A somewhat controversial concept, metaverse stocks to buy presents both opportunities and pitfalls. Still, with so much money being poured into the digital ecosystem – which is broadly defined as a network of shared, immersive virtual worlds where people can connect with each other – it’s worth keeping this sector on your radar.
Fundamentally, there could be a lot of money involved here, which drives the case for metaverse stocks to buy. According to Precedence Research, the industry accounted for $92.46 billion last year. Experts project that the ecosystem could expand at a compound annual growth rate (CAGR) of 50.2% from 2024 to 2033.
At the culmination point, this next-generation connectivity canvas could be worth nearly $5.03 trillion. That’s a valuation that companies can’t ignore. With that, below are intriguing ideas for metaverse stocks to buy.
Meta Platforms (META)
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Whenever the subject pivots to metaverse stocks to buy, I suppose it would be criminal not to mention Meta Platforms (NASDAQ:META). After all, the company was long known as Facebook, the world’s biggest social media network. So, it was a risk changing the corporate name – one tied to a network of over 3 billion monthly active users – to Meta Platforms. Looking at its 52-week performance, it’s working.
Fundamentally, Meta is well positioned to advantage the developments inherent in this new wave of connectivity. As stated earlier, it leverages the Facebook network. Beyond that, the company has also invested heavily in virtual reality (VR) hardware. So, as more people connect to the metaverse as experts project, Meta would be in line to help customers make the transition.
You also can’t argue with the operational statistics. Last fiscal year, Meta beat bottom-line targets four times out of four. The average positive earnings surprise came out to 9.83%. For the current fiscal year, analysts believe that earnings per share will hit $18.33. That’s a massive leap from 2023’s result of $13.69.
Still, who’s going to doubt Mark Zuckerberg and company? Meta’s one of the metaverse stocks to buy.
Microsoft (MSFT)
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One of the biggest tech firms in the world, Microsoft (NASDAQ:MSFT) specializes in a variety of innovations. Arguably, it’s best known for its software solutions, particularly its Productivity and Business Processes segment. This is the unit responsible for the Microsoft 365 consumer subscription along with other compelling solutions like Microsoft Teams. Should the business world adopt the metaverse, MSFT may swing significantly higher.
Fundamentally, Microsoft represents a huge player in cloud computing. Therefore, the underlying connectivity protocol of the metaverse should yield natural synergies. More importantly, the tech giant has also invested in “experiential” hardware; specifically augmented reality (AR). With its AR headset, Microsoft can not only tap into the gaming world but also in the professional realm. Many industries could benefit from virtual training platforms which Microsoft could readily provide.
As with Meta Platforms, you can’t argue against the operational performance undergirding MSFT stock. Last fiscal year, the tech firm generated a positive earnings surprise of 8.43%. For the current fiscal year, analysts anticipate EPS of $10.73. That’s noticeably above last year’s print of $9.81, making MSFT one of the compelling metaverse stocks to buy.
Roblox (RBLX)
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A fun market idea for those who believe in the future of connectivity, Roblox (NYSE:RBLX) develops and operates an online entertainment platform. Per its corporate profile, the company offers Roblox Studio, a free toolset that allows developers and creators to build, publish and operate 3D experiences and other content. Also, it provides Roblox Client, an application that allows users to explore 3D experience.
To be frank, I’m not really privy to the Roblox ecosystem. So, here’s what ChatGPT has to say about it:
Overall, Roblox serves as a prime example of a metaverse-like platform, offering users the opportunity to create, explore, and connect within a dynamic virtual environment. Its user-generated content, social features, virtual economy, accessibility, and persistent universe all align with the core principles of the metaverse concept.
While that might sound whimsical to some investors, I must respect Roblox’s second-half performance. Its positive earnings surprise during this period came out to 8.65%. For fiscal 2024, analysts project revenue to hit $4.1 billion. That would be up 16.3% from last year’s print of $3.52 billion. For speculators, RBLX could be one of the metaverse stocks to buy.
On the date of publication, Josh Enomoto 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.