It’s time to get greedy with down, but not out on metaverse stocks to buy.
All as the digital world makes a comeback. For example, Disney (NYSE:DIS)—which just announced it will acquire a $1.5 billion stake in Epic Games—will work with the gaming company to develop a Metaverse featuring Disney characters that will coexist with Fortnite.
Also, as noted by Forbes.com, “According to the website METAV.RS, 74% of American adults are considering or have joined the Metaverse. And, by 2026, 25% of individuals are expected to spend an hour per day in the Metaverse.”
Even artificial intelligence is breathing new life into the metaverse. For example, according to TaylorStrategy.com, “Companies are now starting to explore the potential of how AI can play a role in creating more immersive and engaging virtual experiences in the metaverse.”
Also, despite the metaverse’s rollercoaster history, it could be worth billions. In fact, according to Grand View Research, it could be worth about $936 billion by 2030. That being said, investors may want to jump on the hottest metaverse stocks to buy. These include the following.
Roblox Corp. (RBLX)
Since late September, Roblox (NYSE:RBLX) exploded from a low of $26 to a recent high of $47.11. Even now, it’s still one of the top metaverse stocks to buy.
All thanks to growing demand, the metaverse comeback, and strong earnings. It may have lost 52 cents in the fourth quarter, but that was better than expectations. Bookings were up 25.3% year over year to $1.13 billion. Average daily active users jumped 22% year over year to 71.5 million. Monthly unique visitor numbers rose 18% to 15.9 million.
RBLX expects for first quarter bookings to come in between $910 million and $940 million, which is above expectations of $902.6 million. For the full year, bookings are expected to come in between $4.14 billion and $4.28 billion, which is above estimates for $4.06 billion. Plus, the company expects for its top line to grow by about 20% every year through 2027.
Even better, Barclays upgraded Roblox to Equal Weight, noting that, “RBLX’s execution has become much steadier since mid-2023. The longer-term framework of 20% bookings CAGR and 20% DITBA margin, with advertising entering the fray at some point, looks attractive.”
Unity Software (U)
There’s also Unity Software (NYSE:U), an oversold $12.5 billion software company.
Helping, analysts at Bank of America just reiterated a “Buy” rating on the stock, believing its well positioned for faster growth. In fact, as noted by Seeking Alpha, “The bank has faith that Unity will emerge better positioned to compete in a stabilizing mobile game market with improved profitability and strategic focus.”
Even better, the company is undergoing strategic changes to right the ship. That includes a new CEO and a recently announced 25% staff reduction. We also have to remember that Unity is working with Apple on immersive 3D apps for the tech giant’s Apple Vision Pro.
Roundhill Ball Metaverse ETF (METV)
Or, if you’d rather diversify, there’s always an exchange-traded ETF like the Roundhill Ball Metaverse ETF (NYSEARCA:METV), which just ran from about $9 to a high of $12.50. From here, as the Metaverse perks back up, I’d like to see the METV closer to $20 this year.
With an expense ratio of 0.59%, the ETF offers exposure to 47 metaverse-related stocks, including Roblox, Meta Platforms (NASDAQ:META), Apple, and Nvidia (NASDAQ:NVDA). This makes it an incredibly attractive Metaverse stock, and on you should grab for your portfolio.
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.
