For investors who want to capitalize on, and immensely profit from, new trends in the market, they should look no further than the novel Metaverse. The Metaverse is a term that describes a virtual world where people can interact with each other and digital content in immersive and realistic ways. The concept has gained popularity in recent years, especially after the COVID-19 pandemic accelerated the adoption of online platforms for entertainment, education, work and socializing. Many companies are investing in the development of technologies and creating several Metaverse stocks to make you rich. Some of these companies are well-known names in the tech industry, while others are emerging players that have the potential to disrupt the market.
Here are three must-buy Metaverse innovators who are at attractive entry points.
Meta Platforms (META)
When considering Metaverse stocks to make you rich the obvious first choice is Meta Platforms (NASDAQ:META). The social media company once known as Facebook, remains the world’s largest social media platform. And pioneering the Metaverse conceptualization seems like another way Meta could grow further and get ahead of peers. The reality is, Meta had already been dipping its toes into virtual reality (VR) well before announcing its Metaverse intentions. The company acquired both Oculus, a leading brand of virtual reality headsets, and Horizon, a social VR platform allowing users to create and explore virtual worlds, before creating the Metaverse.
Meta has a massive user base of more than 3.9 billion monthly active users across its family of apps. The number of cumulative users alone gives Meta an impressive edge in building out and testing its novel social media endeavor.
Though revenues struggled year-over-year in 2022, Meta has been able to pull a number of surprises in 2023. The social media giant beat Q1 2023 earnings estimates and astounded investors with another quarterly earnings beat in the second quarter. Although the company’s virtual reality business is still getting off its feet, Meta returning to form, after enduring quarters of declining revenue growth, should get investors excited.
Unity Software (U)
Unity Software (NYSE:U) is the world’s leading platform for creating and operating interactive real-time 3d content and experiences. The company’s software solutions support content creators of all sizes across various industries such as gaming, entertainment, education, automotive and architecture.
The gaming platform has been able to beat Wall Street’s expectations twice this year. Unity expects to continue its robust growth in the third quarter and beyond, as it projects revenue between $540 million and $550 million for the third quarter of 2023. The company is investing heavily in research and development to enhance its platform capabilities and expand its addressable market.
Given the breadth of Unity’s platform, the company has the potential to be an undisputed leader in the Metaverse space, and its proven track record of delivering high-quality and innovative solutions should excite many investors for the future. This is definitely one of the Metaverse stocks to make you rich that you do not want to sleep on.
Cloudflare (NET)
Cloudflare (NASDAQ:NET) is neither a pure play Metaverse business nor directly competing in the space. Still, the company’s wide network of servers could see it benefit from the novel sector’s growth. The most important service Cloudflare offers is access to something called a Content Delivery Network or CDN. Cloudflare’s CDN is just a series of collocated servers wherein Cloudflare’s customers can affordably store content or data. Think about the simple task of accessing a favorite streaming service or YouTube channel. Because a CDN is a “distributed network,” a user can pull up a video because they would have access to the closest server.
Others might know Cloudflare through having to interact with its security apparatus for websites. If you have ever accessed a website and had a virtual private network (VPN) on, perhaps you had a Cloudflare pop-up window verifying if you were a “real human.” In other words, the Cloudflare CDN also protects customers’ content from malware and other intrusive attempts so that websites do not have to build out that security infrastructure on their own.
Cloudflare is well-positioned to benefit from the growth of the Metaverse, as it provides the network infrastructure that secures and accelerates the delivery of applications. For example, Cloudflare powers Epic Games, one of the leading developers of games such as Fortnite. The company also powers Discord, a popular communication platform for online communities. For investors interested in the future of the Metaverse, Cloudflare is an obvious pick.
On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.