While artificial intelligence may have taken over the technology ecosystem at the moment, that doesn’t mean investors should ignore other components of the innovation space. On the contrary, sectors such as virtual reality stocks to buy may offer attractive entry points. Again, people may be distracted with AI, which potentially offers a discounted play on other relevant sectors.
Regarding VR specifically, this innovation represents the next level of immersive digital experiences. What’s compelling here is that the technology isn’t just for entertainment though that is one of the key uses. However, it’s also important to note that several other industries (including government agencies) utilize VR for training purposes.
Lastly, the sector enjoys a massive total addressable market. According to Grand View Research, the global VR sector reached a valuation of $59.96 billion in 2022. Experts in the field believe that the space could expand by a compound annual growth rate (CAGR) of 27.5% from 2023 to 2030. At the forecast culmination, the ecosystem could be worth $435.36 billion.
That’s good money. With that, below are three virtual reality stocks to buy.
Meta Platforms (META)
Formerly known as Facebook, Meta Platforms (NASDAQ:META) is one of the world’s biggest tech companies. Its mainline business centers on its gargantuan social network, which doubles as a data goldmine. However, the company has increasingly pivoted to many other sectors in the innovation space. Right now, Meta happens to be one of the top virtual reality stocks to buy.
Meta’s Oculus VR headsets offers both gaming and professional applications. Further, the company has and continues to invest heavily in the metaverse. This virtual environment represents a potential pathway for VR hardware, making Meta an integrated player. Best of all, investors can rely on more than mere narratives. Over the past four quarters, Meta’s average earnings per share landed at almost $4.26.
This performance translated to an average earnings surprise of 9.93%. During the trailing 12 months (TTM), Meta posted net income of $45.76 billion or earnings of $17.39 per share. Revenue in the period hit $142.71 billion.
For fiscal 2024, EPS may rise 35.9% to reach $20.21. Sales may see a lift of 17.7% to $158.82 billion. It’s easily one of the virtual reality stocks to buy.
Roblox (RBLX)
Based in San Mateo, California, Roblox (NYSE:RBLX) falls under the communication services sector. Specifically, it’s involved in electronic gaming and multimedia. Per its public profile, Roblox develops and operates an online entertainment platform. Notably, its Roblox Studio allows developers and creators to build, publish and operate three-dimensional experiences. What makes RBLX enticing for virtual reality stocks to buy is the functionality it brings.
Roblox supports VR gameplay, allowing users to experience gaming content through an immersive platform. Further, its community of grassroots developers can (relatively) quickly bring VR titles to the table. Over time, demand for participation in this network could rise. To be fair, Roblox isn’t generating earnings. However, it has consistently mitigated expected losses per share.
During the TTM period, Roblox printed a net loss of $1.15 billion or $1.86 per share. However, revenue in the cycle hit $2.95 billion. For fiscal 2024, experts see a loss per share of $1.70, an improvement from last year’s $1.87 in the red. On the top line, sales could rise 14.7% to hit $4.04 billion. And in the following year, revenue could move up again to $4.79 billion.
Kopin (KOPN)
Headquartered in Westborough, Massachusetts, Kopin (NASDAQ:KOPN) falls under the electronic components industry of the tech ecosystem. The company along with its subsidiaries invents, develops, manufactures and sells micro-displays, subassemblies and related components for various entities, including those in the defense sector. Kopin is a powerhouse in the field of training and simulation headsets, making it one of the enticing virtual reality stocks to buy.
Thanks to its strong portfolio of military training applications, Kopin is incredibly relevant, especially in the present geopolitical climate. However, it’s super risky. Up until late April of this year, shares trade hands above $1 – and sometimes above $2. Unfortunately, it also slipped into literal penny stock territory. About the only good news is that the bulls are attempting to fight their way out of this muck.
In the TTM period, Kopin incurred a net loss of just under $50 million or 42 cents per share. Revenue during this time reached $39.67 million. For fiscal 2024, analysts admittedly see an unfavorable expansion of red ink to 36 cents per share. However, revenue may rise 12.5% to hit $45.43 million.
On the date of publication, Josh Enomoto 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.
