Artificial intelligence (AI) has eclipsed the metaverse in prominence of late, but the fascination with virtual worlds remains potent. We saw how the metaverse is never out of the equation, with the release of Apple’s (NASDAQ:AAPL) Vision Pro and Forbes buying land in The Sandbox. Yet, amidst the excitement, the unfolding narrative is marked with uncertainty, which is why pinpointing the right metaverse stocks becomes imperative.
Moreover, the metaverse market is likely to reach a massive $74.4 billion in 2024 and a staggering $507.8 billion by 2030. The fusion of digital and physical realms promises unparalleled growth and ushers in a new era of boundless human connection. The thriving economy propels metaverse stocks, fostering investments in innovative technologies and virtual experiences. Positioned strategically, three metaverse stocks promise a smooth journey through the ongoing digital evolution.
Metaverse Stocks: Meta Platforms (META)
Meta Platforms (NASDAQ:META) is effectively spearheading the metaverse’s dynamic evolution on the back of its strategic focus on the development of virtual reality (VR) and augmented reality (AR) technologies. Most recently, its investments in Ray-Ban’s smart glasses and its popular Oculus VR headsets are a testament to its commitment to establishing the infrastructure for spatial computing. Moreover, with billions of users on apps like Facebook and Instagram, Meta is positioned to drive metaverse adoption extensively.
Financially, the company’s shares have skyrocketed by 182% in the last year. The recent financial disclosures further bolster Meta’s market position. Fourth-quarter GAAP earnings-per-share stood at $5.33, surpassing estimates by 39 cents. Additionally, a 24.7% year-over-year revenue upswing to $40.1 billion exceeded expectations by $940 million.
Furthermore, its hugely popular Meta Quest VR headset is a primary gateway to propelling users into immersive metaverse experiences. Despite facing competition from Apple’s Vision Pro, the Quest VR still maintains numerous advantages. Meta CEO Mark Zuckerberg emphasized Quest 3’s better value, comfort, wider field of view and more open app model compared to the Vision Pro. Consequently, TipRanks analysts assign a Strong Buy to Meta, foreseeing a possible 9% average upside, affirming the company’s promising market position.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) may not be the immediate thought, but it stands as one of the top secondary metaverse plays. In September last year, Microsoft unveiled ambitious metaverse plans, empowering organizations through HoloLens and Mesh for Teams. The groundbreaking initiative redefines collaborative creativity and work dynamics, offering engineers and designers unprecedented creative freedom to shape bespoke virtual worlds. Moreover, streaming Xbox games directly to the cloud enables users to play seamlessly on various devices, potentially enhancing metaverse experiences.
Therefore, reflecting on the past year, Microsoft’s shares have climbed by 61% in the last year. The company’s financial achievements further illustrate this success, with second-quarter GAAP earnings per share of $2.93, surpassing expectations by 16 cents, and a revenue surge to $62.02 billion, a 17.7% increase from the previous year, outdoing predictions by $890 million. Additionally, TipRanks analysts project a Strong Buy rating and a healthy 14% upside potential; Microsoft is poised for continued leadership and innovation in AI.
Nvidia (NVDA)
Pioneering the metaverse stock landscape, Nvidia (NASDAQ:NVDA) consistently redefines tech boundaries with its visionary expertise. That momentum continues with the launch of Omniverse Cloud Services, revolutionizing industrial metaverse applications and solidifying Nvidia’s innovation-driven leadership. Consequently, this bold move has skyrocketed Nvidia’s market value to an astonishing $2 trillion, surpassing giants such as Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).
In the fourth quarter, Nvidia reported robust non-GAAP earnings per share of $5.16, surpassing expectations by 52 cents. Revenue impressively stands at $22.1 billion, a remarkable annual bump of 265.3%, exceeding estimates by $1.55 billion. Additionally, its data center revenue hit a record, surging 409% from a year ago and up 27% sequentially.
Furthermore, its powerful GPU RTX technology enables professionals to craft metaverse experiences seamlessly with photorealistic graphics and accelerated AI. Moreover, TipRanks analysts strongly endorse Nvidia as a Strong Buy, projecting a solid 9% average upside potential.
On the date of publication, Muslim Farooque did not hold (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.
