Not everybody’s a fan of the metaverse, we get it. That doesn’t change the fact that metaverse stocks are one of the most predicted high-growth assets of the century. Even bankers agree, with Goldman Sachs forecasting that around 15-33% of digital transactions will eventually switch to the metaverse. Citigroup also predicts that the combined market value of metaverses will reach up to $13 trillion by 2030.
Not that investors need convincing. Big businesses are unfazed by skepticism and have already opened their billion-dollar war chests. Over $120 billion have been invested by global companies into digital universes (including metaverse stocks and crypto-based assets), according to McKinsey & Company, as of May 2022.
These investments and predictions alone aren’t a solid determining factor of success. But the inflow of capital plus attention from developers would offer a significant foundation for the progression of virtual worlds, where future innovations can stand. Many who have tried these virtual spaces are convinced that “this is inevitable”. They might have tons of shortcomings today, but as long as they get better over time, metaverses will one day be part of our daily lives.
This makes the companies playing a massive role in developing relevant technologies for the metaverse and expanding virtual assets quite appealing to investors. Despite their varying roles and capacities, their collective initiatives can fortify the foundations of the emerging virtual universe.
And this offer investors with a wide-open opportunity to buy shares of companies that can potentially drive the metaverse forward. Just remember to do more comprehensive research before putting money in. Here is a list of the top ten global metaverse-related companies whose shares are publicly traded.
Roblox (RBLX)
Roblox is a free-to-play (f2p) virtual gaming and game creation platform where players can either create games or play with the ones made by others. The hit “imagination platform” is developed by the Roblox Corporation and currently boasts 54.1 million daily active users in the first quarter of 2022. Last 2021, the company posted annual revenue of $1.9 billion, higher than the previous year’s $924 million.
It generates most of its revenue from its virtual currency called “Robux,” which players use to buy games and other digital items within the Roblox ecosystem. One of its main appeals is its game creation system, where players can easily create games without coding and earn from them through features and in-game items.
Roblox is not a single game but a rich virtual world; some would argue that it is the closest thing to a metaverse today. Its players are typically aged 13 years old and above. If Roblox can keep its vast user base for years, it can support players that will soon have more control over their money and purchasing decisions. As long as it keeps its users engaged for years, Roblox is likely to retain a healthy economy and a steady stream of revenues with or without a full-blown metaverse push.
Microsoft (MSFT)
Microsoft is the world’s largest vendor of software products and also one of the global leaders in gaming hardware, video gaming, and cloud computing. The tech juggernaut achieved annual revenue of $168 billion last 2021 and is currently the 12th largest company in the world with over $2 trillion in market valuation.
Like any other big tech company, it also intends to venture into the metaverse and has recently made significant moves to secure its footing. Under Microsoft’s metaverse belt is its “Mesh for Teams,” a platform that will bring users of Microsoft Teams (a digital working space app) into a mixed reality virtual space. HoloLens, meanwhile, is its mixed reality (MR) hardware arm, which manufactures state-of-the-art MR and AR smartglasses.
Microsoft has also purchased Activision Blizzard (ATVI), currently the world’s biggest gaming company. The deal has pushed Microsoft into the third largest gaming company in the world (by revenue), only after China’s Tencent and Japan’s Sony. This acquisition offers the company access to Activision’s most successful gaming titles, including Call of Duty, World of Warcraft, and Candy Crush.
Through its acquisitions and development, Microsoft already has assembled the critical pieces of a potentially successful metaverse. But the synergy of these products/services and the company’s execution of its mega project would still determine its success.
NVIDIA (NVDA)
NVIDIA is a global chip manufacturing company and the credited inventor of graphical processing units (GPUs), a specialized processor to boost graphics rendering. It manufactures graphic chips for workstations, laptops, personal computers, mobile phones, and other devices. The chip giant is currently ranked 134th in Fortune 500’s most valuable companies. In its 2022 fiscal year, it posted a revenue of $26.91 billion, higher than 2021’s $16.68 billion.
NVIDIA is in a solid position to venture into the metaverse arena as the software universe runs on high-performing hardware, an area in which the company specializes. But it also has a solid software presence, which has immense potential for the metaverse.
It is the creator of Omniverse, a powerful collaboration platform for 3D simulations. It has also developed the Omniverse Avatar, which can create advanced digital assistants with artificial intelligence (AI-) powered speech, simulation technology, and natural language understanding.
Meta Platforms (META)
Meta Platforms owns some of the world’s largest social media platforms, such as Facebook, Instagram, and WhatsApp. It also owns Oculus VR, a manufacturer of advanced virtual reality (VR) headsets. It was formerly known as Facebook Inc but rebranded itself as Meta Platforms last October 2021 to reflect the company’s pivot to the metaverse business. The rebranding is hard to consider as a mere marketing ploy as the company has actual assets and resources to transition into metaverse-related ventures seriously.
First, it has already acquired Oculus VR, now ranked as the 3rd biggest VR company in the world, giving Meta a crucial advantage since VR headsets are the main gateway between metaverse and consumers. Second, Facebook and all the big social media platforms it has acquired boast a combined monthly userbase of 3 billion people. These two assets alone give Meta a massive and solid metaverse head start, giving it a huge potential to become successful in this emerging field.
Match (MTCH)
Match Group is a technology company that operates various online dating platforms such as Tinder, Match, Pairs, OkCupid, PlentyofFish, and more. In Q1 2022, it posted 16.3 million paid users, which generated $798.6 million in revenue for the company.
The dating giant plans to roll out a virtual environment for the world’s singles, potentially changing the nature of online dating forever. This planned venture would involve a VR headset, allowing matched people to interact in a digital space more immersively. Instead of mere chatting and video calling, they can play VR games, which can be more fun and stimulating. This is arguably a better way of determining online compatibility than today’s traditional virtual means.
Unity (U)
Unity is a video game software company that equips developers with powerful tools such as 2D/3D game engine to create real-time 3D experiences for different devices, including PCs, smartphones, and AR/VR headsets.
Through its tools, developers can utilize user-friendly advanced tools that can help them monetize their creations. Its software also powers architecture, engineering, military, and film projects, among other critical ventures. The real-time 3D (RT3D) giant posted a revenue of $1.1 billion last 2021 and a fresh $320.1 million in earnings for the first quarter of 2022.
Unity is currently making significant moves to venture into the metaverse. Last January, it collaborated with automotive manufacturer Hyundai Motors to create a 3D digital-twin factory called Meta-Factory. The project will test advanced features such as AI training, autonomous driving simulation, and smart manufacturing.
To further expand its metaverse footprint, it has also partnered with Gala Games and The Sims City creator, Will Wright. Their collaboration aims to develop the VOXverse, Gala Games’ $20 million initiative to create its metaverse, which will fully use Unity’s advanced 3D development tools.
Cloudflare (NET)
Cloudflare is a provider of edge computing technology, a service used by websites to deliver their content anywhere in the world in the fastest way possible. The company has a geographically distributed group of servers to bring data closer to different continents and reduce website content delivery time.
Cloudflare offers benefits such as reduced loading times, lower bandwidth costs, increased content availability, and website security. It has posted a 2021 revenue of $656.4 million and a fresh $212.2 million for the first quarter of 2022. With its ability to process and deliver massive amounts of data in a fast and cost-friendly way, Cloudflare’s edge computing has a high potential to play a significant role in the emergence of virtual environments.
Furthermore, it currently has a massive network covering 250 cities in over 100 countries worldwide, making it a true content delivery powerhouse.
Autodesk (ADSK)
Autodesk is a software design company that offers software products and services for the construction, engineering, architecture, and manufacturing industries. It also has a software presence in the entertainment, media, and education fields. It’s Fourth Quarter Fiscal 2022 report posted revenue of $1.21 billion, generated mainly by its subscription and maintenance plans and other digital offerings.
To kick start its metaverse venture, Autodesk has acquired an extended reality (XR) software developer called The Wild. This acquisition, plus Autodesk’s years of experience and dominance in 3D creation, can make it a strong contender in the expanding metaverse arena.
The Wild offers a digital experience quite different from AR, VR, and MR. Its advanced XR technology targets architectural engineering and construction (AEC) professionals and aims to offer them a metaverse-like environment. Indeed, The Wild perfectly fits Autodesk’s existing business and future metaverse plans.
Animoca Brands (AB1)
Animoca Brands is a game software and venture capital company that develops blockchain and traditional games. The Sandbox, a highly popular decentralized virtual world developed for the Ethereum blockchain, is included in its extensive portfolio. The company’s other main businesses include Grease Monkey Games, nWay, Blowfish Studios, and GAMEE.
Animoca has over $1.5 billion worth of assets in its portfolio from 340 investments, including cryptocurrencies like BTC, ETH, USDC, and USDT. It also invests in OpenSea, Yuga Labs (makers of the Bored Ape Yacht Club), Dapper Labs, ApeCoin, Yield Guild Games, and Axie Infinity. The company has a massive pool of reserves composed of liquid cash, digital assets, and holdings, which, combined with its portfolio, has a total value of $5.7 billion. This is why buying AB1 shares is akin to buying multiple metaverse and gaming projects.
The platform currently has three significant achievements in the metaverse arena. First is its collaboration with Yuga Labs to create the “Otherside,” an ambitious metaverse project for BAYC. Second is its successful virtual real estate offering for its Phantom Galaxies blockchain game, which has raised $19 million in private sales.
The third is HSBC’s collaboration with The Sandbox, which led to the banking giant’s purchase of NFT land in the metaverse platform. Through this purchase, HSBC aims to turn its virtual land into a hub for exciting activities, including e-sports. Other major names have also partnered with The Sandbox, including Adidas, Gucci, and Warner Music Group.
Matterport (MTTR)
Matterport is an AI-powered tool that creates high-definition 3D twins of any environment, turning them into explorable and customizable virtual spaces for users. Think of Matterport as Google Street View, but so much better. It uses special 3D and 360-degree cameras and a mobile app to generate accurate virtual models. Matterport can be used for real estate, travel and hospitality, photography, and design, making it a critical tool for multiple industries.
It currently has 562,000 subscribers and has already created 7.3 million digital twins of infrastructures in 177 countries. In 2021, Matterport posted an annualized recurring revenue (ARR) of $66.1 million and a fresh $28.5 million in earnings for the first quarter of 2022.
Its ability to convert any environment into 3D spaces can soon play a huge role in developing Earth’s twin in digital form. Another exciting possibility is the emergence of “metaverse tourism,” where you can visit famous tourist spots’ accurate metaverse versions and even buy digital souvenirs using your avatars!
Last year, Facebook AI Research (FAIR), now called Meta AI Research, collaborated with Matterport. This deal is basically a collaboration between Meta’s “Habitat” AI and Matterport’s “Cortex” AI. The goal of this partnership was to feed Habitat with Cortex’s millions of rich infrastructure data to help Meta train AI assistants that run on robots, AR glasses, and other devices. But since Meta CEO Mark Zuckerberg also has ambitious plans for the metaverse, these data may also power the creation of more accurate and realistic 3D spaces faster and better.
These are the top metaverse stocks that we think will do well over time. Remember to always do your own research and invest wisely. You alone control your financial future.
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