The race to dominate the digital frontier is escalating, with the top metaverse stocks taking the lead. With advancing technology, the metaverse concept is gaining more solidity, attracting investors keen to identify the frontrunners. These companies are pioneers in the realms of virtual and augmented reality, crafting immersive digital worlds. In the second phase of the technological revolution, the top metaverse stocks are not mere passing trends; they are actively shaping the future.
From online gaming platforms to social media giants, these companies are redefining how we interact online. Consequently, they present unique investment opportunities. In this article, we will examine three companies making notable progress in the metaverse.
We will delve into their strategies, growth prospects and why disregarding them for your investment portfolio could be a regrettable oversight. Here are the top metaverse stocks to buy.
Apple (AAPL)
Apple (NASDAQ:AAPL) has entered the metaverse with the Vision Pro, a mixed-reality headset showcasing its innovative hardware. With a 4K display and the ability to navigate through eye movement, voice commands and hand gestures, the Vision Pro offers a fully immersive experience that aligns with the concept of the metaverse. Despite its hefty price tag of $3,499, Apple’s loyal and affluent customer base may not be deterred.
Despite mixed financial results in the fiscal third quarter of 2023, including a 1.4% decline in revenue and a 7% decline in MacBook revenue, Apple’s services business reported $21.2 billion in revenue, an 8% sequential increase.
The shift towards a more services-oriented business and rock-solid balance sheet means it’s well-equipped to be one of those top metaverse stocks.
Roblox (RBLX)
Roblox (NYSE:RBLX) provides a multiverse experience in one app with a variety of games and environments. Roblox’s dedication to expanding its ecosystem is evident in its 22% year-over-year growth in total bookings and a 49% increase in research and development spending.
The company has made some strides to expand its reach. Recently, it started targeting users aged 17 and above with more mature content, aiming to retain its largest demographic, accounting for about 38% of its daily active users. The company announced plans to introduce experiences specifically suited for this age group, reflecting a more responsible TikTok-like content offering. That move by Roblox signifies a strategic shift to engage an older audience while maintaining safety standards, setting it apart from platforms like TikTok that lack these clear controls.
Despite these developments, the market reacted negatively overall to its latest earnings report. Still, Wall Street believes its share is undervalued. It has a $39.94 price target at the time of writing, representing a significant upside.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) has taken a big risk by betting on the metaverse, to the extent that it even changed its name to reflect this particular focus. In spite of recent job cuts in its dedicated VR/AR unit called Reality Labs, Meta has not stopped pouring substantial amounts of money into the segment, investing nearly $14 billion in 2022. The company’s chief executive officer (CEO), Mark Zuckerberg, has reiterated the company’s commitment to the metaverse vision.
News headlines have lambasted META stock and virtually all other metaverse stocks as an unrealistic and extremely expensive pipedream. The future where we all wear VR/AR headsets and interact in a virtual space may seem far away — even unreachably so. But it’s crucial to remember that the metaverse is meant to be a descriptive (and emergent) concept, not a normative one. In other words, we don’t all need to be strapped into $3,000 headsets to say the metaverse is unfolding, and there’s a good reason to argue it’s already here.
From Bitmoji avatars to NFTs to virtual concerts, elements of the metaverse exist in our daily digital lives. These manifestations may not fit the grandiose visions of a fully immersive virtual world, but they represent tangible steps towards a more interconnected and virtualized reality.
The internet didn’t revolutionize commerce overnight, and the metaverse won’t either. Just as the early days of the internet included dial-up connections, rudimentary web design and skepticism about online shopping, the metaverse is now in its infancy. So, it has technological limitations, high costs and a lack of widespread understanding or acceptance. But that doesn’t mean it’s a fleeting trend or a doomed venture. META understands this reality perhaps most of all and is, therefore, one of the top metaverse stocks to keep on your watchlist.
On the date of publication, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.