5 Top Metaverse Stocks to Watch
As the metaverse becomes reality, you may be looking to add some “metaverse stocks” to your portfolio.
Here five names to watch in the sector:
Unity Software (U)
Unity Software (U) is a video game software development company.
Game designers, artists, architects, and engineers have used Unity to build interactive 3D content on more than 20 platforms.
The company also has software for Augmented Reality and Virtual Reality developers.
Unity has never turned a profit, but CFO Luis Visoso is optimistic about the future.
In its Q4 2021 earnings, Visoso said, “The business momentum coupled with the quality of our innovation plans gives us confidence to guide to a revenue growth range of 34% to 36% in 2022 as we continue to improve margins.”
An analysis by Motley Fool shows if Unity maintains its revenue growth trajectory of 30%, revenue would surge 271% by 2026 to over $4 billion.
Autodesk (ADSK)
As more people buy land in the metaverse, they need software to develop that land.
That’s where Autodesk (ADSK) comes in.
The company describes itself as “a leader in 3D design, engineering and entertainment software.”
Autodesk’s programs are already used by architects and engineers to design virtual reality plans for real buildings.
But metaverse architects could use the software to construct digital buildings.
Nvidia (NVDA)
You can’t access the metaverse without a computer, phone, or tablet.
And those devices don’t work without computer chips.
Nvidia (NVDA) is one of the biggest chipmakers in the world, with a special focus on gaming and graphics processors.
In August 2021, Nvidia launched its own open platform for metaverse design – the Nvidia Omniverse.
The Omniverse allows metaverse creators, designers, researchers, and engineers to work together virtually, from anywhere.
Meta Platforms has agreed to use Nvidia chips for artificial intelligence research.
Roblox (RBLX)
Roblox (RBLX) is already a metaverse of its own.
The online gaming site was founded in 2004 and had 49.5 million daily active users as of Q4 2021.
Roblox consists of more than 20 million “experiences” or “worlds” made by online creators for other users to play.
The company launched its own digital currency, known as Robux, in May 2007.
The coins are used for all transactions between users on the site and to purchase new clothes, accessories, and gear for their avatar.
Users purchase Robux like any other digital currency, with cash.
Meta Platforms (FB)
A list of metaverse stocks wouldn’t be complete without Meta Platforms (FB).
The company officially changed its name on October 28, 2021 from Facebook, Inc. to Meta Platforms, Inc.
The move was part of CEO Mark Zuckerberg’s belief in the future of a digital world.
Since then, Meta has spent big on the shift.
In 2021, Meta spent $12.5 billion on the metaverse division, Reality Labs.
That’s up from $7.8 billion in 2020.
In its Q4 earnings, Meta said it plans to increase that investment in 2022.
The stock crumbled after that earnings report, as Meta forecast lower user growth for Facebook.
Meta Platforms shares plunged 26% on February 3, 2022.
Not only was that the largest one-day drop in company history, it was the largest valuation wipeout in market history.
Meta lost over $251 billion in market value that day.
The company also owns Oculus VR, which is the leading virtual reality headset around the world.
Are You Trading the Metaverse?
So what metaverse stocks do you already own? Which are you planning to buy next?
Let us know in the comments!
