The metaverse may be seen as many different things. Is it just a transitory trend in the IT sector and a catchphrase that will disappear tomorrow, or is this the beginning of a new era in which technology permeates every aspect of human life? Is this an exciting new age that would better our lives and our relationships, or just another giant leap for humanity toward digital media at the expense of face-to-face contact and the great outdoors? You might be excused for waiting for additional proof of concept before putting money into the metaverse, however, if its capacity is as great as a few in the industry believe it to be (McKinsey predicts it may generate up to $5 trillion in value by 2030), then we’re only in the early stages of a potentially revolutionary economic shift. Here are the top 8 metaverse stocks to purchase in 2023, as well as a separate list of metaverse stock prices, for individuals who want to get exposure to this emerging yet very risky technology.
Meta Platforms Inc.
Meta Platforms, the firm responsible for popularizing the phrase “metaverse” in 2021 and signaling its absolute adherence to the idea by changing its name the same year, is, of course, the greatest metaverse stock to purchase. Oculus VR, a developer of VR-based equipment, was acquired by Facebook in 2014 for $2 billion due in large part to the efforts of Facebook CEO Mark Zuckerberg. Beyond games, we aim to create Oculus as a foundation for a variety of activities,” Zuckerberg wrote regarding the acquisition on Facebook in 2014. Put on your VR goggles at home and you can experience being courtside at a game, in a classroom with students and instructors from across the globe, or in face-to-face consultation with a doctor. If Meta makes even a small percentage of every transaction done in the metaverse, long-term traders must be amply compensated. Given the firm’s Reality Labs unit’s concentration upon this metaverse and subsequent losses of $10.2 billion during 2021 plus $5.8 billion through the initial part of 2022, achieving such profits would need faith and perseverance.
Even though Snap’s stock has declined 78% year-to-date and the company reported weak earnings for the second quarter, many experts are still optimistic about the company.
The Q2 revenue and profit shortfalls were the result of a slowdown in advertising across various sectors due to the challenging macroeconomic environment.
Snap’s top revenue growth is in pace with that of TikTok, according to SensorTower, as well as the company’s under-monetized features in Maps/Spotlight, in addition to the long-term ARPU advancement possibilities, giving us confidence that the stock will eventually benefit from a resurgence in the industry. He continues by saying that with the current drop, SNAP stocks are selling at a reasonable price.
Can money be made by investing in Snap, the upcoming great things in technology? Even though the corporation’s CEO has been quite vocal about his disdain for the metaverse stock, at least as Mark Zuckerberg envisions it, the reality is that this is the case.
Snap, meanwhile, is not diverting its attention from building augmented reality technology for use in its Spectacle smart glasses. This means that, say, Snap might not be doing the metaverse stock sport by meta’s terms, however, it is successful in providing the AR glasses that allow the immersive augmented reality immersion that consumers are desiring.
Apple has been patiently waiting for the right moment to announce its final game in the metaverse.
Apple’s introduction of the ARKit programming tools in 2017 marked the company’s formal acceptance of AR. It has also been revealed that AAPL’s AR headgear, which has been under development in secret for years, was shown to the company’s board of directors at the beginning of this year.
Tim Cook, CEO of Apple, has championed innovation for years. Stay tuned and you’ll see what they have to offer; he is optimistic about the prospects in this area.
The anticipated Apple augmented reality headset is expected to debut at the beginning of 2023. When that time comes, look for AAPL to aggressively promote the AR headset and associated services to its nearly 1.8 billion active devices across the world as of January. An overnight rise to prominence in the metaverse is in store for the corporation.
Until then, doubts about Apple’s ability to keep up with iPhone demand will persist. Dow Jones stocks are down more than 8% this year, however with the AR/VR hype train about to take off, now might be a good time to get in.
The chief information officer of Wealth Consulting Group, Jim Worden, believes that “consumer discretionary spending on augmented reality and virtual reality may also slow down” due to global inflation and the possibility of slowing economic growth or a recession. Because of this, he believes that the best place to put money into the metaverse stock is in the hardware firms supporting the software that explores the boundaries of what is possible and ethical in the medium. One such business is Nvidia, a $420 billion chipmaker that just surpassed Intel Corp. and Broadcom Inc. in market capitalization to become the most valuable semiconductor company in the world. Nvidia is positioning itself to capitalize on the expected rise in want for computational power that would follow with the introduction of the metaverse since it is currently the go-to provider of top-tier computers in AI, virtual currency mines, and games. Nvidia’s dominance in the multiprocessor unit industry offers NVDA stock with some other evident metaverse-related development triggers, although if Nvidia’s personal 3D design arrangements are in place, Nvidia Omniverse is not really a treasure.
The stock price of Walt Disney has dropped by roughly 30 percent in 2022. The firm took a major hit during the epidemic as amusement parks and cruises were canceled and movie theaters were left vacant. And its pandemic star Disney+ streaming television program is seeing membership growth halt.
This is not a hopeless situation, however. As the impacts of the virus lessen, visitation is rising at amusement parks and cruises have resumed. The movies are back.
Disney has a huge potential for future expansion in the metaverse. In other words, this is not a business that will be developing the necessary gear or software to enable users to engage in virtual experiences. Still, DIS stands out as the biggest entertainment and media firm in the world by market capitalization. It holds important properties like Marvel and Star Wars.
Not only are firms like Meta Platforms and Nvidia vying for a piece of the metaverse, but Meta’s Oculus series of headgear isn’t the only one out there. In 2021, Microsoft signed a $22 billion deal with the U.S. Army to deliver updated versions of the headgear. The recently announced $69 billion acquisition of video game developer Activision Blizzard Inc. will provide immediate access to 361 million monthly active users and a plethora of innovative networking and gaming experiences. Microsoft is now expanding its metaverse initiatives to the digital workplace, where it believes that the use of avatars in its Teams collaboration software will lead to improved professional connections, a stronger feeling of community, higher levels of employee retention, and higher overall output.
Advanced Micro Devices Inc.
Worden also cites Advanced Micro Devices, a California-based semiconductor manufacturer, as a hardware company that stands to gain from metaverse investment. After Meta Platforms revealed that it will be using AMD as its chip source, the company’s stock price increased around the beginning of November 2022. This “may be like the pick and shovel firms during the gold rush,” Worden adds. A lot of people went looking for gold, but only the people who made and sold shovels and picks made any money. As Worden puts it, “Whoever wins will need to build it on the strongest, most robust, and most adaptable hardware stack that will allow software developers to push the boundaries even further in terms of what can be done,” even if it’s too early to tell who will come out on top in augmented and virtual reality.
Roblox Corp. (RBLX)
Next, we’ll look at Roblox, a platform and game that encourages its players to create their own content. Roblox, which has over 50 million DAUs and is often cited as one of the early pure bets on the metaverse, has its digital economy, complete with its digital currency, Robux. Roblox has either lasting strength or a fad quality, depending on your point of view, since the vast majority of its users are children. Virtual concerts and other 3D experiences appeared on Roblox in the early months of the epidemic, and this fact cannot be disputed. COVID-19 fueled its quick and unsustainable expansion, yet the business still lost $0.50 per share in the third quarter of 2022 despite a 2% increase in sales. In 2023, revenue growth is projected to pick up and reach around 15%.
The Metaverse will eventually replace the existing Internet and create a seamless hybrid reality.
Furthermore, it is intended to provide investors with access to this emerging technology by highlighting businesses working on metaverse infrastructure, virtual world development, and the creation of groundbreaking content, commerce, and social experiences.
Apple, Nvidia, Amazon, and Meta are just a few of the large-cap firms in its portfolio. However, there are also promising startups and non-tech categories like Nike that are attempting to make metaverse-related movements.