The previous year has brought about a lot of exciting developments in the digital 3D space, which has made Metaverse stocks a significant area of interest for investors. The Metaverse market size is expected to reach $1 trillion by 2030, primarily due to the massive growth potential of extended reality technology.
As numerous businesses are looking to become a part of the Metaverse, there are various options for investors to choose from. However, it is essential to note that one must conduct prior research before investing; this article does not aim to give any financial advice. We wish to outline some of the best Metaverse stocks with incredible growth potential in 2023.
If you’re new to the world of Metaverse investing, this article will also dive deeper into what Metaverse stocks are, what indicators to keep an eye out for, and much more.
- This article provides a complete guide on investing in Metaverse stocks. We also discuss several exciting facts, such as Metaverse vs. Web 3 stocks and what stocks are worth investing in for 2023.
- Metaverse stocks represent units of ownership in companies that are currently working on the growth and development of the Metaverse space. This includes companies working on AR/VR technologies, companies working on building immersive 3D virtual spaces, and more.
- Some of the best Metaverse stocks in 2023 include Apple, Microsoft, Unity Software, Amazon, etc.
- Since the Metaverse has immense growth potential, investing early into these stocks can be very lucrative for the right investors.
- It is very important to note that there are several risks associated with investing in this space since it is relatively new. Investors must conduct their research before making a decision.
What are Metaverse Stocks?
Metaverse stocks, also known as shares, represent ownership in publicly traded companies that are currently working on developing the virtual realm. This includes companies working on things such as virtual reality/augmented reality headsets, 3D development software, virtual world creation, and much more.
One common misconception about the Metaverse is that many assume that only tech and gaming companies work in the virtual space. That is definitely not the case; large brands such as Nike, Gucci, and more have created virtual spaces for users to interact with their products and services. One of the most significant benefits of the Metaverse is that it allows businesses to interact with their target customers in the virtual realm. This is perfect for large brands that can capitalize on the growth of the Metaverse to expand their product offering.
Types of Metaverse Stocks:
Some of the main types of Metaverse companies include:
- Hardware Companies: This includes organizations that are working on immersive hardware such as VR/AR headsets, sensors, 3D treadmills, haptic bodysuits, and more.
- Infrastructure Companies: Organizations that provide the technologies needed for the Metaverse to function properly, such as cloud computing, servers, and more.
- NFT Companies: These organizations focus on creating and selling digital assets (NFTs) by minting them on the blockchain and selling/buying them from online marketplaces.
- Marketing Companies: These companies help businesses market themselves in the virtual realm using strategies such as virtual billboards, virtual events, and more.
- Gaming Companies: These companies work on creating gamified “virtual experiences” to leverage technologies such as AR/VR.
What is the difference between Metaverse Stocks and Web3 Stocks?
To understand the differences between Metaverse Stocks and Web3, one must take a deeper look into their underlying concepts. Web3 refers to the 3rd generation of the internet, where the primary focus is “decentralization” using blockchain technology. Companies working in the Web3 space include decentralized finance platforms, blockchain technology companies, crypto exchanges, and more. The concept of decentralization offers numerous exciting benefits to end users, such as more ownership and control, the ability to monetize digital creations, etc.
In contrast, the Metaverse focuses on virtual environments where individuals can work, interact, shop, play, and much more. Many companies in this space are working on creating immersive technologies to enhance experiences online. Examples of Metaverse companies include AR/VR companies, social media companies, gaming companies, NFT platforms, virtual real estate companies, and much more. Metaverses can be centralized and decentralized; for example, Horizon Worlds by Meta is a centralized Metaverse.
While investors can purchase both types of stocks, each type has its own set of risks and growth opportunities. Since the space is still relatively new, making future predictions is extremely difficult.
It is essential to understand that the spaces are inexplicably interlinked. Metaverse users will be utilizing Web3 technologies to benefit from virtual economies, thus contributing highly to immersion in the virtual realm.
Top 12 Metaverse Stocks
The Metaverse space is rapidly evolving, and with its significant growth potential, it is an extremely attractive option for investors. If you’re looking to invest in Metaverse Stocks, here are some of the best stocks to invest in, in 2023:
Amazon’s extensive resources and technological capabilities have positioned it as one of the biggest tech giants contributing to the Metaverse. Metaverses can utilize their cloud computing capabilities to power large virtual worlds and much more.
The company’s “AWS IoT Twin Maker” also makes it much easier for developers to create digital twins of real-life components that are used to map full large-scale cities for planning and testing purposes.
The stock is currently priced at $93.68, with a market cap of $955.65B. The eCommerce giant is a relatively safe investment as it has already established a strong foothold in the digital market.
Meta Platforms (META)
Meta, formerly known as Facebook, has been working on the Metaverse for quite a while, with one of their first acquisitions of Oculus back in 2014. Since then, Meta has created several VR headsets, with the MetaQuest2 being the most popular. The team is also working on incorporating haptic feedback into gloves and other items to allow users to “feel” interactions in the virtual world.
Apart from their focus on hardware, Meta is also working on creating their Metaverse called “Horizon Worlds.” The company’s vision is very clear with Zuckerberg’s announcement of investing $10B annually in the Metaverse.
The stock is priced at $136.15 and has a market cap of $357.01B. With their prior success in establishing a massive social media platform in the past, many investors are excited to see what Zuckerberg and his team have in store for the Metaverse.
With over 61.5 million daily active users (up 18% year over year) worldwide, the Roblox Metaverse is one of the largest Metaverses online. Apart from thousands of games within their Metaverse, Roblox offers players the opportunity to create their Metaverses using the platform’s in-built 3D development tools.
The platform offers users interactive environments to play, interact and socialize with other players. These environments can be completely customized to a user’s needs.
The stock is currently priced at $35.38 with a market valuation of $21.257B. Roblox stock prices increased up to 12% after the release of their yearly statistics, mitigating concerns about falling engagement rates after the pandemic.
Autodesk is widely known for producing software for the architectural or engineering sector. Their product offerings include software such as Revit and AutoCAD, which are essential tools for architects, structural engineers, and more for real-life buildings.
Autodesk announced a partnership with Epic Games in 2022, announcing their intent to build a design software for the Metaverse. Andrew Anagost, Autodesk’s CEO, also announced their vision to contribute to the “industrial metaverse” or “design metaverse.”
Autodesk initially provided a one-time payment model. This allowed consumers to continue using the same version while only investing in a new product when an upgrade was required. Nevertheless, Autodesk has shifted to a subscription-based business model that calls for an annual license. Autodesk Revit customers can also access Epic Games’ Twinmotion when they purchase a subscription.
The firm has increased its revenue by using this method to help it establish a recurring source of income. Since making its NASDAQ launch in 1985, AutoDesk has produced positive returns for investors through its shares. The stock is currently priced at $205.90 with a market cap of $44.426B.
NVIDIA is globally renowned for its graphical processing units. With their prior massive success in the graphics market, it is no surprise that their graphical processing chips are currently powering several Metaverses.
Apart from their hardware development capabilities, they have also developed the “Omniverse”. Where developers can collaborate on 3D environments and access prebuilt digital libraries to speed up the development process.
The stock is currently priced at $178.39 with a market cap of $444.54B. The company will play a significant role in hardware and software development for the Metaverse, making it an excellent option for investors.
Sony is a major player in the gaming and entertainment space, with the company exploring several opportunities in the Metaverse. Their console, the PlayStation, is one of the largest gaming platforms worldwide, and they have also developed a PS VR headset. Gamers can now enjoy an extensive library of games using virtual reality on their latest PlayStation 5 console.
The current stock price is $89.29, with a market cap of $110.90. With their interest in the cloud gaming and 5G space, Sony has a lot of exciting upcoming developments for individuals to look forward to.
Matterport allows users to map 3D digital replicas of physical environments completely. Their impressive technology comprises high-tech 3D cameras and sophisticated image processing algorithms that facilitate the digital twin development process.
The company currently offers a subscription-based flexible platform on the cloud that allows the storage of digital models, allowing developers to collaborate seamlessly without hassle.
While the company is not as large as the others on this list, its third-quarter statistics recently surged its stock price by 37%, bringing it to the radar of many investors. The stock is currently priced at $3.06 with a market cap of $879.5M.
Disney’s enterprise consists of an extensive portfolio of entertainment and media-based products. The company also operates several popular theme parks where individuals can interact with their favorite Disney characters.
The company recently released an AR movie and has shown interest in developing a “Disney Metaverse”. Which may also feature virtual theme parks, movie experiences, and more.
Their incredibly strong position in the market, current portfolio of popular franchises, and massive potential for growth make them a very lucrative opportunity for investors. The stock is currently priced at $103.48 with a market cap of $188.705B.
While Apple has not explicitly announced any plans for developing a separate Metaverse, they have been working on Augmented Reality hardware and software for quite some time now. The company has ensured that every modern device is AR-compatible to leverage its existing library of AR applications.
Apple has also released Reality Kit, which allows developers to create 3D AR applications using pre existing libraries. By empowering developers to create their AR applications, Apple has become one of the frontrunners in the AR space.
There are also rumors of Apple working on an AR headset that is set to be released later this year. The stock is currently priced at $137.87 with a market cap of $2.183T.
Unity Software (U)
Unity Technologies is very well known for its work in the gaming and VR space. The company has released several tools for developers to create gamified Metaverse experiences. They have also raised over $1 billion in funding over several investment rounds.
Their impressive technology portfolio consists of tools for real-time 3D development for gaming, VR/AR development, and much more.
The stock is currently priced at $31.31 with a market cap of $12.619B.
Snap, the parent company of Snapchat, has taken a unique approach to develop the Metaverse. Using augmented reality, Snap aims to converge the physical realm with the virtual realm.
The company released its version of AR spectacles, facilitating users to enhance their physical environments with virtual objects. Users can try on clothes virtually using spectacles and much more.
Despite the fact that its stock price has taken a hit in the past year, investors cannot ignore the company’s tremendous potential for growth. The stock is currently priced at $9.69 with a market cap of $16.11B.
Microsoft’s approach towards Metaverse development primarily consists of two products, i.e., mixed reality headsets and 3D development software. Microsoft’s Hololens2 is currently used in several industries by large companies such as Kawasaki and Heinz.
Microsoft Azure enables developers to create digital twins seamlessly using different tools. These digital twins can gather real-time physical data and can be used for planning and testing purposes to increase overall efficiency.
The price of this stock is $240.22 with a market cap of $1.791T.
Are Metaverse Stocks Worth Investing In?
The Metaverse is evolving rapidly and is projected to reach a valuation of $5 Trillion by 2030, according to a report by McKinsey. Therefore, this industry has tremendous room for growth, making it a potentially lucrative opportunity for early investors.
However, it is also important to note that several risks are associated with investing in a space in its infancy. Investors must conduct their research and risk assessment before making purchase decisions.
This post from Metaverse Insider aims to give information and provide access to information to investors to help them make their own decisions and is not meant to be interpreted as investment advice.
What are some of the best Metaverse Stocks in 2023?
Some of the best Metaverse stocks include Apple (APPL), Microsoft (MSFT), Unity (U), Meta (META), and Amazon (AMZN)
What are Metaverse Stocks?
Metaverse stocks are units of ownership in companies that are currently working on developing the Metaverse. For example, these companies could be AR/VR companies, metaverse platforms, cloud computing companies, and more.
How to invest in the Metaverse?
You can invest in the Metaverse by purchasing stocks through a reliable broker. Or you can also look into investing in exchange-traded funds (ETFs).