The Metaverse is rapidly becoming an explosive game-changer in the digital age.
For many businesses, lending virtual, augmented, and physical reality, the Metaverse represents a new adventure in digital space. But, due to the investment excitement, you might wonder which metaverse stocks are the real deal.
Keep reading to check out these five best Metaverse stocks to own this year.
What are metaverse stocks?
These stocks are in companies that make platforms that combine the real world, the virtual world (VR), and the augmented world.
Once the stuff of futuristic novels and sci-fi movies, merged realities create digital spaces that people can access from the comfort of their own homes. Because of new technology, virtual and augmented reality can change how we interact with the world and how we see the world.
Start-up metaverse platforms can transverse business and personal communications. For instance, Mark Zuckerberg recently announced that the company has increased its metaverse spending to $10 billion annually and has officially changed Facebook’s name to Meta Platforms.
Although the Metaverse can blur the lines between real life and online interactions, platforms such as Mirandus, Sandbox, and Decentraland allow users to interact with each other in multiple ways within a virtual environment. This means new ways to connect with work, friends, and family and changes everything from immersive gaming to online dating.
If numbers are anything, Wall Street experts predict that metaverse ecosystems, like the internet in the 1990s, will be worth trillions of dollars in the future.
As businesses pick up on the trend’s opportunities, investors, excited about profits in this emerging technological landscape, are also getting in on the action.
Five best metaverse stocks to own in 2022
Roblox is an online entertainment platform where people can gather to play videos and socialise in a vast, 3D virtual sphere.
RBLX stock has created a lot of excitement on Wall Street after going public last year.
Because a working metaverse is still in its nascent stages, Roblox’s online entertainment platform is likely the only digital space that interacts like a social metaverse. It does this by offering a “human co-experience platform” that empowers millions of players worldwide to interact with each other in diverse ways. This stock is also part of the ARK Innovation Fund, led by Cathie Wood, which bundles some of the most interesting technology companies together into one portfolio.
This means that people can make their own interactive games, look at pop culture content, or even live stream music events while playing a game.
For people who are not into games or socialising online, fashion takes a step into virtual reality on the Roblox video game platform.
Forever 21 partnered exclusively with metaverse creation firm Virtual Brand Group. Roblox users can now buy, sell, or adapt their stores to sell Forever 21 merchandise right on Roblox’s platform.
It looks like other fashion houses are also jumping on the bandwagon, and Forever 21 is not the first to take the plunge. Earlier, Ralph Lauren (NYSE: RL0 and Nike (NYSE: NKE) joined with Roblox to promote their products by advertising and engaging with users.
2. Meta platforms
With Facebook’s refocus move, Meta plans to switch to creating and expanding its own Metaverse in the future.
Despite its new direction, Meta also plans to continue its famous social media platforms, including Facebook, WhatsApp, and Instagram. In addition to its flagship social connection features, Meta comes out on top with social media experts and trailblasing virtual reality and augmented reality hardware products.
It is not surprising that Instagram has helped the company get more people to join its virtual world. Non-fungible tokens (NFTs) and other metaverse collectibles like this have helped the company get more people to join.
Meta will likely emerge as a leader in the metaverse world with its background and revolutionary technology.
Social media giants are not the only big contenders in the coming Metaverse.
Semiconductor superpower NVIDIA can develop powerful graphics chips to fuel virtual reality apps. These graphics processing units (GPUs) could bring the Metaverse forward from the drawing board and into reality.
As a result, NVIDIA’s Omniverse is gaining ground fast. The Omniverse is a subscription product that would create an income stream in the future. Omniverse’s platform also offers a variety of enterprise applications such as real-world simulations used to train robots and design collaboration options.
GPU power enables complex mathematical calculations to occur at the speed of lightning, making augmented and virtual reality work.
While the Metaverse might take years to appear, NVIDIA and its stocks are racing like wildfire through the stock market. NVIDIA’s annual revenue rose 65% last year in just nine months. In addition, the company’s generated revenue of $16.7 billion in 2021 ran earnings per share up to a whopping 132%.
This is a stock with runaway growth capabilities that could head up your metaverse stock list today.
4. Unity software
Undoubtedly, Unity Software is the best tool for making and running 3D interactive games that can be played in real-time.
Unity does not just offer game content. Its software tools give developers what they need to invent real-time graphics, run, and gain revenue from interactive 2D and 3D content that can run on mobile phones, PCs, tablets, consoles, VR, and AR devices.
Unity’s hopes to create the Metaverse became more concrete when they acquired Weta Digital. That’s because Unity combines cutting-edge software with Weta’s top-brand visual effects tools in a move that gets these tools into the hands of millions of creators and developers worldwide who can help make the Metaverse a reality.
If you want to keep an eye on Unity stocks this year, you should keep an eye on the company’s business, its visual effects tools, and its gaming abilities.
The final exciting metaverse stock to consider is Matterport, which gives space for spatial data. This allows businesses to digitise any space that they need.
In a fascinating twist that heralds a merge with virtual, augmented, and physical reality, Matterport is also an expert in digital twins. Digital twins are digital copies of actual objects or places. Matterport, for example, is used by Cushman, Wakefield, a real estate company, to make a digital portfolio of properties around the world with accurate dimensions and photorealistic copies.
Because Matterport specialises in this area, the company experiments in VR technology to map physical spaces, create digital copies, and maybe turn the Metaverse into a reality.
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision. London Loves Business bears no responsibility for any gains or losses.