Metaverse is one of the most emerging terms for a digital universe where you can connect with others through AI avatars. It is an interactive digital ecosystem driven by mesmerizing technologies of Augmented and Virtual Reality. Generally speaking, the Metaverse will be a blend of the internet, VR, AR, NFT, and cryptocurrencies. Experts value this concept as the next big sensation in the evolution of technology. Metaverse will be used by the masses while staying in their homes. Therefore, it will spark a new economy by addressing a massive market at a time. The metaverse market is projected to grow tremendously at a CAGR of 13.1% to hit $800 billion in 2024, which was just worth $479 billion in 2020. Brandessence Market Research summaries another report outlining that by the end 0f 2027, the metaverse industry will be growing at a CAGR of 44.8%. This considerable growth projection in the metaverse industry is based on the involvement of giant players in the trend. Several tech beasts are on the way to breathing life into the sci-fi concept of the Metaverse. These metaverse companies offer a great opportunity to investors. They can get impressive returns by investing in Metaverse stocks.
In this blog, we will discuss how some giant players are forging forward to develop the Metaverse and what are the best Metaverse Stocks to buy in 2022. Let’s explore!
How are Metaverse Companies Positioned to Monetize on the Metaverse?
The Metaverse is approaching us as the most significant evolution in the technology world. Bill Gates believes that the virtual meetings conducted at 2D zoom interfaces at present will shift to Metaverse in coming years. He further claims that VR would shape the future of online meetings instead of Zoom or Teams. VR market is predicted to grow at a CAGR of 15% in the coming years. IDC reveals that worldwide VR shipments were 11.2 million units in 2021 (at 92% YoY growth). It further predicts that global shipping units of VR/AR will reach 15.73 million in 2022 and will hit 18.8 million in 2023. The AR and VR market size is projected to increase by $162.71 billion at a CAGR of 46% from 2020 to 2025. Analyzing its hype and scope, numerous enterprises are investing billions of dollars to dominate this futuristic concept. These metaverse companies that create or use VR, AR, AI, or similar technology will undoubtedly boom in the virtual world ecosystem.
Why Invest in the Metaverse Stock?
Investing in the Metaverse is one of the most trending strategies at present. Metaverse technology has opened various doors for investors to invest. It offers numerous attractive ways, such as investing in metaverse crypto or NFTs, buying metaverse land or building, etc. Out of all the investment options, purchasing shares of the companies supporting Metaverse is the most convenient and trending way to invest in this emerging technology. The investors are uncovering the potential among the stocks of metaverse companies. These Metaverse Stocks would rise as the technology adoption in the Metaverse continues. It would not be wrong to say that among the various opportunities metaverse technology offers to the investors, Metaverse Stock is the best fit for those who want to be a part of Metaverse without buying any in-game virtual item.
Best Metaverse Stocks to Buy
Metaverse is ready to emerge as a multi-billion dollar industry. PwC projects that the metaverse market will grow above $1.5 trillion by 2030. Several tech giants are ambitious to facilitate this digital revolution and are set to cement the niche of Metaverse. They are outpacing and striving hard to dominate the Metaverse. So, this is the high time for investors to approach this emerging trend by capitalizing on the Metaverse Stocks.
Let’s discuss some best considerations for Metaverse Stock Investment!
1. Meta Platforms Inc. (NASDAQ: FB)
Meta Platforms, earlier known as Facebook, have 2.9 billion active users per month and lead the way in introducing the metaverse trends to the investors. It is embellishing our social media experience through its various features. FB founder Mark Zuckerberg believes that Metaverse will be the upcoming chapter in his company's development. It stands in an excellent position to build metaverse offerings while incorporating FB, Insta, and WhatsApp. Meta’s revenue in 2021 grew to 117 billion, most of which stems from digital advertising. Meta generates most of its revenue by displaying ads on FB and Instagram apps. It already spearheads VR and AR technology. It is investing billions in developing the content for VR and AR applications to address various aspects of the Metaverse. Since augmented and virtual reality is the antecedents of the Metaverse, Meta Stock is a profitable opportunity for the investor.
Why is Meta Stock a Fantastic Investment Opportunity?
Meta Stock is an excellent attraction for the investors because of the company's below-enlisted metaverse initiatives:
- Facebook Reality Labs (FRL) – selling virtual reality content and AR/VR hardware. As per Meta, its reality labs generated $2 billion revenue in 2021.
- Oculus VR headsets – In 2021, 10 million units of Oculus Quest 2 Headsets were sold out, making Meta the best stock for VR hardware. Its tremendous ongoing sale stamps its bulk market share in Virtual Reality.
- Horizon World – a social experience announced by Meta in 2021 to let the users explore, play, and sell digital items in the virtual environment. Meta initiated to give free access to this biggest metaverse app. With this open access, people will also explore its Arena Clash – a laser tag game. Game designers may also access several creator tools. This free access to Horizon Worlds is a positive catalyst for the metaverse expansion.
Meta's Project to transform the Virtual environment through Voice Commands
CAIRaoke Project – Meta is working on this AI project to create some conversational AI for virtual worlds creation. Its research team is working to develop a voice-powered “builder bot ."This AI bot will allow its users to transform their virtual environment through voice commands. Mark Zuckerberg, in an interview, gave the demo to describe the functioning of this builder bot. In his demo, he was seen in a legless 3D avatar. He used his speech commands to create a beach scene. He added clouds, a picnic table, plants, and his signature hydrofoil. He also created sound effects of sea birds and ocean waves in his immersive environment.
Based on all the game-changing initiatives, there is a good reason for investors to consider Meta the best stock as it has unarguably a fantastic prospect to gain maximum from Metaverse – the Mirror World.
2. Nvidia Corp. (NASDAQ: NVDA)
Chip giant Nvidia is an outstanding stock that can leverage its GPU power and 3D content creation to dominate the metaverse space. Nvidia's annual revenue in 2020 was $10.9 billion. In 2021, its yearly revenue was $16.7B at a growth rate of 53%. In 2022, its revenue is projected to hit $27B at a 61% growth rate. Let's look at a few prime attractions for the investors in Nvidia to make it the best metaverse stock for 2022.
- Omniverse Enterprise:
Nvidia introduced its Metaverse creation platform "Omniverse Enterprise" at the end of 2021. It believes its Omniverse Enterprise is the mother of all virtual worlds. This is the first-ever platform for 3D simulation and head-to-head remote collaboration. Today hundreds of enthusiastic companies are using this platform to get into the Metaverse.
However, Omniverse is not just a single attraction for the investors in its metaverse stock. If, unfortunately, Omniverse fails to pick up steam, Nvidia will still profit from the metaverse space.
- Unmatched and High-end GPUs
Its unmatched and high-end GPUs have always been its commercial business for years and will grow in demand with the uplift in metaverse trend, and Nvidia will surely get massive revenue from its hardware sales.
VR and AR in the metaverse space will need mobile edge computing. vGaming is the Nvidia’s Grid that facilitates up to 160 PC games all at once. This simultaneous playing will demand high power, and Nvidia’s RTX server can easily cater to this enormous power demand. Its cloud gaming will also lead to high subscription revenues.
With all these appealing Metaverse supporting applications and hardware, it would not be surprising to consider Nvidia the “Backbone of the Metaverse.”
3. Microsoft Corp. (NASDAQ: MSFT)
Microsoft – a tech beast since the invention of the internet is another giant player having substantial involvement in Metaverse. It can help create Metaverse in multiple ways, making Microsoft one of the appealing Metaverse stocks. In 2021, its annual revenue was $168 billion, 18% up YoY (year-over-year). It is predicted to be even higher for the fiscal year 2022.
What makes Microsoft Stock a Convincing Investment Opportunity?
- HoloLens – Microsoft’s HoloLens headset sold out in thousands of dollars have great scope in the 3D space. These mixed reality smart glasses are designed to support MR applications in virtual interaction, 3D printing, and real estate.
- Industrial Metaverse – Microsoft has recently partnered with Kawasaki and announced that Kawasaki would employ the "industrial metaverse" to produce robots. The workers at the factory would use the HoloLens headset by Microsoft to join the digital world.
- Console Space/Gaming apps Leader - Microsoft is leading in console space. It will expand and incorporate its VR technology into its gaming sector. It is further getting acquisition of ATVI (Activision Blizzard Inc.) which will broaden its Virtual Reality gaming footprint. Microsoft plans to introduce metaverse apps for gaming such as Minecraft and Microsoft Flight Simulator into a virtual 3D world.
- Mesh for Teams – Microsoft has plans to get into the Metaverse by launching "Mesh for Teams" in the current year. This new solution – is considered the "gateway to the metaverse ."With this platform, the users would attend a meeting in the virtual world in their personalized avatars. Mesh for Teams will enable its users to access the Metaverse from any device.
So, if you want to monetize on the Metaverse, Microsoft is likely a compelling way to play it.
4. Unity Software Inc. (NYSE: U) – the best gaming Metaverse Stock
Unity is a 2D and 3D cross-platform engine that allows the players to interact with each other while playing the game. The market share of Unity in the mobile gaming industry is 70%. Unity has the potential to leverage its gaming positioning into the success of Metaverse. Unity baffled investors with its remarkable growth. In 2021, its revenue reached $1.1 billion at 44% growth. It claims a persistent annual revenue growth of above 30% over an extended period. In the initial quarter of 2022, its revenue increased by 36% YoY to $320 million.
Why is Unity a Great Investment Opportunity in the Metaverse?
- Unity Software – Unity is the indisputable leader in real-time 3D software development, which estimates that almost 50% of all global 3D content has been developed with its software. Unity also offers its software to the developers that help them create high-end graphical content for phones, consoles, and VR. This competitive edge ensures that Unity will continue grabbing most of the market share in the future. It also manifests the vast potential of this enterprise in the metaverse space.
- AR and VR tools provider – Unity also offers VR and AR tools and nom-gaming apps. VR is a must having technology in the metaverse space. So, being a leading platform for AR and VR devices leveraging 3D content, it can get tremendous benefits from metaverse development.
- Acquisition of Weta Digital’s VFX division – Unity acquired Weta Digital's VFX division in November 2021 for $1.625 billion. This acquisition has enhanced its chances of getting a significant market share. With this deal, Unity will get VFX tools and many competent engineers. Unity has also planned to develop VFX tools in the current year. VFX tools Investors must expect breathtaking games with impressive graphics by Unity, created with high-end devices that will grab a considerable market share. Besides the gaming industry, VFX tools developed for the cloud, will facilitate content creation in the 3D world.
With its incredible software for 3D content creation in augmented and virtual reality, Unity is all set to dominate the Metaverse.
5. Apple Inc. (NASDAQ: AAPL)
It’s quite obvious that people will use dynamic electronic devices to access the Metaverse. If smartphones turn out to be the best way to get into the Metaverse, it will be another boom for “Apple.” Although Apple has not yet directly and officially entered the metaverse space, the users get access to Roblox, Unity, and several other games via the Apple app store. Hundreds of people access the digital world using Apple's Hardware daily. Hence, Apple is facilitating getting into the Metaverse. Its total revenue in 2021 was $137.7 billion, which hit $365.8 billion in 2021. In the first quarter of 2022, Apple generated $97.2 billion.
How does APPLE Help Power the Metaverse?
Apple’s lately released M1 Ultra chip is a rapid move towards Metaverse. This chip by Mac Studio is competitive with RTX 3090 graphics cards by Nvidia. Apple's immediate improvements in Chip performance can make it a winner in the Metaverse by introducing Apple computers with fantastic 3D graphics.
As Metaverse is believed to be a virtual or augmented reality, Apple has a high chance to flourish in that market. Apple's ARKit used in Apple iPads and smartphones will likely have great demand in the Metaverse. This ARKit will enable the developers to introduce augmented reality experience into their apps and games.
TrueDepth cameras and LiDAR in iPhone and iPad will become necessary hardware to be used in VR and AR devices.
Investors believe the sale of Apple's iPhone, headsets, and Apple Watch will exceed expectations. They predict that Apple will buy shares of smart eyewear to complement its already flourishing market of Beats Headphones and Apple Watch.
Apple has been in the rumors to work on AR and VR glasses and headsets. Apple may purchase a platform for gaming software or invest in the manufacturing firms of VR hardware. If that's its next direction, Apple will be all prevailing in the Metaverse.
With all these developments, Apple is highly positioned to pick up a large chunk of the market share in the Metaverse, and the valuation of this stock is getting immense attraction. As Apple Metaverse stock has an obvious metaverse connection, so there is a high chance the investors will also gain profit.
Cheap Metaverse Stocks
1. Advanced Micro Devices, Inc. (NASDAQ: AMD)
The Metaverse will be built on the advanced processors. Therefore, the chip makers such as Nvidia and Advanced Micro Devices (AMD) are ideally positioned to deal with this demand. AMD – a multinational semiconductor company, is another key player in the Metaverse. With 1275% growth over the last five years, AMD is leading in developing the processors to create Metaverse. The last quarter of 2021 witnessed an all-time high growth in AMD stock. For 2022, AMD's revenue projection is $26.3 billion, with a 60% surge over the last year.
Let’s explore the prospect of this high-ranking metaverse stock!
- Meta-AMD collaboration to adopt Metaverse-ready RAN
AMD recently declared its alliance with Meta platforms to create and adopt RAN (Radio Access Network) – a radio element of a wireless telecommunication system that connects individual devices like mobiles or laptops with the core network via radio connections. This entire infrastructure is quite expensive. The Meta-AMD collaboration will mark down the base station cost to ensure the availability of this broadband worldwide. Hence, AMD, with the partnership of Meta, is thriving to turn the Metaverse from a mere concept to reality.
2. Roblox Corp. (NYSE: RBLX)
Roblox is an online social gaming platform where users can develop and interact in 3D. Its daily active users showed tremendous growth this first half of 2022 and hit 43 million active users daily. Its engaging hours were reported as 3.6 billion with 10% YoY growth. It generated $1.9 billion revenue over the last year. In the first quarter of 2022, it has generated $537 million and is predicted to grow more in upcoming quarters.
- Roblox's goal is to appear as an advertising giant in the Metaverse.
Roblox aims to dominate the Metaverse as an advertising giant. It is on its way to achieving this goal as some largest brands are approaching it. For instance:
- NIKE LAND – a virtual world experience on Roblox created by the sports apparel beast "Nike." In this digital experience, the users will enter a virtual showroom via Roblox and get an avatar in Nike products to explore the company's new products.
- Vans World –launched by Roblox, is a metaverse playground for an interactive skateboarding experience. In this world, players customize their Vans apparel and shoes and do tricks while enjoying themselves with their friends.
- Music and the Metaverse – Roblox is a fascinating platform for great music talents like KI and Li Nas X performing in virtual concerts on the forum.
- NFL Tycoon – launched by NFL, is another leap towards Metaverse.
- Roblox Spatial Voice will enable its users to interact digitally in the most realistic manner.
As several enterprises are jumping on Roblox to publicize their products, its metaverse stock is possibly the supreme investment. Therefore, Roblox is one of the most appealing and cheapest metaverse stocks with the great prospect of emerging as an advertising titan soon.
The shift to Metaverse is a combined effort of many giant players discussed in the blog. These players are striving to architect the framework of the mirror world and present an excellent opportunity for investors who want to capitalize on Metaverse However, selecting the top metaverse stock is a crucial task for the investors. It would be wise enough to invest in the stocks of metaverse companies who are already flourishing and have considerable chances to thrive more by the Metaverse.