Best Metaverse Stocks to Buy in 2022
- Posted on April 12, 2022
- Featured
- By Faith Tiza
Best Metaverse Stocks to watch out for.
The metaverse is a digital, three-dimensional universe
that is immersive and available in real-time to an infinite number of
individuals, allowing for social interactions, commerce, and other activities.
This is currently more science fiction than reality. Various IT businesses, on
the other hand, are attempting to realize the entirety of this vision.
Although the metaverse does not yet exist in its
entirety, metaverse-like elements can be found on various platforms. At the
moment, video games give the closest metaverse experience available. By holding
in-game events and building virtual economies, developers have pushed the
boundaries of what a game can be.
Cryptocurrencies, while not needed, can be a perfect
fit for a metaverse. They enable the creation of a digital economy based on
various utility tokens and virtual valuables (NFTs). The use of crypto wallets
like Trust Wallet and MetaMask would also assist the metaverse. Furthermore,
blockchain technology can be used to create transparent and trustworthy
governance structures.
Existing blockchain-based, metaverse-like applications
provide people with livable earnings. Many users utilize Axie Infinity as a
play-to-earn game to supplement their income. Other successful instances of
combining the blockchain world with virtual reality apps include SecondLive and
Decentraland.
Big tech behemoths are attempting to pave the route
for the future. The decentralized nature of the blockchain sector, on the other
hand, allows smaller players to participate in the metaverse's development.
These
3 Tech Giants Have Made Significant Investments in the Metaverse
Metaverse projects are thriving, and some businesses
are wagering big that they will be the Next Big Thing. Knowing these companies
who have invested in Metaverse is a great way to anticipate the boom
Metaverse is set to experience in the near future.
1. Microsoft:
It's no surprise that Microsoft, as a long-time player in the tech industry, is
expanding its reach into the metaverse. As a prelude to obtaining a strong
position in the metaverse, the business announced in January 2022 that it would
be acquiring Activision Blizzard, the massive video game developer, and
publisher. The $70 billion transactions is Microsoft's largest ever, and it will
allow the company to produce Microsoft-backed metaverse games and services in
the future years.
2. Meta
(formerly Facebook): Facebook announced in November 2021
that it was changing its name to Meta, which was a perfect fit. This was done
in an attempt to bring in a new metaverse, and it certainly got people talking.
Aside from the cringe-inducing inaugural film, Meta has spent a total of $10
billion on acquiring and developing technology and software that will be
utilized to deliver virtual reality capabilities within the metaverse. The
company also intends to invest in augmented reality (AR), another promising
developing technology.
3. Google:
You may have already used Google to learn more about the metaverse. Following
the lead of a number of its competitors, Google chose to invest in the
metaverse in January 2022. Despite the fact that Google's unsuccessful AR
glasses caused a lot of public embarrassment in 2014, it doesn't seem to have
deterred them from investing in AR.
What
are the best ways to invest in the metaverse?
Investors might tackle this secular tendency in a
variety of ways. Consider the following list of possible metaverse layers,
which is by no means exhaustive:
-
Immersive Hardware: Virtual reality (VR)
headsets are currently the only immersive hardware available in the metaverse.
Popular consumer items now only include the sensations of sight and hearing,
but metaverse hardware products could include more senses including touch
through haptic devices.
-
3D creation software: The metaverse
requires software solutions to develop virtual world scenery and create things
that can be bought and sold.
-
Interactive platforms: Virtual worlds —
interactive platforms – will be required to access the metaverse in the same
manner that people visit websites via the internet.
-
Connectivity: To accommodate an endless
number of metaverse players in real-time, the connection will need to be
lightning-fast, and the computers will need to be powerful enough to render 3D
fluently.
-
Semiconductors: In a similar vein, the
metaverse's computer power requirements will be immense, necessitating
breakthroughs in semiconductor technology. The metaverse will also generate a
large amount of data that must be stored.
-
Security: As people engage in more metaverse
activities, their identities and finances will need to be safeguarded, making
cybersecurity increasingly important.
With so many options, any investor's style and risk
tolerance are likely to find a metaverse stock that suits them.
What
are the best metaverse stocks to invest in?
It could take many years for the metaverse to reach
its full potential. As a result, the best metaverse stocks to buy right now are
companies that are currently doing well but will have their growth accelerated
by the metaverse. Here are a few key points to examine, in no particular order:
1. Meta: Meta
Platforms (NASDAQ: FB), formerly known as Facebook, is credited with bringing
the metaverse trend to the attention of investors. Ads in the Facebook and
Instagram apps account for the majority of the company's revenue. The Oculus VR
headsets from Facebook, on the other hand, have sold more units than any other
on the market, making Meta a top stock for immersive metaverse products. The
corporation is pouring billions of dollars into developing software and content
for augmented reality and virtual reality apps, allowing it to tackle different
metaverse angles. The current stock price is 216.46 USD.
2. Unity:
Unity Software (NYSE: U) is the undisputed market leader in 3D software.
According to the business, its software is used to create around 50% of all 3D
content today. It's realistic to predict that a significant part of metaverse
material will incorporate Unity in some form. Due to its unique value
proposition, it's also realistic to think the company can continue to steal
market share from competitors. Unity Personal and Unity Student, two of its
products, are available for free to content creators who are just getting
started. It's likely that as these creators prosper, they'll become paying
Unity customers. The current stock price is 90.53 USD.
3. Nvidia: Nvidia
is another company that could profit from the creation of 3D content
(NASDAQ: NVDA). Although the company's Omniverse Enterprise product has only
been on the market for a short time, it has already attracted the attention of
hundreds of businesses and has been downloaded by tens of thousands of content
creators. Even if Omniverse fails to acquire traction, Nvidia is expected to
reap the benefits of the metaverse movement. The company's high-quality
graphics processing units (GPUs) have long been its bread and butter, and as
the metaverse trend gains traction, GPUs will be in high demand, allowing users
to enjoy a crisp and clear 3D content experience. The current stock price is 219.17
USD.
4. Cloudflare: Cloudflare
(NYSE: NET) is a content delivery network (CDN) that prioritizes speed. The
business claims that its network can provide content to 95 percent of the
world's population in 50 milliseconds or less. As the metaverse grows, that
scale will be useful. However, as previously stated, the metaverse will have
other requirements, which Cloudflare may help with. For instance, the firm
already provides cybersecurity services, preventing 76 billion daily threats.
It just released a data-storage device that could help address the metaverse's
massive data-storage requirements. The current stock price is 109.64 USD.
5. Roblox: Finally,
Roblox (NYSE: RBLX) is already a popular virtual environment that could develop
into a metaverse platform in the future. Virtual concerts have previously been
hosted by musicians such as Tai Verdes and Lil Nas X on Roblox's platform,
indicating that virtual events are gaining broad appeal. The website used to
appeal largely to U.S. users under the age of 13, but it has now grown into a
global company with an ever-growing number of older users. Roblox, which now
boasts around 50 million daily active users, has a large head start in the
metaverse with several interactive platform destinations. The current share price
is 44.02 USD.
Where
are the best places to buy metaverse stocks?
A brokerage account is required to purchase stocks and
ETFs. The finest brokerages are incredibly user-friendly, allowing for account
opening with no minimum deposit and zero-fee trading. A few of them include
Merrill, SoFi, Robinhood, E*trade, Webull, and Fidelity Investments amongst so
many others.
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