Are These The Top Metaverse Stocks On Your December 2021 Watchlist?
Even as the overall hype for metaverse stocks and the metaverse concept slows, the tech remains viable. As such, investors may not want to overlook this booming part of the stock market today. This would especially be the case now as the Omicron Covid variant is officially in the U.S. now. Just yesterday, the Centers for Disease Prevention and Control confirmed the first official case in California. With this revelation, investors could be refocusing towards pandemic growth names. For the most part, this covers high-growth tech firms.
Accordingly, this would be when metaverse stocks come into play. After all, the tech would be highly beneficial in the case that the return to physical offices is postponed further. Through the metaverse, businesses and enterprises would, in theory, be able to host employees in a virtual space. In this space, said employees will navigate avatars and interact with one another in real-time. Among the leading tech names building the enterprise metaverse now would be Microsoft (NASDAQ: MSFT). As a major player in the global productivity software market, this comes as no surprise.
Just yesterday, the company launched Teams Essential, a standalone version of its popular workplace communication app Microsoft Teams. Through Teams Essential, Microsoft seems to be facilitating small businesses looking towards long-term digital acceleration. The service costs $4 a month to use and includes unlimited group meetings. Said meetings can last for up to 30 hours and host 300 participants. Not to mention, there are also background players such as Unity (NYSE: U) and Fastly (NYSE: FSLY) to consider. Namely, they are already supplying the necessary tech to facilitate the metaverse. On that note, here are three metaverse stocks to consider in the stock market now.
Top Metaverse Stocks To Watch This Week
Meta Platforms Inc.
First up, we have Meta Platforms, a metaverse company that is the parent organization of Facebook, Instagram, and WhatsApp. The company has recently changed its name to Meta to bring together all its applications and technologies under one new company brand. It will now primarily focus on bringing the metaverse to life and helping people connect, find communities, and grow businesses. Yesterday, the company announced that it plans to expand advertising options for crypto, making it easier for companies to run advertisements promoting cryptocurrencies on its social media platforms.
In late October, the company reported its third-quarter financials. Diving in, it reported a total revenue of $29.01 billion for the quarter, with a huge chunk of this revenue coming from its advertising segment. Net income for the quarter was $9.19 billion, increasing by 17% year-over-year or a diluted earnings per share of $3.22. Its daily active users (DAUs) were 1.93 billion on average for September 2021, increasing by 6% compared to a year earlier. The company also ended the quarter with $58.08 billion in cash and cash equivalents
For its fourth quarter, it expects its 2021 total revenue to be in a range of $31.5 billion to $34 billion. “We made good progress this quarter and our community continues to grow,” said Mark Zuckerberg, Facebook founder, and CEO. “I’m excited about our roadmap, especially around creators, commerce, and helping to build the metaverse.” Given the excitement surrounding Meta Platforms, is FB stock worth investing in?
Nvidia Corporation Inc.
Next, we have Nvidia Corporation, a tech company. Its graphics processing units are used for gaming and professional markets. Its professional line of GPUs is used in workstations for applications like architecture, engineering, and automotive, among others. The company is also in the mobile computing market, where it produces its Tegra mobile processors for smartphones and tablets as well as entertainment systems. Recently, Nvidia said that its RTX 2060 12 GB graphics card will be coming to stores to quell shortages, starting on December 7, 2021. NVDA stock is up by over 120% in the past year alone.
The company’s version of the metaverse, called the Omniverse, will be a platform for connecting 3D worlds into a shared virtual universe. The company says that its Omniverse platform is in use across a growing number of industries for projects such as design collaboration and creating “digital twins”, simulations of real-world buildings and factories.
Last month, CEO Jensen Huang said that the metaverse could save companies billions of dollars in the real world, by running simulations in the metaverse. Huang believes that businesses can lean on its omniverse to reduce wastefulness and increase operational efficiency. Through simulations, companies will be able to decrease the amount of waste and could become a trend for companies to adopt in the near future. If the metaverse is where the future is, Nvidia could be well-positioned to capitalize on this as the company’s chips will play a crucial role in the computing devices that will run the metaverse. With this in mind, is NVDA stock a buy?
Another name to consider in the metaverse space now would be Autodesk. In general, it is a software company that caters to the architecture, engineering, and construction industries. Now, the real focus is what Autodesk’s software can do. The company is mostly known for its industry-leading AutoCAD software. Without going into too many details, AutoCAD is a commercial computer-aided design and drafting software application. In practice, AutoCAD helps with the virtual design process, allowing users to generate buildings, infrastructure, and more digitally. With Autodesk literally providing the building tools of the metaverse, ADSK stock could be worth watching.
Despite all of this, the company’s shares appear to be in a slump this year. This would be due to the company’s less-than-ideal guidance figures. However, Autodesk still reported solid figures in its latest quarterly earnings report last week. For starters, the company posted an earnings per share of $1.33, topping consensus estimates of $1.26. Moreover, Autodesk raked in a total revenue of $1.13 billion, posting a sizable 18% year-over-year increase.
All in all, CEO Debbie Clifford noted that demand for Autodesk’s offerings remains “robust in Q3”. In turn, Clifford added that the company is seeing strong new subscriptions and renewal rates across its portfolio. Even as Autodesk sees potential headwinds from ongoing pandemic conditions, its metaverse-based prospects should be considered. Given all of this, will you be adding ADSK stock to your portfolio anytime soon?