Navigating the stock market’s tumultuous seas is daunting. One moment, you’re riding the wave of a booming tech stock. Next, you’re being pulled under by an unexpected market downturn. But amid the ebb and flow of market trends, there lies a treasure trove of opportunities. One sector making waves lately is the metaverse. Undervalued metaverse stocks present a golden opportunity for investors looking to dive into this burgeoning market.
However, it’s essential to grasp the metaverse concept before moving forward. The metaverse represents a new digital frontier, combining virtual and augmented reality to create a fully immersive 3D world. It offers unprecedented investment opportunities, opening up new markets and demand for innovative technologies, which makes it incredibly attractive for stock pickers seeking high returns. According to McKinsey & Company, the metaverse holds the potential to generate up to $5 million in value by 2030.
From affordable metaverse stocks to high-potential metaverse investments, this article will shed light on undervalued metaverse stocks you should keep your eye on.
Verizon Communications (VZ)
With a15.4% year-to-date dip, Verizon Communications’ (NYSE:VZ) latest financials are nothing to write home about. But that doesn’t stop them from being a great option in high-potential, undervalued metaverse stocks.
Strategic moves like a 7.95% annual dividend yield, talks of an ESPN partnership with Disney (NYSE:DIS), rating upgrades from Citi and a $2.44 billion net change in cash, up by 2314% show a strong financial position.
Moreover, the strategic partnership of Verizon with Meta (NASDAQ:META) is crucial for the development of the metaverse. The metaverse is slowly becoming a part of various aspects of our daily lives, from gaming and travel to commerce and accessibility. Verizon’s innovative 5G technology is key in leading this transformation. 5G is also essential in the ecosystem powering the metaverse, as the virtual world demands the ability to handle massive amounts of data. Thus, Verizon is not only contributing to the development of the metaverse but is actively shaping its future, making it a vital player in this digital revolution.
In spite of recent setbacks, Verizon Communications remains an affordable metaverse stock with an approaching 8% yield. This overlooked market spot, with a yield higher than the P/E ratio, presents an opportunity for a thoughtful investment. Remember, the company’s weakness is your opportunity. Therefore, don’t miss out on this metaverse stocks buy alert.
Qualcomm (QCOM)
Despite a recent 8% decline, Qualcomm (NASDAQ:QCOM) remains a leader in the metaverse domain, presenting attractive investment prospects in undervalued metaverse stocks. Even with a 52% decrease in net income, there was a 160% surge in net cash change. Qualcomm has tactically positioned itself with collaborations with Mercedes (OTCMKTS:MBGYY), BMW (OTCMKTS:BMWYY), Amazon’s (NASDAQ:AMZN) AWS and venturing into AI. These strategic decisions accentuate Qualcomm’s standing as a top choice for metaverse stocks, despite a 12% decrease in global semiconductor sales.
Qualcomm is rapidly emerging as a pivotal player in metaverse development, as evidenced by its strategic partnerships and technological advancements. The Alaian operator alliance selected Qualcomm to strengthen emerging XR start-ups. Moreover, Qualcomm is partnering with Lamina1, a first-layer blockchain protocol, and HTC to create an open, high-quality metaverse. Additionally, during the MWC event, Qualcomm declared its collaboration with seven international telecom operators to support XR devices using Snapdragon Spaces, an XR platform engineered to facilitate smooth interactions in the virtual realm. This alliance will expedite the availability and accessibility of XR devices, a key element for the metaverse. Furthermore, Qualcomm is partnering with Telefónica (NYSE:TEF) to establish the foundation for the future of XR and the metaverse. This joint effort will be crucial in shaping the metaverse’s structure and ensuring its scalability.
The recent downturn, exacerbated by concerns over Apple’s (NASDAQ:AAPL) iPhone sales in China, offers a prime investment opportunity for astute investors interested in affordable metaverse stocks with strong future potential.
Roblox (RBLX)
Roblox (NYSE:RBLX) is attracting attention as one of the top metaverse stock picks despite a challenging second quarter in 2023.
The latest quarterly results include a net income decrease of 60% year-over-year and a net change in cash down by 436%. These financial hurdles have been countered with a 15% increase in revenue.
Although the past six months have seen a 28% dip in stock value, high-potential metaverse investments like Roblox are making strides in innovation to boost revenue. Examples include enabling game creators to sell 3D virtual goods and launching avatar-based voice calls with facial motion tracking.
Moreover, Roblox is expanding its reach by making its platform available on Sony’s (NYSE:SONY) PlayStation 4 and PS5 and allowing players to make calls from inside the game. These efforts underscore the company’s commitment to maintaining its leadership position in the metaverse space.
With the market reacting variably to mixed Q2 results, some analysts have upgraded Roblox. Despite short-term setbacks, the analyst upgrades indicate that it remains an affordable metaverse stock with long-term potential. While recent engagement and user growth have disappointed, resulting in a 19% dive, the buy alert on Roblox shares remains. This is given its strategic initiatives to enhance user experience and revenue generation capabilities.
On the publication date, Faizan Farooque did not hold (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.