3 Metaverse Stocks to Buy on the Dip: Summer 2024

  • Here are just a few top metaverse stocks to buy and hold today.
  • Roblox (RBLX): Macquarie just initiated coverage of RBLX with an Outperform rating.
  • Nvidia (NVDA): Driven by artificial intelligence, demand for its chips and strong earnings growth, it’s also exposed to the metaverse with its Omniverse software. 
  • Roundhill Ball Metaverse ETF (METV): It never hurts to diversify at a lower cost.
Metaverse stocks - 3 Metaverse Stocks to Buy on the Dip: Summer 2024

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The metaverse is still very much alive and well, creating opportunities for some of the top metaverse stocks.

At the moment, we’re seeing metaverse growth in gaming and e-commerce. We’re also seeing it in retail with IKEA and Nike (NYSE:NKE), for example. We’re seeing it with McDonald’s (NYSE:MCD) latest jump into the metaverse. Plus, we’re seeing it in advertising, health and wellness, education and live entertainment.

According to CoinTrust.com, the global metaverse market could grow 575% to nearly $500 billion by 2030.

But wait, there’s more.

As noted by TynMagazine.com, “According to Statista’s forecast, the total number of users in the metaverse landscape is projected to hit almost 2.6 billion by the end of the decade, four times more than the earlier forecast and three times more than this year. The total addressable market or the revenue opportunity for metaverse products and services in the conservative scenario, where 15% of the digital economy shifts to the metaverse, is expected to hit $1.9 trillion in this period.”

That said, I’d use every dip in metaverse stocks as a buying opportunity.

Roblox (RBLX)

An illustration of the Roblox game is displayed on a smartphone screen.
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When it comes to top metaverse stocks, Roblox (NYSE:RBLX) will always be a top pick.

For one, multiple companies are working with Roblox to jump into the metaverse. That includes Nike, Chipotle (NYSE:CMG), Gucci, McDonald’s and Forever 21 — to name a few. Two, Roblox is the closest thing to a mainstream metaverse. It builds out a human co-experience platform that enables billions of users to come together to play, learn, communicate and explore.

Three, recent earnings negativity appears to have been priced into the rebounding stock. Plus, analysts are bullish. Macquarie initiated coverage of RBLX with an Outperform rating, noting it’s one of the main “building blox” of the metaverse. 

MoffettNathanson also upgraded the stock with a $26 target after the sell-off in the stock. Better, as RBLX continues to pivot higher with the metaverse story, it’s a strong buy. 

Last trading at $39.82, the company just refilled its earnings gap in early May. From this price, I’d like to see RBLX run back to $47 a share initially.

Nvidia (NVDA)

Nvidia technology company displayed on cell phone. NVDA stock
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Recent weakness in Nvidia (NASDAQ:NVDA) is also a strong buy opportunity. Currently trading at $128.20, I’d like to see NVDA trade closer to $150 in the near term. 

While it’s been driven by artificial intelligence, demand for its chips and strong earnings growth, it’s also exposed to the metaverse with its Omniverse software. 

With it, companies can create and test virtual environments all in real-time. Foxconn, for example, is using the Omniverse to create a digital twin of its new factory in Guadalajara to train robots in a virtual environment.

Helping, analysts at UBS (NYSE:UBS) say NVDA could earn $5 a share in 2025 as budgets for hyper-scalers begin to firm up. The firm also has a $150 price target. 

Wolfe Research also raised its price target to $150, “noting that recent checks indicate a path to 50% or more content growth for Nvidia’s GPUs in 2025, with incremental upside coming from unit growth and better networking attach rates,” as reported by Seeking Alpha.

Roundhill Ball Metaverse ETF (METV)

Metaverse stock. gaming cryptos
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Or, if you’d rather diversify with an exchange-traded fund (ETF), there’s also the Roundhill Ball Metaverse ETF (NYSEARCA:METV). 

With an expense ratio of 0.59%, the ETF holds 40 metaverse-related holdings, all of which should benefit from the metaverse’s potential $5 trillion impact by 2030. Some of its top holdings include Nvidia, Meta Platforms (NASDAQ:META), Roblox, Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Qualcomm (NASDAQ:QCOM).

Fueling upside, “The Metaverse’s economic reach is anticipated to hit an impressive $10.7 trillion by 2033, signaling an era of unprecedented expansion,” said RoundHill Investments.

Two, “VR/AR headset shipments are forecasted to reach 31.1 million by 2026, indicating steady industry growth and market traction.”

Both could help fuel a significant upside for METV.

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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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

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