This content originally appeared on Level Up Coding - Medium and was authored by Dmytro Spilka
It might be the technological development that everyone’s talking about, but investors are already eagerly seeking out long plays in order to profit from the long-awaited emergence of the metaverse.
The metaverse is a combination of numerous different elements of technology like virtual reality, augmented reality and video which are capable of catapulting users into a live digital universe. The technology has been heralded as an avenue to enable users to work, play, and stay connected with others across a range of functions. In the metaverse, it will be entirely possible to attend concerts, host international business meetings in your living room, and go shopping at Walmart in an entirely virtual space.
Matthew Ball, managing partner of venture capital firm Epyllion Industries, recently claimed that “we are on the cusp of the next internet,” when quantifying the potential that the metaverse holds, and the buzz surrounding the emerging technology appears to be spreading to Wall Street.
(Image: Korea JoonAng Daily)
As the data above shows, the metaverse market is estimated to accelerate to over $1.5 trillion by 2030 as the technology becomes more accessible later in the decade.
Because the technology supporting the metaverse is in its fledgling stages, investors are scouting out purchase opportunities among the stocks that could grow as adoption continues.
Maxim Manturov, head of investment research at Freedom Finance Europe notes that: “Mark Zuckerberg is betting that the metaverse will be the next big thing for Meta Systems stock. The company formerly known as Facebook changed its name to Meta in October, taking a name that is said to reflect the company’s ambitions beyond social media. “In our DNA, we are a company that creates technology to bring people together, and Meta is the next frontier, just like social media when we first started”, Zuckerberg said as part of the announcement. He announced that Meta will spend at least $10 billion in 2022 to create the virtual world of the meta universe, which he hopes will become the gold standard for games, social networking and virtual work environments.”
With this in mind, let’s take a deeper look at five high-potential metaverse stocks to invest in:
1. Advanced Micro Devices, Inc. (NASDAQ: AMD)
One of the most important stocks to explore when considering buys for the metaverse is that of companies that will aid the mechanics of its infrastructure. To support the growth of the metaverse, we must consider Advanced Micro Devices (AMD), which is a multinational semiconductor company that builds computer processors and related tech.
AMD’s 50 years of experience in the computing industry makes it a market leader, and the company’s innovative high-end computing, graphics and visualization technologies make it a key player in the future of the metaverse.
Over the past five years, AMD stock has grown an impressive 1,275%, and the company is currently in pole position to build the processors that will help to make the metaverse a reality over the coming years.
2. Matterport (NASDAQ: MTTR)
Matterport labels itself as the world’s “leading spatial data platform,” which is a pretty confident statement to make at the begging of the metaverse revolution. The company builds 3D models of physical spaces. Today Matterport typically displays physical spaces for sale or rent, manages construction jobs, and digitally captures unique spaces as part of its business model.
Its software can be adapted to smartphones, making its services far more accessible to smaller organisations, too.
Matterport’s technology makes the company a great candidate to deliver metaverse spatial representations, and the firm’s management acknowledges that the company has a $240 billion total addressable market for its technology.
However, higher operating expenses in recent months has led to Matterport making $177 in losses across the first three quarters of 2021. Although this is an indicator of higher risk, the stock’s discounted price may represent a buy opportunity to investors who believe in the company’s potential as a major player in the development of the metaverse.
3. Meta Platforms Inc. (NASDAQ: FB)
The artist is formerly known as Facebook. Mark Zuckerberg is such a firm believer in the potential of the metaverse, he rebranded his company to Meta in acknowledgement.
As a key member of the high performing FAANG collective of leading growth stocks, Meta must be regarded as a highly safe metaverse investment. The firm promises to go all in on the metaverse, investing billions of dollars in developing accommodating technology over the course of the decade.
Movements are already underway for Meta, and on the 9th December 2021, the company opened its VR space, Horizon Worlds as a free service in which users can play a laser tag game called Arena Clash in a virtual space. With the prospect of more game developers accessing the tools needed to create their own titles within Horizon Worlds, it’s likely that Meta will become a metaverse trailblazer during the technology’s fledgling years.
4. Intel Corporation (NASDAQ: INTC)
Another stock that made major inroads towards the metaverse in December 2021 was Intel, with management highlighting that the new frontier may be the “next major transition in computing” where participants could “communicate, collaborate, learn and sustain” their lives.
Intel is another example of one of the companies that may be required to deliver the computing power needed to run the metaverse. The necessity of hyperscale data centers capable of supporting inordinate workloads as adoption rolls out will be seismic. In fact, it’s been estimated that spending on hyperscale data centers may increase by 30% in 2022 alone.
This puts Intel in a key position to take advantage of this infrastructural need could cause its stock to break out from a range that the stock has been sat in since early 2018.
5. Microsoft Corporation (NASDAQ: MSFT)
One company with the resources to compete with Meta in the early development of the metaverse is Microsoft.
In a recent interview with Harvard Business Review, Microsoft CEO Satya Nadella said that she believes “that this entire idea of metaverse is fundamentally this: Increasingly, as we embed computing in the real world, you can even embed the real world in computing,”
Nadella notes that the metaverse could carry a far greater impact on society than the internet itself, with the potential to change the way that professionals meet, collaborate and interact with one another in an online space. Face-to-face meetings may soon give way to the use of integrated avatars or holograms in which Microsoft’s HoloLens may gain an entirely new market.
Microsoft’s Xbox games consoles are likely to offer integration with the metaverse in the future too, opening the door to far greater functionality.
Although it may still be many more years until we’re collaborating with our colleagues as holograms in virtual meeting rooms, many public companies are hard at work in building functioning products for the metaverse — offering plenty of investment opportunities for investors along the way.
Buying into the Metaverse: 5 High-Potential Metaverse Stocks to Invest in was originally published in Level Up Coding on Medium, where people are continuing the conversation by highlighting and responding to this story.
This content originally appeared on Level Up Coding - Medium and was authored by Dmytro Spilka
Dmytro Spilka | Sciencx (2022-01-20T12:10:41+00:00) Buying into the Metaverse: 5 High-Potential Metaverse Stocks to Invest in. Retrieved from https://www.scien.cx/2022/01/20/buying-into-the-metaverse-5-high-potential-metaverse-stocks-to-invest-in/
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