3 Metaverse Stocks to Buy on the Dip: February 2024


  • Strike when the fire is hot in the metaverse now.
  • Roblox Corp. (RBLX): Analysts at Roth MKM just reiterated its buy rating on the stock.
  • Unity Software (U): It’s working with Apple on immersive, real-time 3D apps for the tech giant’s Apple Vision Pro.
  • ProShares Metaverse ETF (VERS): Diversification with top metaverse names is always smart.
Metaverse stocks to buy - 3 Metaverse Stocks to Buy on the Dip: February 2024

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The metaverse is coming back, creating a long list of hot metaverse stocks to buy.

Look at Meta Platforms’ (NASDAQ:META) Reality Labs, for example. While it saw a massive loss of $4.6 billion in its recent quarter, revenue stood at $1 billion. A year earlier, the Labs’ revenue was $727 million. “We’ve invested heavily in both AI and the metaverse and will continue to do so,” CEO Mark Zuckerberg added.

Despite the metaverse’s dismal history, it could be worth about $936 billion by 2030, according to Grand View Research. This is due in part to end-use industry demand from media and entertainment, education, and aerospace and defense.

With excitement only set to grow, investors may want to look into these top metaverse stocks to buy.

Roblox Corp. (RBLX)

Roblox Stock IPO
Source: Miguel Lagoa / Shutterstock.com

One of the top metaverse stocks to buy on pullbacks is Roblox Corp. (NYSE:RBLX). 

Over the last few weeks, Roblox slipped from about $46 to $38, where it found double bottom support. Further, analysts at Roth MKM reiterated its buy rating on the stock.

We’ll get more information from RBLX earnings on Tuesday. Roth MKM raised its estimates after a strong year of engagement for the company. The firm also “boosted fourth-quarter bookings expectations to $1.08B — reflecting 20% growth, in line with the rest of Wall Street — and raised its forecast for adjusted earnings before interest, taxes, depreciation and amortization to $188M,” as noted by Seeking Alpha.

Remember that RBLX is the closest thing to a mainstream metaverse, with about 70.2 million daily active users.

Unity Software (U)

In this photo illustration Unity Software Inc. (U stock) logo is seen on a mobile phone and a computer screen.
Source: viewimage / Shutterstock.com

Take advantage of the recent dip to $32 on Unity Software (NYSE:U). 

Down but not out, it’s cutting its workforce by about 25%. Focusing more on profitability, U is working with Apple (NASDAQ:AAPL). They are concentrating on immersive, real-time 3D apps for the tech giant’s Apple Vision Pro. Plus, with the metaverse showing signs of life, the company should see stronger demand.

Additionally, Bank of America just reiterated a buy rating on Unity.

“The bank has faith that Unity will emerge better positioned to compete in a stabilizing mobile game market with improved profitability and strategic focus. The wind-down of certain businesses will remove $300M in low-growth business that drags on profitability, and headcount reductions will result in savings of about $230M,” as noted by Seeking Alpha.

From its current price of $32.84, I’d like to see Unity Software initially retest $42.

ProShares Metaverse ETF (VERS)

An image of a person wearing a VR headset looking up, a nebulous digital cloud in the upper corner
Source: Vit-Mar/Shutterstock

Or, if you want to diversify at a low cost, check out the ProShares Metaverse ETF (NYSEARCA:VERS).

With an expense ratio of 0.58%, the VERS ETF tracks the Solactive Metaverse Theme Index, which tracks stocks most relevant to the metaverse industry. Also, each company needs to generate at least 50% of revenues from metaverse operations. Top holdings for the ETF include Advanced Micro Devices (NASDAQ:AMD), Meta Platforms, Amazon.com (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), and Microsoft (NASDAQ:MSFT).

Since November, the VERS ETF ran from a low of about $33 to a high of $43. It dipped to about $39.62 and is just starting to push higher again.

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

Article printed from InvestorPlace Media, https://investorplace.com/2024/02/3-metaverse-stocks-to-buy-on-the-dip-february-2024/.

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