How to Invest in the Top 5 Companies in Virtual Worlds

Metaverse Stocks: The Metaverse is fast becoming the most anticipated technological development of our generation. The emerging technology is still many years away from broad mainstream success. But investors are already looking for ways to invest in this brave new connected digital landscape, says Rebecca Barnatt-Smith.

The sheer amount of computing power required to run the Metaverse and its reliance on virtual and augmented reality has paved the way for many existing stocks to stand as the primary beneficiaries in a Web3 environment. But where can you invest wisely on Wall Street?

Top 5 draft

Let’s take a closer look at five of the most exciting Metaverse stocks to invest in today and how each company could grow:

Metaverse Stock #1: Nvidia (NASDAQ:NVDA)

First, let’s examine a company that could play a significant role in furthering the metaverse. Nvidia graphics cards and data center chips are best positioned to bring the metaverse to life by providing the computing power individuals need to interact with one another in an expansive digital environment.

Crucially for investors, we’re already seeing Nvidia graphics cards powering Meta Platforms’ AI Research SuperCluster (RSC) supercomputer. The company hopes to create a framework for handling the processing needs of the metaverse.

The stock itself has slipped after a blistering 2021. But NVDA’s strong rebound from its bottom in Q2 2022 shows that investor confidence in the stock remains strong.

The company has a close relationship with Meta, a company looking to build into the Metaverse. Nvidia’s strong hand stems from the scope of the task at hand to push the new Web3 landscape in a way that suits all users. Intel estimates that the successful rttttt of the metaverse would require a 1,000-fold increase in computing power commonly available today.

It’s this requirement for the introduction of more processing hardware that will likely provide Nvidia with a golden opportunity for strong growth as development of the metaverse gathers momentum.

Metaverse Stocks: How to Invest in the Top 5 Companies Deep in Virtual Worlds

Metaverse Stock #2: Unity Software (NYSE:U)

Much like Nvidia, Unity Software will be another major player when it comes to pushing the metaverse forward. The company specializes in enabling game developers to create high-quality graphical content that can work across platforms. This can bring users together based on computers, smartphones, gaming consoles and VR hardware.

Significantly, by the end of 2021, Unity had a 61% market share of the gaming market. That doesn’t come as a surprise to the company’s stock performance for much of the year. Unity has been hurt by the 2022 tech stock sell-offs. But the stock’s proximity to the gaming sector will likely make it a frontrunner in Web3’s development.

The company’s software is believed to have been used in the development of more than 60% of the world’s 3D content to date. This can be significant not only for game designers, but also for Metaverse development studios like BORN, who can use the technology to render huge 3D creations in the Metaverse for their clients.

Today, Unity is working on a number of platforms like Insomniac Events to generate new Metaverse worlds. With key industry figures like Microsoft CEO Satya Nadella claiming that “the Metaverse is essentially developing games,” it’s likely that Unity will play a central role in the evolution of the landscape.

Metaverse Stocks: How to Invest in the Top 5 Companies Deep in Virtual Worlds

Metaverse Stock #3: Roblox (NYSE:RBLX)

Roblox has built a reputation as an early iteration of the metaverse. As a gaming company, social network, and content creation platform, the stock contains many of the foundations of the metaverse as we know it today. Additionally, Roblox’s $41.9 billion market cap at the time of its 2021 listing on the NYSE shows that the company is already a metaverse star in the eyes of Wall Street.

Significantly, Roblox has grown into a premier entertainment hub, with 3D concerts for leading artists like Lil Nas X and David Guetta among many others. At the time of writing, Roblox has hosted more than 24 million 3D experiences for users to engage in.

We’re also seeing strong signs of growth for Roblox. In Q4 2021, Roblox averaged 49 million daily active users, up 33% from the same time last year. Should the platform build on its growth, it could become the world’s favorite metaverse in the future.

Metaverse Stocks: How to Invest in the Top 5 Companies Deep in Virtual Worlds

Metaverse Stock #4: Snap (NYSE:SNAP)

The artist formerly known as Snapchat can be credited as a social media giant in its own right. But the company has been making waves in the augmented reality space in recent years.

In fact, SNAP’s AR investments are fueling healthy growth within the platform. They could form a complicated connection with the metaverse as technology continues to draw on the development of augmented reality.

Although 2022 was a difficult time for Snap’s stock market fortunes, 250 million of its users used the platform’s AR tools in the first quarter of 2022. Snap’s famous Lenses tool will soon be accompanied by full-fledged AR glasses, which could become a precursor to Metaverse compatibility glasses.

Metaverse Stocks: How to Invest in the Top 5 Companies Deep in Virtual Worlds

Metaverse Stock #5: Microsoft (NASDAQ:MSFT)

MSFT stock performs exceptionally well compared to some of its peers on this list, despite widespread tech sell-offs. While that may mean there are fewer opportunities to buy discounted stock, this blue-chip company has proven time and time again that it can keep up with new innovations.

In early 2022, Microsoft announced the acquisition of Activision Blizzard, a leading gaming company. The $70 billion deal provides access to Activision’s gaming titles, such as the hugely popular Call of Duty. In addition, Microsoft will be able to monetize Activision’s seismic monthly 390 million users.

The company makes no secret of the fact that it sees gaming as an integral part of the development of the metaverse. In this acquisition, we can see a clear game by Microsoft to emerge as the market leader in Metaverse-based games.

Microsoft is also actively working to leverage its HoloLens as a means of creating mixed reality spaces for teams. Microsoft has a rich history of innovation, and judging by its recent market moves, it seems certain that the company will be at the forefront and at the heart of Metaverse developments.

Tips for Investors

It’s important for investors to continually research the Metaverse companies they want to add to their portfolio. The space is still under construction and things can change quickly.

With that in mind, no Metaverse stock is safe for long-term growth. However, with the right level of Metaverse exposure, investors are likely to benefit significantly from the space’s winners over time.

About the author

Rebecca Barnatt Smith is a freelance journalist and multimedia marketing executive interested in the future of the metaverse and what it could mean for investors. She covers technology-based topics, the future of crypto trading and NFT trends.

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