3 Stocks to Buy for the Growing Metaverse Economy
The metaverse is emerging as a powerful economic force, creating substantial opportunity for top metaverse stocks to buy.
The market value of metaverse activity could reach an astonishing $4 trillion to $5 trillion by 2030. Consumer and enterprise use cases, including e-commerce, gaming, banking, and manufacturing, will drive the value. From augmented to virtual reality, various experiences will be available at multiple price points, enabling a large global user base. Consumer-facing industries like media, entertainment, advertising, and apparel are expected to be early adopters, but the metaverse also has essential applications in the healthcare and industrial sectors.
As computing costs decline and blockchain and AI technologies advance, the metaverse will continue to grow and evolve. As a result, it has enormous potential for transformational change and will play a critical role in the global economy. The article will explore three stocks investors should consider buying in the growing metaverse economy.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) has experienced a remarkable resurgence, bouncing back from a 65% drop in 2022 to a nearly 90% increase in stock value year to date. Q1 2023 has been particularly favorable, with over 3 billion users engaged in at least one of the company’s apps daily.
Notably, in Q1, Meta shared a plan to focus on introducing AI to billions of users in practical ways.
For example, it will be adding AI to chat functionalities in Messenger and WhatsApp, and introducing visual creation applications for Facebook and Instagram.
In Q1 2023, Meta’s Reality Labs division recorded revenue of $339 million, which declined by 51% year over year thanks to decreased sales of Quest 2. During the same period, expenses for Reality Labs amounted to $3.9 billion.
While these numbers may not be exciting, Meta plans to increase its organizational efficiency to ensure it constantly innovates and invests in high-leverage opportunities, including AI and the metaverse.
Roblox (RBLX)
Roblox (NYSE:RBLX) is another leading player in the metaverse. It offers a vast digital world specializing in games, art, business, and more. In March 2023, Roblox reported impressive performance, including 66.2 million daily active users, 4.8 billion hours engaged, and estimated revenue between $212 million and $223 million, up 15% to 21% year over year.
Finally, Roblox’s progress in creating a platform for Gen-Z is evident from its existing user base and popularity. As Gen-Z relies increasingly on smartphones, Roblox prioritizes making its platform easily accessible on mobile devices. Approximately 72% of traffic to Roblox servers comes from mobile devices. Engaging events and development and creation tools are other features that make Roblox more appealing to Gen-Z users.
Unity Software (U)
Unity Software (NYSE:U) provides a platform for creating and operating interactive, real-time 3D content. It aims to be the world’s leading RT3D content creation, operation, and monetization platform.
This focus is paying off well. It is building the metaverse’s architecture with the help of professional designers and plans to win with software developers, content and art creation professionals, and independent artists. Unity focuses on becoming a vital component of the virtual gaming and app ecosystem infrastructure. It plans to deliver $1 billion in adjusted EBITDA run-rate by the end of 2024.
Despite the pandemic, the macroeconomic environment remains resilient. The gaming industry is seeing firm productivity, and the investment in game development is holding up well, supporting Unity’s long-term outlook.
As of this writing, Yiannis Zourmpanos was long META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
