Top 5 Metaverse Stocks You Need Now
November 18, 2021
The internet is about to go meta.
The metaverse — a virtual world that blends reality and digital technology — is one of the hottest topics today. Companies are lining up to develop this new online universe where you can play, create, and even shop.
And as you can imagine, the potential for early-in investors is huge.
While it might take a few years before the world embraces the metaverse, there are many ways you can start profiting today.
To help you begin, we’ve compiled this list of the top five metaverse stocks you need now.
Nvidia (NVDA) is primed to benefit from the rise of the metaverse. In fact, the company has already made forays into this futuristic technology.
In April, Nvidia officially launched the Omniverse, an open platform that hosts virtual collaboration and real-time simulation. The company had been developing and beta-testing this digital universe since 2019.
Omniverse users can use the platform to build 3D simulations to test and design products and systems. And real-time simulations let folks around the world collaborate on multiple projects.
As you might have guessed, the Nvidia Omniverse is more about getting work done than goofing off with virtual friends. Already, some big-name companies — including BMW and Siemens Energy — have started incorporating it into their workflows.
In addition, Nvidia’s graphics processing units (GPUs) are top-notch. As more consumers enter the metaverse, they’ll need these GPUs to power their new virtual-reality world.
Nvidia recently announced it would purchase Arm Holdings — a company that designs high-powered computer processors and other chips. Arm is also concerned with the software that allows these chips to be integrated into computer systems. When the deal comes through, Nvidia will be able to directly get its GPUs into more systems.
But even if the Arm Holdings deal crumbles, there’s still loads of potential with Nvidia.
On top of being a metaverse no-brainer play, Nvidia’s been making great strides in artificial intelligence (AI) and other hot tech trends. It’s even working on self-driving car technology.
Hands down, Nvidia is one of the best plays to take advantage of the upcoming metaverse.
One of the key elements of the metaverse is real time. The slightest delay, or lag, can screw up the whole experience. After all, the point is to make this digital reality as realistic as possible.
In addition, metaverse business transactions will depend on real-time communication and money transfers. When money’s on the line, there’s no time for latency.
Of course, eliminating lag is no easy feat when tons of data needs to be transferred. And believe us, the metaverse will require tons of data.
That’s where Fastly (FLSY) comes in. As its name implies, this company moves data… well… fastly-er.
Fastly’s top product is an edge computing platform that connects servers to the source of the data.
Edge computing involves computing data near its source geographically. This way, you can cut the lag you’d naturally see when relying on the cloud and data centers somewhere “out there.”
As a result, Fastly has been able to consistently move 167 terabytes of data per second across dozens of countries. That’s very fast.
The future of computing is going to depend on services like Fastly’s to keep real-time, virtual transactions moving smoothly. That’s why we think it’s a top pick for getting in at the ground floor of the metaverse.
3. Meta Platforms
OK, so first off, we’ll need to move past the controversy surrounding Meta Platforms (FB), the company formerly known as Facebook. The company is by no means new to scandal. It’s even received one of the largest fines ever levied by the U.S. Federal Trade Commission (FTC) — $5 billion.
So we think Meta will be able to push through the headwinds it’s currently facing.
And when we talk about the metaverse, it’s impossible not to think of Mark Zuckerberg’s enterprise. Heck, the company even changed its name to reflect this new focus.
Meta has been paving the way for the metaverse since 2014, when the company purchased virtual-reality startup Oculus.
Like Nvidia, Meta has been looking into workplace applications for metaverse-like technology. The company recently launched an app called Horizon Workrooms that lets users attend virtual meetings through their Oculus headsets.
But Meta’s vision of the metaverse isn’t limited strictly to getting work done.
Zuckerberg has described the metaverse as a “social, 3D virtual space where you can share immersive experiences with other people, even when you can’t be together in person — and do things together you couldn’t do in the physical world.”
Meta plans to continue making big investments into VR and augmented reality (AR) technologies. The company has already announced it will hire 10,000 new employees for its European offices that will work solely on metaverse developments.
Every metaverse-themed portfolio needs at least a few shares of Meta inside it.
Besides spaces for work and play, the companies developing the metaverse envision the virtual universe as having its own economy.
In the metaverse, you’ll be able to shop for goods (real and virtual), pay for services, and maybe even do some investing.
And none of that is going to happen if there’s no way to handle online transactions.
Shopify (SHOP) is one of the biggest names in e-commerce today. It started out as a way for small businesses to sell goods and services online. Fast-forward to today, when Shopify provides complete e-commerce solutions to companies of all sizes.
Shopify has already made moves into the metaverse space.
First, it acquired augmented reality (AR) app Primer.
Primer’s specialty is technology that helps users envision digital materials in actual spaces. (For example, an interior designer can use the app to see what a particular textured wallpaper would look like in a room.)
The second metaverse move that Shopify has made is the launch of a nonfungible token (NFT) platform where creators can sell digital art directly to buyers.
Both developments are poised to help Shopify become an e-commerce leader in the metaverse.
Now, a quick note about this stock: At more than $1,600 per share as we write, it’s the most expensive on this list. Still, we think there is plenty of room for Shopify to grow. Watch out for dips in price to grab shares (or fractional shares) of the stock.
OK, we didn’t add this one to the list just because our kids are big fans of this game app.
In reality, Roblox (RBLX) is already leading the charge to the metaverse.
Roblox is an online platform where users can play and even create games. It’s free to use, but Roblox players can make transactions using a virtual currency called Robux.
More than 40 million active users log into Roblox on a daily basis. In fact, it’s estimated that more than half of all U.S. kids under the age of 16 have a Roblox account.
That’s not to say there aren’t plenty of adults who use Roblox regularly.
Roblox recently made headlines when it hosted an exclusive event for Italian luxury goods house Gucci. Along with a creative “Gucci garden” that Roblox users could explore, the event included the sale of virtual clothing and accessories for as much as hundreds of real dollars.
That kind of activity will be commonplace in the metaverse.
But there’s even more potential here. We wouldn’t be surprised to see Roblox hold further events such as live concerts (rival game Fortnite is already seeing success in this space) and esports competitions.
In a nutshell, the Roblox community is the stuff the metaverse will be built on. It could be a powerful pick for your portfolio.