
In addition to the metaverse, NVDA also has other irons in the fire to fuel its growth engine moving forward. Some of these catalysts include AI, blockchain, gaming, and others.
NVDA’s stock price has rebounded after a slump, possibly due to investors reassessing concerns about U.S. restrictions on AI chip exports to China and the impact of persistent high interest rates.
However, the growth story is likely to continue for NVDA over the long run, which will likely become one of the most successful tech stocks the market has seen over the last few years or even a decade. It’s, therefore, one of those metaverse stocks to buy.
Roblox (NYSE:RBLX) is an online platform that allows users to create and play games. It is already a metaverse with a vast user-generated content ecosystem.
RBLX is one of those battleground metaverse stocks to buy, and there are compelling arguments for and against it. Bulls favor RBLX for its market position and potential for monetization, while bears point to financial instability and high valuation as reasons for concern.
Its ecosystem, however, is expanding. This year, it officially launched on PlayStation. It has also been widening the appeal of its games and content by pivoting away from being seen as a kid’s game to one that a more diverse audience can enjoy.
The main lever RBLX is pulling here is that as its ecosystem widens, so too does its ability to generate revenue from its points store, so it has the incentive to cast a vast net. By all accounts, management has been successful in executing this strategy.
With a price-to-sales multiple of only 8.5 times and trading near historic lows, it’s a speculative play worth using a modest position. As its fundamentals improve and its risk profile decreases, one can feel more confident buying additional shares.
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.