Metaverse has arguably been one of the biggest buzzwords since the much talked about rebranding on Facebook. Little did we know that an Oasis-like virtual world from the 2018 hit Loan player one would become a reality within a few years. It’s gone from fiction to reality, and the world’s major metaverse actions are all looking to get in on the action.
The Metaverse is an integrated virtual environment where people can connect, work, and play online. It will work like the Internet at its core, but will likely be very immersive and integrated. On top of that, it will have an economy in itself.
However, a lot of patience is needed here. The metaverse concept will take time to blossom into the juggernaut it’s meant to come. The market is expected to reach $800 billion within a few years.
Therefore, investors should tap into the trend early and load these metaverse stocks now:
- Metaplatforms (NASDAQ:Facebook)
- Nvidia (NASDAQ:NVDA)
- Roblox (NYSE: RBLX)
- Autodesk (NASDAQ:ADSK)
- Cloudy (NYSE:REPORT)
- Matterport (NASDAQ:MTTR)
- Unit software (NYSE:you)
Metaverse actions: meta platforms (FB)
Meta-platforms, formerly known as Facebook, have shaken up the internet with its strategic shift towards the next technological breakthrough: the metaverse.
The seismic change came as the company faced a public relations crisis. However, with user growth slowing, perhaps the pivot of the metaverse was the need of the hour.
What the Metaverse has in store for the company is relatively unknown. However, we know that Meta Platforms will do everything to become a potential mainstay in the emerging sector. It has already spent over $60 billion expanding its metaverse plans from 2014 to 2023.
As we move forward, the company’s augmented reality (AR) and virtual reality (VR) businesses are set to explode and lay the foundation for future growth. With a proven track record in innovation, it will not be surprising that it can establish its position in the sector.
Nvidia is an obvious metaverse game given its leadership position in the graphics processing unit (GPU) space. The usefulness of its GPUs has grown significantly in industries such as artificial intelligence (AI), data centers, and other verticals outside of gaming.
The GPU giant plans to leverage the power of its robust hardware stack to expand its software capabilities. He has developed a graphics engine called Omniverse, which will allow users to design their metaverses.
In the future, every company will have its metaverse, which is why Omniverse will have immense value. If it can become the go-to engine for designing virtual worlds, it could hold a colossal opportunity in the future.
Additionally, the company’s GPUs are arguably the most powerful in its industry. Its state-of-the-art graphics chip is likely to be the go-to choice for users meeting the demands of the Metaverse.
Metaverse Actions: Roblox (RBLX)
Roblox is one of the most popular gaming platforms in the world. Its robust ecosystem allows users to create and share experiences on its creative platform.
The platform is hugely popular with young people, as most of its users are aged 13 and under. According to its latest quarter, its daily active users exceeded 47 million.
Roblox’s 3D platform already has metaverse features and could potentially become a major driver of revenue growth. Moreover, he plans to become an advertising titan based on his strong creative platform.
It is already gaining ground with major brands. Additionally, Roblox plans to invest a substantial amount of money into its platform to continue improving the quality of its services. If he can keep doing that, his platform will grow by leaps and bounds, making him a successful advertising business.
Autodesk is a leading provider of software tools for the engineering and construction markets. Architects and engineers use its building information modeling (BIM) program, Revit, to visualize their designs and then show them to their clients.
Additionally, these designs can then be taken to the next level via plugins such as Autodesk Rendering. Moreover, it offers a multitude of products mainly designed to develop 3D VR and AR animations. Therefore, it’s obvious that he can become a perfect fit for the Metaverse.
During the third quarter, the company’s revenue jumped 13% to $952 million, with subscription revenue making up the bulk of the total. Additionally, GAAP margins remained excellent at around 18%. The company’s finances are excellent and it has many internal resources.
Metaverse Actions: Cloudflare (NET)
Cloudflare isn’t exactly a pure-play metaverse. However, it is likely to play a major role in providing the robust network and data services needed to make the Metaverse a reality.
Cloudflare provides an edge-based Content Delivery Network (CDN) that facilitates efficiency, reliability, speed, and data security. Such network characteristics will prove essential in driving business growth in the metaverse.
Perhaps every aspect of the metaverse, from avatars to virtual activities, is susceptible to being defined by software. Content inside the metaverse needs to be delivered quickly and reliably to keep users engaged.
Luckily, this is what Cloudflare does well, as its CDN powers a significant portion of the web. Moreover, its solid financial performance testifies to the quality of its product and the efficiency of its internal management.
Matterport is a video capture company that enables construction companies to offer virtual tours of buildings that potential buyers and tenants can use. This saves time for clients who would otherwise be looking for a home and pouring their energy into the process. Following Covid-19 restrictions, the business model turned out to be a novel idea.
Along with video capture services, the company also stores the virtual spaces it scans and offers a suite of design tools. Total subscribers grew 116% year-over-year in its most recent quarter, and subscription revenue grew 36%.
The sustainability of its business model is questionable, which is why it represents the riskiest bet in the sector. However, it could blossom into a top metaverse company down the line.
Metaverse Actions: Unity Software (U)
Unity Software is the best designer of 3D worlds. According to the company, more than 50% of all games have been developed using Unity’s engine. Therefore, the goal is to build on its success by playing a massive role in the metaverse industry.
CEO John Riccitiello plans to have over 60% of metaverse content built on the Unity engine. He thinks his technology will be used for monetization, analytics, and other related stuff inside the metaverse.
It recently acquired visual effects producer Weta Digital for $1.6 billion. Weta’s technology has been used in blockbuster movies such as Avatar and TV shows like game of thrones.
Unity will make Weta’s tools available to produce high quality 3D content. As Unity meets the unique requirements of metaverse content development, it’s poised to become a formidable player in the space.
As of the date of publication, Muslim Farooque had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.
Muslim Farooque is a passionate investor and an optimist at heart. A long-time gamer and tech enthusiast, he has a particular affinity for analyzing tech stocks. Muslim holds a Bachelor of Science in Applied Accounting from Oxford Brookes University.