You hear more and more about the “Metaverse,” and this virtual world is about to revolutionize the exchanges between us. Some companies specialize in this sector and invest massively to create this digitalized world.
Find our analysis of 4 stocks with high potential in the Metaverse to eventually invest in this field in this article.
What is the Metaverse?
The word Metaverse is the combination of the English words “meta” and “universe,” which could be translated as “beyond the universe.” The Metaverse presents a virtual and fictional world in which users evolve in 3D in the form of an avatar. The conditions of use are developing every day, which include playing, working, meeting people, buying art, shopping, buying houses, and watching concerts. Everything seems possible in the virtual world, even beyond our imagination.
The Metaverse is scalable and could one day allow you to visit your loved ones virtually or work in a digital open space from home. This will undoubtedly have an impact on our natural world. However, the speed of adoption of this tool is obviously not predictable. Metaverse startups have raised more than $6 billion since 2022. Consulting firm McKinsey & Co estimates that the Metaverse market could reach $5 trillion by 2030.
Meta Platforms stock (Facebook)
The company, run by Mark Zuckerberg, formerly Facebook, was renamed Meta Platforms in October 2021, a logical move given the company’s choice to invest heavily in the Metaverse. Meta Platforms retains its diversified social network portfolio with Facebook, Instagram, and WhatsApp. But back in 2014, Facebook seemed to turn toward a digital parallel universe by acquiring virtual reality startup Oculus.
The acquisition of this company, which became Meta Quest, was already a testament at the time to Facebook’s vision, which turned into the Metaverse. 2021 saw the birth of an application for Oculus headsets that allows people to participate in virtual work meetings (almost) in person. The goal is to feel like you are in a space with someone else.
Nvidia is a leading company in artificial intelligence, video games, and autonomous vehicles. It is also a specialist in developing graphics processors for video games and virtual reality platforms. These are the electronic components that allow all these platforms to function.
Moreover, in 2019, Nvidia created the Omniverse platform, which, among other things, allows developers to model physical objects virtually, as well as to generate collaboration between all these projects.
Through its projects and customers invested in the Metaverse, Nvidia is therefore involved in the virtual world on several levels. Moreover, Nvidia’s stock has risen sharply since the Covid crisis in 2020. We can see that investors have confidence in this company.
Roblox is a video game released in 2005 aimed at children and teenagers. Users can create their own games, such as obstacle courses, escape, or simulation games. These players can modify their character (avatar) in the game by buying objects, accessories, or other customization items. Visitors or other players can visit the fun of the different creators.
Adults may not be familiar with Roblox, but young people are more familiar with this video game. More than 200 million users each month are regularly connected to it. The video game sector is not to be neglected when we know the global turnover generated by this sector.
The video game industry alone reached nearly $175 billion in 2020, while the film and music industries capitalized less than $33 billion. Born in 2005, Roblox has a head start on its direct competitors, which could benefit this company when the Metaverse explodes.
Roundhill Ball Metaverse ETF
This is not a stock but an ETF composed of a panel of different companies linked to the Metaverse. This American ETF, whose ticker is METV, is unavailable for European clients. Still, there are other ways to access it. Firstly, it is possible to go through the options market as options are available to Europeans.
However, the options market is a complex market for novice investors. The second and more straightforward solution is to go to the website of www.tradequo.com. This way, we can discover in detail the composition of the metaverse stocks, which are regularly updated.