Are These The Best Metaverse Stocks To Buy After Facebook’s Big Move?
One of the hottest investment themes in the stock market lately has to be the metaverse stocks. For many years, the virtual reality space has long been part of sci-fi novels and movies. And thanks to advancement in virtual reality (VR) technology and computing power, that fiction is slowly becoming reality. Whether we’re talking about augmented reality (AR), VR, or digital entertainment, Facebook’s (NASDAQ: FB) latest update has sent a shockwave through tech.
The tech giant made headlines in late October, announcing that it’s changing its corporate name to Meta as part of a new focus on building a metaverse. The concept involves constructing integrated virtual online environments in which people live, work and play. Make no mistake though, the metaverse isn’t something that Facebook created. This is something that has been around for years. So, what exactly is the metaverse?
At its core, it’s a realm that would function like the internet we’re used to, but one in which our avatars could move through and participate in. Perhaps you’ve seen the movie “Ready Player 1”. That is probably one of the best examples to imagine how the metaverse blends into the real world. The metaverse has plenty of potential to be as big as the internet. In fact, Bloomberg Intelligence estimated that the global metaverse market could reach $800 billion by 2024. This is why many metaverse stocks have become a focus in the stock market today after Facebook’s latest news.
Best Metaverse Stocks To Watch Now
- Roblox Corp. (NYSE: RBLX)
- Unity Software Inc. (NYSE: U)
- Fastly Inc. (NYSE: FSLY)
- Autodesk Inc. (NASDAQ: ADSK)
- NVIDIA Corp. (NASDAQ: NVDA)
Roblox is an online entertainment platform that may be the closest thing to an existing social metaverse today. In essence, the company is powered by a global community of millions of developers who produce their own immersive multiplayer experiences using Roblox Studio, its intuitive desktop design tool. It also continues to rank as one of the top online entertainment platforms for audiences under the age of 18 and is purely driven by its community of users and developers.
The company recently announced that it will have its Investor Day 2021 on November 16, so there is certainly much to look forward to. Sure, Roblox stocks fell on Monday after the weekend outage that kept its popular games offline for three straight days. That could be a cause for concern, but that might just be a blip. Seeing how the company continues to innovate on pioneering its metaverse, should investors consider investing in RBLX stock after the recent dip?
Unity Software owns one of the two main 3D video game engines, which allows designers to customize how video game players move and interact within their games. Overall, virtually all the best games in the global video game market rely heavily on Unity’s tech. In turn, this could make U stock a go-to for investors looking to bet on the gamification of the metaverse. As of last week, Unity signed a partnership with Tripolygon, a 3D modeling service focusing on metaverse applications.
Moreover, this news comes less than a week after the launch of the Unity Gaming Services (UGS) platform. With UGS, Unity enables creators to develop 2D and 3D content for AR and VR devices alongside other consumer smart devices. On top of that, UGS also facilitates cross-platform launches. This would allow video game developers to access broader gaming markets, further incentivizing the use of Unity’s offerings. As such, could U stock be a top pick for you now?
Like cloud computing, the metaverse will need plenty of edge computing solutions to make it happen. And that’s where Fastly comes into the picture. Fastly operates an edge computing infrastructure-as-a-service (IaaS) platform that brings servers and other equipment to the source of data creation. In short, it helps reduce the lag time and latency of decentralization. Just imagine the sheer amount of data transfer needed to create the virtual world in real time. Without the edge computing solutions, these sorts of applications may be difficult to function.
In addition to its prospects as a metaverse stock, FSLY also makes an interesting growth play on the continued expansion of cloud computing. Some see edge computing as a sector that could reach about $15.7 billion by 2025. The increasing adoption of Internet of Things devices will bring edge computing to the fore. With a head start in edge computing and content distribution network, Fastly has certainly positioned itself nicely for the future. With Fastly reporting its earnings on Wednesday after the closing bell, I can understand why FSLY stocks are in focus as of late.
Autodesk is a software corporation that makes game-changing software and products. In fact, about 70% of Autodesk’s business comes from design software for architecture, engineering and construction (AEC). Engineers and architects use Autodesk’s application to virtually design 3D buildings and infrastructure projects. From construction to automotive and smartphones, professionals have likely used Autodesk software to create the products we enjoy today. But that’s not the focus here.
What’s impressive is that Autodesk now has a wide array of products designed specifically for building virtual reality and augmented reality 3D animations and buildings. And that sounds like a perfect fit for metaverse construction if you think about it. Recall from its second quarter, Autodesk’s AEC segment revenue grew 21% to $397 million, while its media and entertainment segment revenue came in 10% higher to $53.3 million. Considering all this, would ADSK stock make up your list of best metaverse stocks to buy right now?
NVIDIA has frequently been among the favorites of investors looking for the best semiconductor stocks to buy for the long haul. As the company produces graphics and video processing chips for high-end computing and AI, its products make it a powerful player in the world of the metaverse stocks. NVIDIA chips could play a crucial role in supplying the massive amount of processing power the metaverse will require. And in case you’re not aware, NVIDIA chipsets are already finding their way into a variety of servers and other centralized computers needed to run complex calculations.
What’s more, NVIDIA is also creating its own metaverse platform, called Nvidia Omniverse. The Nvidia Omniverse platform is a platform used for connecting 3D worlds into an integrated virtual universe. It has a wide range of enterprise applications, ranging from design collaboration, simulation of real-world architecture to tools for training robots. All things considered, it’s difficult to not include NVDA stock on your watchlist if you are highly bullish on the metaverse.