Despite the shared spotlight with advances in artificial intelligence, metaverse stocks to buy still attract big-time investment opportunities.
The metaverse continues to be a symbol of cutting-edge technology and an ideal market for investment. While tech giants work on building this digital world, it’s a great time to bet on metaverse stocks.
Considering that the development of this idea will take at least a decade, those who enter early could see a significant bump in the expansion of this concept, as it becomes more popular.
Furthermore, forecasts suggest a stellar growth rate of more than 30 percent per year up to 2033. This puts the metaverse among the most rapidly developing industries, which is why giants like HSBC (NYSE:HSBC) have launched a special fund to invest in this future landscape.
Therefore, these three metaverse stocks are an excellent investment opportunity for anyone interested in investing in the next big thing.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) consistently emerges as a top choice when exploring metaverse stocks to buy. Ranked as the seventh-largest global company, Meta actively drives technological progress. This prominent position, along with its stock price soaring 82% over the past year, emphasizes Meta’s crucial role in determining the future of the metaverse.
Meta has lost more than $45 billion in Reality Labs since the end of 2020. Yet, it remains a lucrative niche for investment under the leadership of Mark Zuckerberg, although at a slower pace now.
Additionally, the company plans to shift from the Workplace app to metaverse technology to create more innovations like the Oculus AR and VR goggles and Ray-Ban Meta Smart Glasses. This dedication could potentially result in further advancements.
Lastly, Meta is in a robust financial position. It generated a whopping $12.53 billion in free cash flow in the first quarter, which proves that it makes good money. Revenue skyrocketed by 27% year-over-year to $36.46 billion, and net income more than doubled in the same period. Thus, Meta has the financial muscle to fund the metaverse vision.
Immersion (IMMR)
Immersion (NASDAQ:IMMR) is changing how people experience virtual reality with its haptic solutions, providing feedback that improves user metaverse experiences.
Subsequently, Immersion strengthened its market position by substantial license arrangements in 2024. A February agreement with Meta Platforms allowed the use of Immersion’s patents for a broad range of products, underlining the increasing importance of haptics in VR.
Moreover, in March, the company renewed its agreement with Nintendo (OTCMKTS:NTDOY), thus ensuring that its technology is relevant in the gaming industry.
Furthermore, Immersion returned $15.7 million to shareholders in 2023. The company’s CEO, Eric Singer, credited this accomplishment to prudent financial allocation, renewable licensing and hard work in intellectual property protection.
These strategic measures led to an excellent Q1 for Immersion. Its revenues surged to $43.8 million, a 520% upswing YOY, beating analysts’ expectations by 18.91 million. Net income rose to $18.7 million, compared to $8.3 million a year ago. Additionally, Immersion’s debt-free status and solid cash reserves position it well to seize enticing growth opportunities.
Roblox (RBLX)
Similar to most social media platforms, Roblox (NYSE:RBLX) is eager to keep its young audience engaged, given that it has been in the metaverse business for quite some time now. To further this ambition, Roblox is opening up video ads on virtual billboards of such brands as e.l.f. Beauty (NYSE:ELF), Walmart (NYSE:WMT) and Warner Bros. (NASDAQ:WBD). These ads would monetize Roblox’s user base and significantly pump revenue streams.
While Roblox’s stock dropped after the Q2 guidance, the company reported strong Q1 numbers. Its revenues were up 22% YOY, totaling $801.3 million, and average daily active users increased by 17%, reaching an astonishing 77.7 million.
Looking ahead, Roblox has big plans for its platform and developer support. This includes the Immersion Mode, superior haptic controls, enhanced avatars and an upgraded marketplace. These improvements are intended to escalate user engagement, thus positioning Roblox to capture additional market share as the metaverse expands.
On the date of publication, Nabeel Bukhari did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
