The 3 Best Metaverse Stocks to Buy for February 2023
The best Metaverse stocks give you exposure to some of the innovative companies that are likely to be the future of the internet. These companies have enormous potential as providers of new technologies and platforms for the construction and operation of these spaces.
The metaverse itself is still in early development, but its potential is significant. Companies are building immersive platforms for online entertainment that include virtual gaming experiences and social connections.
Some companies see the metaverse more as a platform for work, education, and commerce. Time will tell where the most successful Metaverse companies focus, but for now, some big names have emerged as the best Metaverse stocks to buy right now.
AI, virtual reality, and augmented reality continue to gain ground, and Metaverse stock should see significant growth as a result.
| META | meta platforms | $185.34 |
| RBLX | Roblox | $37.99 |
| NVDA | Nvidia | $222.18 |
Metaplatforms (META)
Source: Blue Planet Studio / Shutterstock.com
meta platforms (NASDAQ:META) stock has been heavily vilified since its pivot and renaming. Investors vociferously questioned whether Facebook overestimated the potential of the metaverse by renaming it. That alone led to capital flight from the stock. Factors like the slowdown in ad spending in 2022 helped add to investor concerns.
Meta did much to reverse this continuous downtrend on February 2 when it revealed cost-cutting efforts and shareholder-friendly decisions. CEO Mark Zuckerberg repeatedly pointed to efforts to increase efficiencies and cut more jobs after the company laid off 11,000 employees in November.
Meta also issued a $40 billion share buyback, meaning shareholders’ current shares are suddenly worth more.
Meta Platforms performed better than expected with sales of $32.17 billion. However, it was still the third straight quarter of declining sales for the company. Reality Labs, its Metaverse reporting division, had revenue of $727 million, resulting in a loss of $4.28 billion.
Given the overall positive results, Meta is likely to experience less dismay as it continues to develop its suite of Metaverse products and services.
Roblox (RBLX)
Source: Michael Vi / Shutterstock.com
Roblox (NYSE:RBLX) Stock is an interesting Metaverse game as the company has developed a popular platform for creating and playing online games and virtual experiences.
The stock is relatively young and went public in early 2021. Since then, its price has varied greatly with overarching metaverse narratives. But stock prices are lower now, making the stock a reasonable consideration.
The good news for Roblox is that post-pandemic narratives that plagued the company and reduced prices have reversed. During the pandemic, Roblox saw a surge in demand as users flocked to its platform while largely being locked inside. Then those trends reversed as the world opened up again as the pandemic subsided. Investors feared that Roblox might not recover.
That doesn’t appear to be the case, however, as December hours logged on the platform rose to 4.7 billion, or up 21%. The company is expected to report fourth-quarter and full-year results on February 15, and if user growth in December is any indication, earlier fears were overblown.
NVDA (NVDA)
Source: Shutterstock
Nvidia (NASDAQ:NVDA) stock is primarily known as a semiconductor company, but its business is expansive, covering wide areas of hardware and software. This includes gaming and virtual reality.
In the Metaverse, Nvidia provides technologies that help developers build and operate virtual worlds. This includes graphics processing units (GPUs) designed for the complex demands of real-time rendering of the graphics seen in virtual Metaverse experiences.
Nvidia invented the GPU back in 1999, and the company envisions that the GPU will act as the brain for computers when it comes to AI. Nvidia also touches on artificial intelligence and data management in relation to the Metaverse.
Nvidia’s Omniverse platform is the company’s toolset for building the 3D Internet that is the Metaverse. The platform is based on Pixar’s technology and can enable AI functions for developers. Enterprises use Omniverse to create large-scale digital twins to create virtual simulations that are in real-time sync with the real world.
At the time of publication, Alex Sirois had no position (either directly or indirectly) in any of the securities mentioned in this article. The opinions expressed in this article are those of the author and are governed by InvestorPlace.com Posting Policies.
