The Metaverse is Mark Zuckerberg’s virtual reality world. A few companies hold a stake in the Metaverse, and we’ll explain which those companies are. Since this new world is built using the software and hardware of these companies, it would be wise to invest in Metaverse stocks.
From tech giants to video game companies, let’s take a look at what the Metaverse actually is?
What Is the Metaverse?
The concept of a Metaverse has been around for quite some time. The first time someone mentioned the term was in 1992. More specifically, it was an author by the name of Neal Stephenson. In his 1992 science-fiction novel, Snow Crash, Neal envisioned a world where people would meet in 3D simulated environments. This is essentially what the Metaverse wants to do.
But what exactly is Mark Zuckerberg’s latest pet project? The Metaverse combines multiple technology elements such as virtual and augmented reality, gaming, video, and more. It is a means to keep people connected in a world where they can live, talk, walk, play games together, and more. While the concept does face its fair share of criticism, Mr. Zuckerberg believes it will be the new way to interact with people.
In the Metaverse, people can travel or go to conferences without being physically there. One company that attempted a similar event was Fortnite. In two years, Fortnite held a Marshmello and Travis Scott live concerts. Epic Games, the company that makes Fortnite, has ambitious plans to host dozens of these concerns for its player base.
Pulling off such a task in a virtual reality world is far more difficult and ambitious. But this is essentially what the Metaverse plans on doing. While implementing the key features of the Metaverse is decades away, we’re seeing some of the aspects right now. By joining forces, Metaverse companies will have a much easier time creating this new virtual world.
Much like investing in other companies, here are the Metaverse stocks you should be buying.
Who Is Building the Metaverse? Metaverse Stocks To Buy
The Metaverse concept is simple. The goal is to build a virtual world where people can interact with others. By using the technology of the Metaverse companies, people will have something different – a world that can be accessed through multiple devices.
So, let’s see who is potentially building the Metaverse.
In a little over a month, Facebook changed its name to Meta Platforms Inc (FB). In an announcement video by Mark Zuckerberg himself, Facebook became Meta. Despite the memes and jokes thrown at the expense of Zuckerberg, the Metaverse is an ambitious project that is decades away. Considering that Facebook is a key player in the Metaverse, we should assume it as a key stock to buy.
Facebook’s (Meta’s) stock over the past month has gone through plenty of ups and downs. However, the year-to-date performance shows a healthy 24.32% increase. Priced at $333.12, at the current time of writing, Facebook will officially trade under Meta starting December 1st.
Companies from all spheres of the tech world are joining the Metaverse future. One of the bigger alongside Facebook is Microsoft (MSFT). Microsoft remains one of the most bullish Metaverse stocks to buy. Why? Well, it’s all down to what Microsoft can offer to this new virtual world. Microsoft is the maker of the Xbox console. Not only that but Microsoft also owns Minecraft. Minecraft is a popular world-building game that many predict will be the bedrock of the Metaverse future.
While there are plenty of cogs in play, the virtual world-building potential of Minecraft and Facebook’s VR environment are two key cogs in this machine. Microsoft trades at $329.68 per stock. The year-to-date performance is admirable, with the company’s stock growing at 51.23% over that period.
Apple Inc (AAPL) isn’t currently part of the Metaverse. But Morgan Stanley’s research team says the ambitious virtual world will not take off without the company. So that begs the question, will Apple join the Metaverse? There are a few obstacles we need to discuss first before we make any assumptions. Apple is in an ongoing legal battle against Epic Games (Fortnite). Since Epic Games is already part of the Metaverse, that needs to be sorted before the company joins.
But one very important detail is that Apple has been working on an AR/VR project. If rumors are to be true, Apple will release a VR headset in the next year, with ongoing plans on developing augmented reality software to go along with it. This technology is crucial for the Metaverse future. Apple trades at $156.81. If the company does indeed join the Metaverse future, the stock might jump to new heights.
Another key Metaverse company, Nvidia (NVDA) is probably the company everyone should be buying into. Why? Well, Nvidia is a tech giant that has tons of experience with 3D simulated worlds. Thanks to its Omniverse platform, the computer chip manufacturer has the means to connect virtual worlds and build them from scratch. It is quite possibly the biggest player and biggest factor if the Metaverse will succeed or not.
Nvidia trades at $315.03 per stock. Even though it’s been a rocky week for the computer chip giant, the year-to-date performance shows a whopping 140.22% increase.
Much like Microsoft’s Minecraft, Roblox (RBLA) is a video game where people can play together in simulated environments. A core gameplay feature of Roblox is the fact that players can create their own worlds. Roblox also has its own in-game currency. Its CEO, David Baszucki, has openly said that they are exploring means by which players can trade and shop in their game.
Roblox can supply the Metaverse future with its technology and innovation. While the company currently trades at $122.65 per stock, what’s even more impressive is that it went public this March. In that time Roblox Corp stock rose by 75.67%.
Unity Software Inc (U) is one of the most important Metaverse companies to buy. The company develops a game engine, Unity game engine, and sells it to game development companies. Thus, Unity could be a key player in the Metaverse. By supplying their tools and software to the Metaverse, the virtual world will have a game engine to run on.
However, that doesn’t guarantee Unity a sit on the table. As many of you are aware, Epic Games is yet another Metaverse company with its very own game engine, the Unreal engine. Unfortunately, Epic Games doesn’t trade publically.
With that said, Unity Software Inc trades at $179.87 per stock. With an impressive year-to-date performance, it is a good Metaverse stock to buy.
That concludes our list of the best Metaverse stocks to buy. Even though we’re decades away from making the Metaverse a reality, that doesn’t stop companies from entering negotiations. As we currently have no idea who is or isn’t part of the Metaverse future, we can only speculate on potential Metaverse companies joining the ranks.
With all that said, we believe these six Metaverse companies will be key players in shaping the new virtual world.