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Buy These 3 Metaverse Stocks Before They Explode

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The metaverse is a shared virtual 3D world or worlds that are interactive and collaborative. It covers a range of technologies in the field of collaborative spatial computing. Technologies include interactive 3D graphics, augmented reality (“AR”), virtual reality (“VR”), online economy, multi-user gaming and much more.

Once seen as science fiction, the metaverse is now seen as the future of gaming, entertainment, brands, e-commerce and business. Any device capable of rendering an immersive three-dimensional experience (including a PC or even an iPhone) is considered metaverse capable.

With more and more companies from various industries joining the Meta bandwagon, it’s clear that the metaverse will dictate the next generation of the Internet sooner rather than later, as it offers a significant investment opportunity for years to come.

Abundant growth prospects for metaverse players

The global metaverse market size is expected to grow from USD 61.8 billion in 2022 to USD 426.9 billion in 2027, at a compound annual growth rate (“CAGR”) of 47.2% during the period forecasting, according to a report by MarketandMarkets.

The primary market for online game and game hardware makers could reach $400 billion by 2024, while the rest of the business will come from live entertainment and social media. Gaming, AR and VR create a $413 billion primary market for the metaverse, according to a Bloomberg Intelligence report.

Hosted by the Khronos Group, the Metaverse Standards Forum was created with the aim of establishing interoperability standards for the envisioned metaverse. Participants in the Metaverse Standards Forum include many of the biggest companies working in the field, from chipmakers to game companies, as well as established standards-setting bodies such as the World Wide Web Consortium (W3C).

As major global indices continue to slide as the Fed turns hawkish to tame stubbornly high inflation, astute investors should therefore keep an eye on companies like Metaplatforms GOAL, Microsoft MSFT and roblox RBLX, which are preparing to capitalize on the metaverse boom. These companies currently carry a Zacks Rank #3 (Hold). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Year-to-date performance

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Meta aims to produce economic opportunities in the metaverse

The metaverse ambitions of Facebook’s parent Meta Platform are well known. Facebook’s parent company is set to launch a new policy at the Metaverse Standards Forum to develop the metaverse as an independent commercial platform aimed at creating new economic opportunities. These policies will help recognize the need for decentralized systems and build collaboration between the public and private sectors.

According to META, the metaverse will be worth $3 trillion by 2031. Major cities such as Dubai, Seoul and Taiwan are planning to take advantage of the metaverse’s recent boom in popularity. The Metaverse is also providing new opportunities for creators to develop new forms of art and entertainment, build more interactive relationships with their audiences, and create new economic opportunities for themselves.

Meta is investing heavily in AI technology, which will help build the metaverse as a commercial virtual reality independent of the real world. Meta recently launched its first high-end virtual reality headset, the Meta Quest Pro, at the Meta Connect event.

Meta collaborated with nvidia NVDA to build an AI research supercomputer, helping META AI researchers build different AI models crucial to creating the metaverse. NVIDIA intends to transform its leadership position in providing computing hardware for the metaverse into a set of software tools for creating and selling content in virtual worlds.

Zacks’ consensus estimate for current year earnings has held steady at $8.96 per share for the past 30 days.

Microsoft paves the way to the metaverse through teams and games

Microsoft intends to become the software provider for work on the metaverse. To build the metaverse, Meta Platforms has partnered with PyTorch foundation co-founder Microsoft to bring new work and productivity tools to Meta Quest Pro and Meta Quest 2 next year. This includes apps like Microsoft Windows 365 and Microsoft Teams and the ability to join a Teams meeting from within Meta Horizons Workrooms.

Enterprise Mesh for Microsoft Teams can be considered a gateway to the metaverse and used on a standard laptop or smartphone. The first step most Mesh for Teams users will take is to join a standard Teams meeting as a custom avatar of themselves rather than a still or video image. Organizations can also create immersive spaces – metaverses – within Teams.

Microsoft is set to acquire Activision Blizzard in an all-cash deal for $68.7 billion to competitively enter the gaming world in the metaverse. Microsoft’s strategic plan to buy Activision helped it become the third largest gaming company in the world and provided it with the expertise it needed to claim its share of the multi-million dollar market of the metaverse.

Additionally, Microsoft’s Xbox gaming system can be used to provide users with access to the metaverse.

Zacks’ consensus estimate for current year earnings has held steady at $9.54 per share for the past 30 days.

Roblox Metaverse Creates a Brand Amid Growing Competition

In a virtual world, independent of AR and VR technologies, Roblox Metaverse is one of the first to enter the Metaverse. It has all the basic features that audiences have come to expect from the Metaverse, ranging from surreal virtual world experiences to a cryptocurrency-based economy.

Roblox’s metaverse is accessible on smartphones and other mobile devices without the need for VR headsets. So it’s definitely easier to access and fun to play. The highest-grossing games, which witnessed millions of visits, include Blox Fruits, Shindo Life, Pet Simulator X, Sonic Speed ​​​​Simulator, King Legacy, Gacha Online and Livetopia🇧🇷

Roblox Studio is the company’s proprietary engine, which allows its creators to build virtual worlds and games. These creators may also publish their purchasable items in-game. All users can purchase in-game items, but only certain Roblox Metaverse members can sell them through their premium membership.

Events such as concerts and ceremonies are the backbone of the Metaverse’s economy. The Roblox Metaverse aims to host events that are suitable for its user base, which consists of children under the age of 16 mostly. These events can have different objectives, such as brand endorsement and fundraising.

Celebrities and rappers like Lil Nas X and David Guetta have performed for the Roblox Metaverse.

To top it off, RBLX already has its own digital currency, Robux, which has more than 50 million daily active users.

Zacks’ consensus estimate for Roblox’s current year earnings has held steady at a loss of $1.58 per share over the last 30 days.

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Microsoft Corporation (MSFT): Free Inventory Analysis Report

NVIDIA Corporation (NVDA): Free Inventory Analysis Report

Roblox Corporation (RBLX): Free Inventory Analysis Report

MetaPlatforms, Inc. (GOAL): Free stock analysis report

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