4 Top Metaverse Stocks To Watch Today
While stocks continue to see-saw this week, investors may want to consider looking at metaverse stocks. Accordingly, this area of the stock market today is becoming an increasingly relevant one. Rightfully so as the global pandemic continues to incentivize the shift to digital workspaces. Sure most companies across the globe are turning to the likes of Zoom (NASDAQ: ZM) and Salesforce (NYSE: CRM) to do so. However, the metaverse, quite literally, is operating on an entirely new playing field. Through the combination of virtual reality (VR) and augmented reality (AR), the metaverse offers companies plenty of practical benefits on top of conventional teleconferencing services.
Not to mention, even some of the biggest names in the tech world are turning towards this upcoming industry now. For starters, we could look at Meta Platforms (NASDAQ: FB) and Apple (NASDAQ: AAPL). In Meta’s case, the company is, arguably, a goliath in the metaverse space already. From its world-famous social media portfolio to its wide array of VR/AR tech, this is apparent. At the same time, tech analysts such as Dan Ives over at Wedbush Securities remain bullish on AAPL stock now. Ives is expecting a summer 2022 release for the company’s rumored AR headset. Should this be the case, the analyst sees AAPL stock hitting a price of $245 apiece.
Overall, it seems that investors and companies alike are looking to benefit from the upcoming metaverse wave. Amidst all the recent market volatility and inflation concerns, investors could be seeing opportunity among the best metaverse stocks now. As such, could one of these metaverse players be worth keeping an eye on in the stock market now?
Top Metaverse Stocks To Buy [Or Sell] This Week
- Advanced Micro Devices Inc. (NASDAQ: AMD)
- NVIDIA Corporation (NASDAQ: NVDA)
- Electronic Arts Inc. (NASDAQ: EA)
- Amazon.com Inc. (NASDAQ: AMZN)
Advanced Micro Devices Inc.
First up, we have Advanced Micro Devices (AMD), a multinational semiconductor company that develops computer processors and related technologies. With over 50 years of experience in the industry, the company continues to drive innovation in high-performance computing, graphics, and visualization technologies. Its products and services are used by hundreds of millions of consumers all over the globe. AMD stock currently trades at $138.25 as of 1:01 p.m. ET and is up by over 40% in the past year.
On Tuesday, KeyBanc Capital Markets upgraded AMD stock to an Overweight rating. Analyst John Vinh notes that the company is well-positioned to benefit from robust high teens cloud data center growth in 2022. He also set a price target of $155, adding that AMD could meaningfully outpace industry growth. The analyst also adds that the company has one of the most compelling data center growth stories, given its exposure to the cloud and continued market share gains. Given the coverage by KeyBanc, is AMD stock worth investing in right now?
Nvidia is another metaverse company that has been on many investors’ radars. In fact, the company revolutionized modern computer graphics with the invention of the graphics processing unit (GPU). It has also made huge strides in the artificial intelligence space and is also making headway into the metaverse. The company calls its iteration of the metaverse the Omniverse and says that its platform can be used to connect 3D worlds into a shared virtual universe. The Omniverse can also be used across a growing number of industries. NVDA stock currently trades at $281.16 as of 1:02 p.m. ET.
Last week, the company announced the next direction of its platform for gamers and creators, unveiling more than 160 gaming and studio GeForce-based laptop designs. It also announced new generation content and the expansion of both GeForce NOW cloud gaming and the Nvidia Studio ecosystem. This includes the launch of Nvidia Omniverse for creators as well. Notably, its new platform feature, the Omniverse Nucleus cloud enables simple one-click-to-collaborate sharing of large Omniverse 3D scenes. With that in mind, is NVDA stock a top metaverse stock to consider buying?
Electronics Arts Inc.
Following that, we have Electronic Arts, a video game company that is also one of the largest gaming companies in the world. The company continues to pioneer a transformation in the way people play video games. It is also a global leader in digital interactive entertainment and develops games for internet-connected consoles, mobile devices, and personal computers. As of 1:02 p.m. ET, EA stock currently trades at $132.63. The company says it will announce its fiscal third-quarter financials on February 1, 2022.
How has the company been doing financially? In its latest quarter reporting in November, total revenue for the quarter was $1.82 billion, increasing by 58.6% year-over-year. Net income for the quarter was $294 million or a diluted earnings per share of $1.02. it also paid a cash dividend of $0.17 per share during the quarter.
“This was the strongest second quarter in the history of Electronic Arts, with more players around the world joining and engaging in our leading franchises, new launches, and live services,” said Andrew Wilson, CEO of Electronic Arts. “Thanks to our incredibly talented teams, we’re excited to deliver more amazing experiences this holiday season, and connect hundreds of millions of players around the world through our EA SPORTS games, Apex Legends, Battlefield 2042, and more.” All things considered, is EA stock a buy?
Another name to consider among tech giants that could benefit from the metaverse is Amazon. For the most part, this would be thanks to its industry-leading cloud computing offering, Amazon Web Services (AWS). In theory, companies across industries could turn to AWS for its on-demand cloud computing solutions. The likes of which would serve as a crucial foundation for upcoming players developing metaverse projects of their own. Now, AMZN stock currently trades at $3,313.29 as of 1:03 p.m. ET.
Despite the overall momentum across Amazon’s flagship divisions, analysts seem to see more upside for AMZN stock. In detail, both Morgan Stanley (NYSE: MS) and Bank of America (NYSE: BAC), or BofA for short, provided rosy updates on the company’s shares recently. On one hand, MS analyst Brian Nowak is raising his price target for AMZN stock to $4,200 while maintaining an Overweight rating.
On the other hand, BofA analyst Justin Post reiterated a Buy rating and price target of $4,450 on it. Both firms cite increasingly positive long-term growth prospects for Amazon as key factors for these updates. In particular, BofA sees the company riding a “massive infrastructure investment cycle” between 2023 to 2025. Would all this make AMZN stock a top pick among metaverse stocks for you?
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