Metaverse stocks won’t make you an overnight millionaire. But with a good deal of patience, they could still make you some good money.
Precedence Research predicts the global metaverse market could be worth nearly $2.3 trillion by 2033 from $92.46 billion in 2023. Also, corporate giants are racing to use the technology. That includes IKEA, McDonald’s (NYSE:MCD), Hugo Boss (OTCMKTS:BOSSY), Nike (NYSE:NKE), Adidas (OTCMKTS:ADDYY) and Walmart (NYSE:WMT) to name a few.
Even governments in the UK, South Korea and Saudi Arabia are investing in it. The Saudis, for example, are investing $1 billion in metaverse projects as part of its Vision 2030 plan.
Here are three of the top metaverse stocks you may want to jump into for the long haul.
Roblox (RBLX)
A pure play in the metaverse, Roblox (NYSE:RBLX) is a buy on weakness. After rallying from about $30 to a high of about $42, it slipped to $36.53 thanks to the broad market pullback. From that last traded price, I’d like to see it initially retest $42.
Additionally, earnings, and guidance have been strong. Bookings, for example, are now expected to range from $4.18 billion to $4.23 billion compared to prior estimates of $4 billion to $4.1 billion. Its free cash flow estimates were raised to a new range of $505 million to $535 million from $350 million to $420 million. And it now sees revenue of between $3.49 billion to $3.54 billion, up from $3.45 billion to $3.53 billion.
Plus, in its most recent quarter, the company’s average daily active users were up about 21% year-over-year to 79.5 million. Its net loss of $207.2 million was also an improvement from a year-earlier loss of $282.8 million. Revenue jumped 31% higher to $893.5 million.
In short, there’s a lot to like with RBLX, especially its recent weakness.
Autodesk (ADSK)
Autodesk (NASDAQ:ADSK) is best known for developing AutoCAD software to help create 2D and 3D designs. It’s also another one of the top metaverse stocks to buy.
Better, its AutoCAD is becoming an essential piece of software in creating virtual worlds for gaming and entertainment. It’s also becoming a top pick for those developing the metaverse. Its Revit tool, according to InvestorPlace contributor Divya Premkumar, has “propelled Autodesk to the forefront of the metaverse, making ADSK a compelling play.”
Additionally, activist investors at Starboard Value just took a $500 million stake in ADSK, pushing for the company to improve margins and to make changes to the board.
Plus, earnings haven’t been too shabby. In its first quarter, the company’s earnings-per-share of $1.87 beat estimates by 10 cents. Revenue of $1.42 billion, up 11.66% YOY, beat by $17.75 million.
Analysts at Citi also reiterated a buy rating on the ADSK stock with a price target of $286 following first-quarter numbers.
Fidelity Metaverse ETF (FMET)
You can always diversify with the Fidelity Metaverse ETF (NASDAQ:FMET).
With an expense ratio of 0.39%, the oversold FMET ETF appears to have recently caught double-bottom support from April. Like most other stocks and ETFs, it’s also getting beat up by the latest overdone market pullback.
At the moment, the ETF holds 52 metaverse-related stocks that are part of developing, manufacturing, distributing, or selling products or metaverse services, according to Fidelity.com. Some of its top holdings include Adobe (NASDAQ:ADBE), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG, GOOGL), Meta Platforms (NASDAQ:META), Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) to name a few.
On the date of publication, Ian Cooper did not have (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.
