Are These The Best Metaverse Stocks To Buy Right Now?
Metaverse stocks have been underperforming in the stock market thus far this year. Thus, investors may be questioning if this is an opportunity to buy the dips. Before diving deeper, let us have a basic understanding of what the metaverse could potentially be one day. It basically refers to the next step in the evolution of the Internet. It could be a digital world where people can gather to work, play and hang out while having an immersive 3-dimensional experience. Or, it may well just be a fancy term for the advancement of virtual reality. Therefore, many companies have jumped on the metaverse bandwagon in anticipation of a new digital economy.
Recently, Qualcomm’s (NASDAQ: QCOM) CEO claimed that the best has yet to come for metaverse adoption and investment. He believes that “it’s going to be a very big opportunity” and Qualcomm is already powering more than 40 virtual and augmented reality devices in the world today. On top of that, the likes of Meta (NASDAQ: FB) continue to invest in the metaverse despite its daunting losses. Last year, Meta spent more than $10 billion on its Reality Labs business. However, such a strong commitment from one of the largest and most influential companies in the world could be a healthy sign for the industry. Given these considerations, betting on companies that have a place in the metaverse could be a worthwhile play for the future. So, here are some of the top metaverse stocks to know in the stock market today.
Metaverse Stocks To Watch In May 2022
- Roblox Corp (NYSE: RBLX)
- Unity Software Inc (NYSE: U)
- Autodesk, Inc. (NASDAQ: ADSK)
- NVIDIA Corporation (NASDAQ: NVDA)
When looking for the top metaverse stocks today, Roblox would often come to mind. Essentially, this is a tech company that operates a human co-experience platform. Upon registration on the platform, users can personalize their Roblox avatar and make enhancements through the company’s avatar marketplace using virtual currencies. Additionally, users within the platform can interact with one another to explore and develop 3D experiences. Hence, it should not be surprising that investors who believe in a future defined by the metaverse would keep a close eye on RBLX stock.
Last week, Spotify (NYSE: SPOT) announced that it will become the first music streaming brand to have an official presence within Roblox. The company launched “Spotify Island”, a place where artists and fans could come together to unlock exclusive content and buy artist merchandise. Other than that, players can explore and interact by walking, running, touching, and picking up various objects. From this, we can see that companies view Roblox as a way to tap into the metaverse. With that said, would RBLX stock be a huge opportunity at its current valuation?
Another top name that could play an important role in the metaverse is Unity. For those unaware, the company provides a platform for creating and operating interactive, real-time 3D content. On one hand, its Operate Solutions enable customers to create and monetize their content across a range of third-party content distribution platforms. On the other hand, its Create Solutions are used by content creators and designers to create interactive 2D and 3D content.
With the company due to announce its fiscal first-quarter earnings later today, all eyes are on U stock to see if it could keep up its impressive growth from last year. In the previous quarter, Unity announced quarterly revenue of $315.9 million, up 43% year-over-year and ahead of guidance. Also, its full-year 2021 revenue was $1.1 billion, representing a growth of 44% from the same period in 2020. These impressive results were largely driven by exceptional execution and innovation by the company. Now, do you think Unity could replicate its success moving forward? If so, would you invest in U stock ahead of its earnings report?
Similar to the previous entry, Autodesk specializes in 3D design. Its products include AutoCAD Civil 3D, architecture, engineering and construction collection, Autodesk Build, Revit, Fusion 360, and many more. In addition, the company’s product development and manufacturing software provide manufacturers in automotive, transportation, industrial machinery, and building product industries. Naturally, a company of this nature would likely be in a prime position to capitalize on a metaverse future.
In April, the company announced that Evans General Contractors is adopting its Autodesk Construction Cloud. Aside from that, Evans will also be incorporating the powerful construction management platform into its standard operating procedures. Thus, teams across Evans can maximize coordination across project stakeholders while minimizing errors on these projects. All in all, Autodesk is changing the world with its technology in architecture, engineering, and even media entertainment. With that in mind, would you bank on the future of ADSK stock?
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To sum up the list, we have the multinational tech company, Nvidia. Known for its line of graphics processing units (GPU), the company’s products and services are used by many important industries that run the world today. In fact, the company invented the GPU and has since paved the way for next-generation computer graphics, high-performance computing, AI, and data centers. Late in March, Nvidia announced a series of new features for its Nvidia Omniverse platform during the Game Developers Conference.
In detail, the company announced the Nvidia Omniverse Cloud, a suite of cloud services that gives creators and developers instant access to the Omniverse platform. This would effectively allow developers and creators from around the world to hop on the Omniverse to collaborate and work without having to transfer massive datasets. Other than that, Nvidia also announced new features that will make it easier for developers to share assets, sort asset libraries, and deploy AI to animate characters’ facial expressions. This includes updates to Omniverse Audio2Face, Omniverse Nucleus Cloud, Omniverse DeepSearch, and the introduction of Unreal Engine 5 Omniverse Connector. With so much going on at Nvidia pertaining to the metaverse, would you add NVDA stock to your portfolio?