Everywhere you look, it seems like everyone keeps talking about the metaverse. What exactly is the metaverse? For those that don’t know, it’s essentially the next stage of the internet. Imagine being able to live in a virtual world, supported by concepts like virtual and augmented reality. Obviously, it’s a very long way before we reach the metaverse, but investors should start thinking about the companies that are poised to succeed once it’s here. In this article, I’ll discuss three top stocks for the rise of the metaverse.
This company accelerated cultural awareness One of the biggest reasons that investors have started to really consider an investment into the metaverse is because Facebook (NASDAQ:FB) changed its name to Meta Platforms (NASDAQ:FB). The company’s founder and CEO Mark Zuckerberg stated that the name change was meant to signal that Meta Platforms aspired to be known for more than just a single product (e.g., social media).
In fact, Meta Platforms have been a leading company in the metaverse for quite a few years now. In 2014, Meta Platforms acquired Oculus for US$2 billion. Unfortunately, it seems as though Meta Platforms hasn’t really done anything to capitalize on this acquisition just yet. Perhaps this name change will convince investors that Oculus will become more of a focus for Meta Platforms in the near future.
One thing’s for certain; if there’s a company out there that has the funds to throw into metaverse research and development, it would be Meta Platforms. If you’re looking for an easy entry into the metaverse, consider adding Meta Platforms to your portfolio.
A top metaverse play The Roblox (NYSE:RBLX) IPO was one of the most anticipated events in 2021. Many investors sought to acquire shares and eventually pushed the stock more than 50%. Since then, it has been relatively steady. However, since the start of November, Roblox stock has pumped another 70%. So, what’s got investors all crazy for Roblox?
Roblox provides a platform where users can play video games and socialize in a 3D virtual world. Many large enterprises are taking advantage of Roblox’s popularity to create brand awareness for themselves. Take Nike (NYSE:NKE) for example. The company announced that it would be partnering with Roblox to create Nike buildings, fields, and arena where users can compete in mini games ranging from tag and dodgeball to “the floor is lava.” If you’re interested in experiencing what the metaverse is all about, Roblox would be a great way to do that.
My top pick for the rise of the metaverse When it comes to metaverse stocks, my top pick is Unity (NYSE:U). This is a stock that I’ve been watching since its IPO. Unity is a leading video game developer. In fact, it’s considered to be one of the top developers often compared to Epic Games’s Unreal Engine.
Unity’s latest earnings report was very impressive. The company noted a 53% year-over-year increase in Q3 revenue and a dollar-based net retention rate of 144%. One reason that I didn’t consider Unity stock up until now is because I wanted to see the company branch out of just video game development. However, that may have been the wrong way to go about it. If Unity’s video game development because a central contributor to the rise of the metaverse, Unity stock could see massive gains from here.
The post 3 Stocks for the Rise of the Metaverse appeared first on The Motley Fool Canada.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Fool contributor Jed Lloren has no position in any of the stocks mentioned. The Motley Fool recommends Meta Platforms, Inc. and Roblox Corporation.
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