The internet revolutionized the world, and experts believe Metaverse will be the next phase in the evolution of connectivity and information sharing by creating virtual worlds. Many are already hailing metaverse as Web 3.0, and are also heavily investing in a sector that's projected to be worth about $800 billion.
Like with any other emerging industry that has the power to disrupt the current order, it's important to get in the game early and acquire assets before the stock market exploits the newfound hype surrounding the new product and drives the price higher.
Yet many investors are not familiar with the concept of the metaverse, beyond the fact that Facebook announced it will change its company name to Meta Platforms Inc.
Before starting buying metaverse stocks it's important to learn, what's the virtual reality created by metaverse?
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Contents
What Is Metaverse
The concept of virtual reality is decades in the making, sci-fi authors have played with the concept for decades. But the term metaverse was coined in the 90s of the last century by writer Neal Stephenson.
Its modern adaptation focuses on virtual 3D worlds that improve social connections. Typically technology gets used for gaming, but there is potential for a lot more, and plenty of companies are investing billions and exploring the capabilities of the concept and tech tools that make it a reality.
This creates a lot of buzz in the stock market about virtual goods, and many see the metaverse adoption as a sure thing that can generate profits.
Meta Platforms that Offer Virtual Worlds
Integrated virtual environments are steadily becoming the norm. New devices are altering lifestyles. We only need to look at smartphones, which have made themselves irreplaceable accessories of daily life. People are working on the cloud, and self-driving cars are going to be a staple on roads.
Technology reshapes our reality, and the frontiers are expanding with new concepts, that are redefying what we perceive as virtual.
Most of the science fiction concepts of the past are coming to life, and many companies are hoping their virtual products will conquer the market.
Every corporation in the tech world has gotten in on the game, and the products offered are starting to influence their stock market valuation. Most investors are already propping up portfolios with stocks that look promising for the long run, buying cheap and planning to profit from dividends or selling the shares at future inflated prices.
It's time to identify some of the leading companies in the virtual world.
Meta Platforms Inc.
Facebook was one of the first companies to seriously enter the Meta race, back in 2014 when it started injecting billions of dollars in its metaverse concept.
The name change was another indicator of Mark Zuckerberg's determination to steer the company that pioneered social media into the next level of social interaction.
That Meta is making solid headway, is evident from the several patents the company recently received. Technology that incorporates users' biometric data is a large leap in creating a virtual world that improves the quality of what users perceive.
The metaverse offensive of Meta gets supported by its subsidiaries Oculus and Horizon. And the ultimate goal of Facebook parent Meta platforms is to commercialize the new platform and create a revenue stream from advertising.
Roblox
Gaming is the logical launching board for the concept, and Roblox is taking full advantage of it and is proving to be a popular game with millions of players that actively engage with the system.
And the key to success is the fact it's not just one game. But a versatile platform that integrates several games, created by developers from around the globe who offer entertaining content.
The company doesn't profit from the games itself, but by selling its virtual currency that users have to possess to access the games and the experiences offered.
The goal of Roblox is to develop its platform into a virtual scene for different immersive experiences including events such as concerts.
Achieving this plan is done with investments and the acquisition of other companies that have the technology to fulfill the vision. Revenues are constantly increasing for the company, making it a desirable asset in investors' portfolios.
Unity Software Inc.
Video games depend on engines, the software code is what makes it possible for developers to adapt their concepts and make all the fun staff possible, and creating the code is not easy.
That's why Unity Software which owns 2 3D video game engines, has a market edge over the competition, and when a company has a foothold in one area, they attempt to adapt the technology and enter other sectors.
This is the strategy implemented by Unity Software that offers applications for architectural, engineering, and animation industries.
The company is working on creating a platform that will enable adolescents to create characters similar to what major CGI studios worked on for blockbuster movies in the past. And teenagers will be able to impalement capability and creativity in the metaverse.
Autodesk Inc.
Autodesk is an old player in the design software niche and is publicly traded since the 1980s. The product created by the company enables architects, engineers, and designers to implement their visions for various projects in 2D and 3D.
The software solutions offered by Autodesk are a staple in most industries, and the revenue that numbers over a billion dollars, is not something the company is ready to give up on, so they have entered the race and started implementing virtual reality setting to their programs.
The company provides a suite of applications for creating virtual buildings, within VR and augmented reality.
With extensive experience in the industry, Autodesk is perfectly positioned to retain its leadership role by including metaverse.
Microsoft
The company is no longer a trendsetter, but its large infrastructure enables it to quickly adapt and improve new trends, something it proves with cloud computing.
With metaverse emerging as the next big thing in the IT industry, Microsoft is mobilizing recourse to position itself as another reliable player in the industry.
Unlike other companies, the IT giant is a trusted partner and with a suite of products on nearly every PC that makes remote work possible, metaverse will open a new frontier in the digital world and the Microsoft team will develop further.
The corporation invests in AI avatars that will improve virtual meetings, with an immersive environment.
Microsoft doesn't offer only business applications it's active in the gaming industry with Xbox, and the potential for developing metaverse within the company is nearly limitless, with attractive stocks to buy in the upcoming digital transformation.
Nvidia
It has a reputation as a prospective stock to purchase for the long run, and Nvidia's breakthrough success in the field of artificial intelligence has opened the door for carving out a significant chunk of the new metaverse market.
The chipsets produced by the company are currently a driving factor in computing power that performs complex calculations. That processing power is a requirement for the metaverse revolution.
The firm is not relying only on its expertise, it is aggressive in acquiring other corporate entities that develop appropriate technologies and implement their patterns in its systems in effect boosting the processing power that is necessary for a streamlined metaverse. A final aim is to create an end-to-end ecosystem.
Shopify
When people think of e-commerce they automatically associate Shopify with the purchases online, and that's not coincidental. The company has built a reputation for serving the needs of small businesses. It offers a platform that can get integrated on retailers' and other businesses' websites.
The development of the metaverse is dependent on a virtual economy. Shopify has the brand recognition to position itself as the platform for the digitalization of assets.
Stagnation is the biggest enemy of a company, and Shopify has constantly upgraded its services.
Recently it made a foray into metaverse commerce, by purchasing an augmented reality app, making it possible for users to observe purchases in their virtual space.
Another step was taken, with the launch of an NFT platform that makes it possible for digital creators to sell art directly to clients.
These two calculated moves will improve Shopify's position in the metaverse and make it possible to use the position to develop its influence in this virtual world.
By sticking to its core model, providing tailored e-commerce options for businesses. It's in a good position to retain the reputation of a leading provider, and its metaverse stock will keep rising.
Roundhill Ball Metaverse ETF
The popularity of metaverse has created several initiatives including an ETF tracking with Roundhill Ball Metaverse ETF being a solid option for investors to participate in a virtual world.
Created by venture capitalist Matthew Ball it strives to incorporate the whole spectrum of the metaverse. It has all the interfaces and the necessary infrastructure for creating content and providing the experience.
The ETF's holdings get comprised of gaming platforms, cloud solutions, and components stocks. Few of the prospective holdings are Tencent, Nvidia, and Microsoft.
On paper, it all looks good, but the ETF begin its operation recently, and typically investors want to see a degree of stability and results before starting serious fund investments.
Skepticism aside the ETF has accumulated over $100 million in assets. And volume has also started to increase.
Investors need to account for expenses, with META currently being pricy, when compared with similar companies.
However, it's still a good option for investors looking to profit from metaverse stocks in a wider stance.
Fastly
It's not a recognizable name like some of the other companies on the list but Fastly offers services in the areas of streaming media, security, e-commerce, and delivery.
The platform reduces the latency of decentralization and increases data transfer across borders of different countries.
Considering that metaverse is a complicated system, and that the virtual world is built from a large number of gigabytes, the capacities of Fastly are adequate to facilitate the functioning of the metaverse.
When compared with legacy web application firewalls the next generation offered by Fastly will provide scalability, and better efficiency, with reduced expenses. This is a large boost for the cloud network, and logically the stock will rise in value.
Metaport
Metaport is a video capture company that makes it possible for real estate agents to produce virtual presentations of their properties. Creating an option for buyers to have a walk-through of the space they are considering purchasing or renting. The option is a time saver and a solid protective option in a pandemic.
The company is use digital twins in other sectors, For example, retailers that are working on concepts for a store or architects that are designing houses. The collaborative approach reduces costs.
However, video capturing is not the only profit-making method for Metaport, the firm also o sells its different assortment of tools for designing space, but also the hardware that makes it possible.
The appeal of the company is evident from its third quarter, where over six million digital twins were created and uploaded to the platform.
It is the riskiest option of metaverse stocks because the startup still isn't profitable, despite its growth. Yet in the long-term, it can be a favorable option for investors that can see the potential.
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Conclusion
Metaverse is gaining traction in several industries, and most investors are following the development with great interest. The technology is promising to usher in a new era of virtual connectivity and immersive entertainment opportunities.
When the iPhone launched the smartphone revolution, Apple stock was far below its current price. Investors that we're able to recognize the potential of the technology quickly acquired stock that has multiplied in value since then.
The same mentality is driving the interest for the metaverse. And with the large number of companies that are offering their spin on the concept or are providing technology solutions to support further development.
It can be a challenge to choose the prospective stock. Our review lists the most reputable companies that are leading the way in developing metaverse.
FAQs
What Is a Metaverse Stock?
Metaverse stock relates to companies that produce services or products that are directly connected with the metaverse concept. These companies that are publicly traded frequently get identified as good prospects for metaverse stock.
What are the Best Metaverse Stocks?
The best way to locate the best metaverse stock is to look at companies that are leading the way in developing the technology. Currently, that is Meta Platform Inc, formally known as Facebook, but also Microsoft and Nvidia, are good choices, although many other companies can provide an option for stock that can generate profits in the future.
What Stocks are in Meta ETF?
The Meta ETF stocks include Meta Platform Inc, Nvidia, and many other companies.
Is Oculus Stock a Buy?
The Oculus stock looks promising for the long term, however current performance is not encouraging. Investors need to make a complete analysis and research the industry and decide what strategy they want to implement if investing in the stock.
