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The metaverse is no longer a futuristic concept but a rapidly emerging realm that is set to revolutionize the way we interact, work, and play. As this virtual world unfolds, forward-thinking investors are presented with a unique opportunity to get in on the ground floor of what could be the biggest tech trend of the decade.

The metaverse economy is projected to reach a staggering value of $3.6 trillion per year by 2035, according to analysis by Meta, and this digital frontier is already attracting a host of big names and small startups alike. From social media giants to gaming companies and hardware manufacturers, the race to build the infrastructure and platforms of the metaverse is well and truly underway.

Key Takeaways:

• Roblox, Unity, and Meta provide gaming platforms, development tools, and social media communities, respectively, forming the backbone of the metaverse.
• Snap’s focus on AR and camera-based experiences, along with its AR smart glasses, makes it an early adopter and key player in the metaverse race.
• Disney’s extensive content library, media reach, and partnerships demonstrate its potential to create compelling metaverse experiences.
• Matterport’s unique approach to 3D data capture and digital twins offers a different angle for metaverse investment, focusing on the creation of immersive digital spaces.
• Qualcomm’s chips power many leading metaverse devices, and its technology is crucial for the

What is the Metaverse?

The metaverse refers to a shared, persistent virtual world that combines aspects of social media, gaming, augmented reality (AR), virtual reality (VR), and cryptocurrencies. It is a digital realm where users can interact, work, play, and even build their own virtual spaces. The term was first coined in Neal Stephenson’s 1992 novel “Snow Crash,” and it has since evolved into a broad concept encompassing various technologies and platforms.

Metaverse Market Growth:

• The global Metaverse market size is anticipated to grow from $83.9 billion in 2023 to $1,303.4 billion by 2030 at a CAGR of 48.0%. marketsandmarkets
• The Metaverse market worldwide is projected to grow by 37.73% from 2024-2030, resulting in a market volume of $507.8 billion in 2030. statista
• The global metaverse market size was valued at $92.46 billion in 2023 and it is estimated to surpass around $2,369.70 billion by 2033 with a registered CAGR of 38.31% during the forecast period 2024 to 2033. precedenceresearch
• The global metaverse market size was estimated at $65.5 billion in 2022 and is expected to grow at a CAGR of 41.6% from 2023 to 2030 to reach $936.6 billion by 2030. grandviewresearch
• The Global Metaverse Market Size was valued at $50.54 Billion in 2021 and is projected to grow to $626.65 Billion in 2030, at a CAGR of 45.2%. sphericalinsights

Performance Comparison of Top Metaverse Stocks

7 Best Metaverse Stocks to Buy in 2024

The companies we have listed are based on hedge fund interest, using data from Insider Monkey’s Q2 2024 report.

1. Roblox Corporation (RBLX)

Number of Hedge Fund Holders (Q2 2024): 54

Roblox is a gaming and game creation platform that has become incredibly popular, especially among younger generations. With over 71.5 million daily active users as of 2023, Roblox has a massive head start in the metaverse race. The company has created a virtual world where users can play, create, and monetize their games and experiences.

Roblox’s unique appeal lies in its ability to empower users to be creators. Anyone can build and share games (“experiences”) on the platform, and its intuitive development tools have given rise to a vast and diverse range of user-generated content. Roblox also has its own digital currency, Robux, which can be used to purchase in-game items and upgrades, providing a strong monetization model for both the company and its users.

According to insidermonkey, ARK Investment Management, led by Catherine D. Wood, holds 13.3 million shares of Roblox Corporation (RBLX), valued at $496.3 million.

Roblox’s Q1 2024 financial results show strong growth, with revenue up 22% year-over-year to $801.3 million and bookings increasing 19% to $923.8 million. The platform’s user engagement metrics are also impressive, with daily active users rising 17% to 77.7 million and hours engaged growing 15% to 16.7 billion. However, the company reported a net loss of $271.9 million.

Despite the loss, Roblox’s cash flow performance was robust. Net cash from operating activities increased 37% year-over-year to $238.9 million, while free cash flow saw a significant 133% jump to $191.1 million. The company maintains a strong liquidity position with $2.5 billion in net liquidity, indicating financial stability as it continues to invest in growth and platform development.

According to Wall Street Analyst on RBLX stock. Of the 32 analysts following the stock, 17 give it a Buy, 9 has it at Hold and 2 calls it a Sell.

Why We Picked Roblox:

• Massive User Base: Roblox has over 71.5 million daily active users as of 2023, giving it a significant head start in the metaverse race. This loyal community is highly engaged and continues to grow.
• User-Generated Content: Roblox allows users to create and monetize their own games and experiences, fostering creativity and providing a constant stream of fresh content.
• Strong Development Roadmap: Roblox has ambitious plans to enhance its platform, aiming for more complex simulations and online events, further blurring the lines between gaming and the metaverse.

2. Unity Software Inc. (U)

Number of Hedge Fund Holders (Q2 2024): 34

Unity is a leading provider of game development software, offering a comprehensive set of tools for creating interactive 2D and 3D content. While gaming is its primary market, Unity’s technology is also used in film, automotive, architecture, and engineering industries, showcasing its versatility.

As the metaverse gains traction, Unity’s tools will become even more important. The company’s software allows developers to create rich, immersive 3D experiences, and its real-time 3D rendering engine is already used by many metaverse platforms and game developers. Unity’s technology is also being used to build digital twins of real-world locations, further bridging the gap between the physical and digital worlds.

According to insidermonkey, Silver Lake Partners, founded by Jim Davidson, Dave Roux, and Glenn Hutchins, holds 34.7 million shares of Unity Software Inc. (U), valued at $564.8 million.

Unity Software’s Q1 2024 results show a mixed performance. Total revenue decreased 8% year-over-year to $460 million, primarily due to portfolio choices. However, revenue from the strategic portfolio grew 2% to $426 million, exceeding guidance. Create Solutions revenue from the strategic portfolio increased 17% to $133 million, driven by subscription growth and strategic partnerships. Grow Solutions revenue from the strategic portfolio declined 4% to $294 million, though improvements in the mediation platform and ad networks are underway.

The company reported a GAAP net loss of $291 million, which includes $212 million in restructuring costs and a $61 million gain from convertible note repurchases. Adjusted EBITDA improved by $50 million year-over-year to $79 million, reflecting the impact of portfolio and cost-saving measures. Unity’s non-strategic portfolio revenue declined significantly as expected, and the company anticipates further reductions in this area by year-end.

According to Wall Street Analyst on U stock. Of the 29 analysts following the stock, 10 give it a Buy, 15 has it at Hold and 3 calls it a Sell.

Why We Picked Unity Software:

• Versatile Development Tools: Unity’s software is not just for games; it is used in film, architecture, and engineering, showcasing the company’s ability to cater to a wide range of metaverse applications.
• Widespread Adoption: Unity’s technology is already widely adopted by developers, and its real-time 3D rendering engine is a key component in many metaverse platforms, making it a go-to choice for creators.
• AR Focus: With a strong focus on augmented reality, Unity is well-aligned with the growing demand for AR-enabled metaverse applications, bridging the physical and digital worlds.

3. Meta Platforms, Inc. (META)

Number of Hedge Fund Holders (Q2 2024): 223

Meta, the company formerly known as Facebook, needs little introduction. As one of the biggest social media companies in the world, Meta has already built a massive online community, and it is now betting big on the metaverse. The company has expressed its intention to shift from being a social media platform to a metaverse company, and it is putting its money where its mouth is.

Meta has made significant investments in VR and AR technology, including its Oculus VR headsets, which are among the most popular on the market. The company is also developing Horizon, its own metaverse platform, which will allow users to connect, play, and create in a shared virtual space. With its vast resources and existing user base, Meta is well-positioned to become a major player in the metaverse economy.

According to insidermonkey, Citadel Investment Group, led by Ken Griffin, holds 12.4 million shares of Meta Platforms, Inc. (META), valued at $6.3 billion.

Meta’s Q1 2024 results demonstrate strong performance across key metrics. Family daily active people increased 7% year-over-year to 3.24 billion, while ad impressions grew by 20%. Total revenue surged 27% to $36.46 billion, driven by a 6% increase in average price per ad. The company maintained cost discipline, with total expenses rising only 6% year-over-year to $22.64 billion.

Meta’s financial position remains robust, with $58.12 billion in cash and marketable securities. The company continued its significant capital return program, repurchasing $14.64 billion in shares and paying $1.27 billion in dividends. Free cash flow was impressive at $12.53 billion. Despite these strong results, Meta reduced its workforce by 10% year-over-year, ending the quarter with 69,329 employees, likely reflecting ongoing efficiency efforts.

According to Wall Street Analyst on META stock. Of the 66 analysts following the stock, 48 give it a Buy, 9 has it at Hold and 1 calls it a Sell.

Why We Picked Meta Platforms:

• Social Media Giant: Meta has built an extensive global community through its social media platforms, providing a ready-made user base for its metaverse ambitions.
• VR/AR Investments: Meta has made bold moves into VR and AR, with its popular Oculus VR headsets and Horizon metaverse platform, showcasing its commitment to this new virtual world.
• Immersive Advertising: Meta’s expertise in targeted advertising positions it well to capitalize on immersive advertising opportunities within the metaverse, a unique revenue stream.

4. Snap Inc. (SNAP)

Number of Hedge Fund Holders (Q2 2024): 44

Snap, the company behind the popular Snapchat app, has been an early and enthusiastic adopter of AR technology. With its fun and creative filters and lenses, Snap has already given users a taste of the potential of AR, and it is doubling down on this technology.

The company has released several versions of its Spectacles, AR-enabled smart glasses, and is investing in improving its AR capabilities. Snap’s unique approach to camera-based AR, which overlays digital content on the real world, has the potential to become a key feature of the metaverse. Its partnership with Verizon to co-develop AR experiences further highlights its commitment to this space.

According to insidermonkey, SRS Investment Management, led by Karthik Sarma, holds 72.7 million shares of Snap Inc. (SNAP), valued at $1.2 billion.

Snap Inc.’s Q1 2024 results show significant growth and engagement across its platform. Daily active users increased by 10% year-over-year to 422 million, with Spotlight content viewing time more than doubling. The Snap Star program drove engagement in North America, with story viewing time from Snap Stars up over 55%. Snapchat+ subscribers tripled, surpassing 9 million. The platform also introduced new creative tools, including AI-powered AR Lens creation, attracting more content creators and driving user engagement.

Snap’s advertising business showed strong momentum, with an 85% year-over-year increase in small and medium-sized advertisers. The company’s 7-0 Pixel Purchase optimization model led to a 75% increase in purchase-related conversions.

Snap also launched improved advertising tools, including an enhanced Conversions API and new AR ad offerings. Partnerships with measurement and research firms were established to provide advertisers with better campaign insights and brand safety solutions, demonstrating Snap’s commitment to improving its advertising ecosystem.

According to Wall Street Analyst on SNAP stock. Of the 42 analysts following the stock, 8 give it a Buy, 29 has it at Hold and 2 calls it a Sell.

Why We Picked Snap:

• Early AR Adopter: Snap has been at the forefront of AR with its fun and engaging filters and lenses, providing users with an early glimpse of the metaverse‘s capabilities.
• AR Smart Glasses: The company has released multiple versions of its Spectacles AR-enabled smart glasses, demonstrating its commitment to AR hardware and offering a unique perspective on metaverse devices.
• Advertising Revenue: Snap has a strong track record of monetizing its platform through advertising. Its innovative AR ads could become a key revenue stream as the metaverse evolves.

5. The Walt Disney Company (DIS)

Number of Hedge Fund Holders (Q2 2024): 95

Disney, the global media and entertainment conglomerate, is no stranger to immersive experiences. The company has a long history of creating captivating worlds and characters, and it is now exploring the metaverse as a new avenue to engage with its audience.

Roblox is regarded as a key platform for Disney to reach new audiences and license its content. Its Disney+ streaming service could also become a gateway to metaverse experiences, with interactive and immersive content based on its beloved franchises.

According to insidermonkey, Fisher Asset Management, led by Ken Fisher, holds 7.9 million shares of The Walt Disney Company (DIS), valued at $787.9 million.

The Walt Disney Company’s Q2 fiscal 2024 results show a slight increase in revenues to $22.1 billion. However, diluted earnings per share (EPS) turned to a nominal loss of $0.01, down from $0.69 in the prior-year quarter, primarily due to goodwill impairments. Excluding certain items, adjusted diluted EPS rose to $1.21 from $0.93.

Disney’s streaming services showed mixed results in average monthly revenue per paid subscriber. Domestic Disney+ saw a decrease from $8.15 to $8.00, while International Disney+ (excluding Hotstar) increased from $5.91 to $6.66. Disney+ Hotstar experienced a significant drop from $1.28 to $0.70.

Hulu’s performance was also mixed. Hulu SVOD Only average monthly revenue per subscriber decreased from $12.29 to $11.84, while Hulu Live TV + SVOD increased from $93.61 to $95.01. These fluctuations were primarily driven by changes in retail pricing, advertising revenue, and subscriber mix across various offerings.

According to Wall Street Analyst on DIS stock. Of the 34 analysts following the stock, 19 give it a Buy, 10 has it at Hold and 1 calls it a Sell.

Why We Picked Walt Disney:

• Content and IP: Disney has a treasure trove of content and intellectual property, providing a strong foundation for creating compelling metaverse experiences, attractions, and partnerships.
• Media Conglomerate: As a global media powerhouse, Disney has the resources and reach to explore the metaverse through its streaming services, theme parks, and collaborations with leading metaverse platforms.
• Roblox and Unity Partnerships: Disney has already partnered with Roblox and Unity to create virtual experiences, demonstrating its proactive approach to engaging with this new technology.

6. Matterport Inc. (MTTR)

Number of Hedge Fund Holders (Q2 2024): 25

Matterport is a unique company that provides an end-to-end platform for creating and navigating immersive digital twins of real-world spaces. Its technology uses a combination of 3D capture devices, cloud processing, and AI to create highly detailed and interactive digital representations of physical locations. This intersection of spatial computing and artificial intelligence showcases the potential for innovative applications in the metaverse.

The company’s digital twins can be used for a range of applications, from virtual tours of real estate properties to training simulations and remote collaboration. Matterport’s technology is already being used by major companies, including Walmart and Jones Lang LaSalle (JLL), to create metaverse-like experiences.

According to insidermonkey, Magnetar Capital, founded by Alec Litowitz and Ross Laser, holds 6.2 million shares of Matterport Inc. (MTTR), valued at $27.6 million.

Matterport’s Q1 2024 results demonstrate strong growth across key metrics. Total subscribers reached 1 million, up 30% year-over-year, while square feet under management increased 35% to 40.7 billion. Subscription revenue grew 21% to $24 million, and the company improved its net loss per share by 33%. Notably, Matterport significantly reduced cash used in operating activities by 81% year-over-year.

The company announced several strategic partnerships and milestones, including agreements with Crunch Fitness, Kikkoman Corporation, and ARTOGO. Matterport also reached one million subscribers to its digital twin cloud platform. Perhaps most significantly, the company disclosed that it has entered into a definitive agreement to be acquired by the CoStar Group, potentially marking a new chapter in Matterport’s development.

According to Wall Street Analyst on MTTR stock. Of the 2 analysts following the stock, 2 has it at Hold.

Why We Picked Matterport:

• 3D Data and Digital Twins: Matterport’s technology captures highly detailed 3D data to create immersive digital twins of physical spaces, applicable across various industries.
• Data-Centric: The company’s focus on data collection and processing gives it a competitive advantage, and its vast 3D data can support the development of the metaverse and enhance its applications.
• Wide Applicability: Matterport’s platform is used in real estate, retail, and remote collaboration, showcasing its versatility and providing a range of use cases for its metaverse-related technology.

7. Qualcomm Incorporated (QCOM)

Number of Hedge Fund Holders (Q2 2024): 100

Qualcomm is a leader in wireless technology and a key player in the semiconductor industry. The company designs and manufactures chips that power many of the leading smartphones and VR/AR headsets on the market, including the Oculus Quest 2. Qualcomm’s role in producing components for virtual reality devices positions it as a key player in the metaverse hardware space.

As the demand for metaverse devices and experiences grows, Qualcomm is poised to benefit significantly. Its chips are already a key component in many metaverse platforms and devices, and its expertise in wireless connectivity and power-efficient processing will be crucial for the development of more advanced metaverse hardware.

According to insidermonkey, Matrix Capital Management, founded by David Goel and Paul Ferri, holds 10 million shares of Qualcomm Incorporated (QCOM), valued at $1.99 billion.

Qualcomm’s Q2 fiscal 2024 results show revenues of $9.4 billion, with GAAP EPS at $2.06 and non-GAAP EPS at $2.44. The company returned $1.6 billion to stockholders through dividends and share repurchases.

QCT segment revenues grew 1% year-over-year to $8.026 billion. Handsets and Automotive revenue streams saw growth, with Automotive showing a significant 35% increase. However, IoT revenues declined by 11% compared to the previous year.

According to Wall Street Analyst on QCOM stock. Of the 39 analysts following the stock, 17 give it a Buy, 13 has it at Hold and 1 calls it a Sell.

Why We Picked Qualcomm:

• Semiconductor Leader: Qualcomm designs and manufactures chips that power many leading metaverse devices, including VR/AR headsets. Its technology is essential for the development of more advanced and accessible metaverse hardware.
• XR Glasses: Qualcomm’s technology is being used in extended reality (XR) glasses, which could become a more mainstream gateway to the metaverse, broadening its reach.
• Strong Partnerships: The company has established relationships with major device manufacturers, positioning it as a key provider of chips for metaverse devices and a trusted partner in this emerging space.

How to Invest in the Metaverse

Want to put money into the metaverse? Start by learning about Metaverse ETFs and buying individual stocks.

Consider a Metaverse ETF

Investing in a Metaverse ETF offers broad exposure to top companies leading in virtual reality, augmented reality, and digital assets. The Roundhill Ball Metaverse ETF has an expense ratio of 0.59% and is the world’s largest metaverse fund.

It aims to track the performance of the Ball Metaverse Index, making it a preferred choice for many investors.

The Global X Metaverse ETF covers various industries within the metaverse sector, from gaming to blockchain technology. For those focusing on ethical investing, the Fidelity Metaverse UCITS ETF emphasizes stocks that align with social and environmental values alongside their metaversal contributions.

This provides a diverse range of options for investors wanting to spread out risks and capitalize on multiple growth areas within the digital economy.

Choosing a Metaverse ETF simplifies investment decisions by pooling resources into several leading companies without having to pick individual stocks. Each fund listed focuses on innovation and market leadership across different segments related to the metaverse, offering pathways for potential financial gains as this new internet frontier expands.

Buy Individual Metaverse Stocks

Choosing individual metaverse stocks instead of an ETF lets investors focus on companies they think will lead in the digital world. Look for firms with strong tech, growth in revenue, and a big share of their market.

People can pick from top names like Meta Platforms, Roblox Corporation, and NVIDIA Corporation. They have been marked by Wall Street as key players.

Investors should check how these companies do over time. Stocks like Microsoft and Apple also dive into virtual reality and online gaming. This makes them good choices for those wanting to get into tech stocks.

Conclusion

Looking at the top 7 metaverse stocks for your investment portfolio in 2024 makes sense. These picks—Meta Platforms, Roblox, and others—offer a blend of hardware, software, and AI innovation. For investors seeking to diversify beyond tech, exploring oil stocks could provide balance to a metaverse-heavy portfolio.

They cater to dynamic virtual environments. With rapid tech advances and market interest, these stocks show promise. Investing now could tap into future growth trends.

FAQs

1. What are metaverse stocks?

Metaverse stocks represent companies involved in creating or supporting the metaverse, a virtual reality space where users can interact with a computer-generated environment and other users. These include tech giants like Meta Platforms (Meta) and Microsoft (MSFT), gaming companies like Roblox Corp. (RBLX), and technology providers like NVIDIA (NVDA).

2. Why should I consider buying metaverse stocks?

Investing in metaverse stocks could be wise because the metaverse is expected to grow significantly. Companies such as Unity Software (U) and Taiwan Semiconductor Manufacturing Company Limited (TSMC) are key players in this space, developing technologies that power the metaverse infrastructure.

3. How do I choose which metaverse stock to buy?

Look for companies with strong growth potential in the metaverse sector, such as those developing virtual reality products like Apple Vision Pro or involved in content delivery networks like Cloudflare (NET). Also, consider diversifying through exchange-traded funds (ETFs) focused on the metaverse, like Roundhill Ball Metaverse ETF (METV).

4. Can generative AI impact my investment in metaverse stocks?

Yes! Generative AI plays a crucial role by enhancing user experiences within the Metaverses—creating more realistic environments or personalized interactions—which can boost the appeal of platforms developed by Meta Platforms or Microsoft Corp., potentially increasing their value.

5. Where can I find reliable information on investing in these stocks?

For up-to-date information on investing in Metaverses-related securities including mutual funds or ETFs—like ProShares Metavese ETF—you might consult financial news websites, stock market analysis platforms such as NASDAQ listings for individual companies’ performance data; always ensure you’re consulting credible sources before making investment decisions.