The term “metaverse” was coined by author Neal Stephenson in 1992, painting with astounding accuracy a picture about technology that would eventually leave the fictional realm. Little did he know his sci-fi concept would permeate the real world and end up getting so much attention from businesses and investors across the globe. The metaverse is gaining more steam by the minute, and many big names in the stock market are getting involved.
With metaverse stocks turning into a hot topic on Wall Street, they’ve quickly become one of the most widely followed financial trends. If you are curious about this investment option and are considering adding metaverse stocks to your investment portfolio, these picks will help get you started.
What Are the Best Metaverse Stocks To Buy?
With many metaverse stocks becoming a focus in the financial world these days, it can become overwhelming to track all of them. Here are six metaverse stocks you could profit from in 2023:
- Sony Group (SONY)
- Match Group (MTCH)
- Take-Two Interactive Software (TTWO)
- Nvidia (NVDA)
- Autodesk (ADSK)
- Microsoft (MSFT)
1. Sony Group (SONY)
In a June 2022 interview, CEO Kenichiro Yoshida revealed the metaverse as a growth area for Sony, with building a metaverse around entertainment as its first priority. It’s a natural progression for a company that’s already firmly established as a market leader in cutting-edge entertainment technology and content.
2. Match Group (MTCH)
This dating industry giant is mostly known as the parent company of Tinder and Match.com. It has little competition in the world of dating apps, plenty of untapped market potential — and plans to launch a virtual environment for singles. Despite a high price-to-earnings ratio, which suggests the stock could be priced high, this one could be a good choice for investors comfortable with a riskier stock.
3. Take-Two Interactive Software (TTWO)
This video game publisher is responsible for industry hits like Grand Theft Auto, NBA 2K and Red Dead Redemption. The company’s virtual multiplayer platform, GTA Online, brings in well over half a billion dollars per year in in-app transactions.
4. Nvidia (NVDA)
This company produces graphics and video processing chips for artificial intelligence and high-end computing. It’s an investor favorite, and now it’s playing a massive role in powering the metaverse.
5. Autodesk (ADSK)
In addition to publishing ubiquitous industrial and architectural 3D design software like AutoCAD, Autodesk has visual effects, virtual reality and generative design software that developers and creatives can use to create virtual worlds and assets, including non-fungible tokens.
6. Microsoft (MSFT)
Last year, Microsoft announced it would acquire gaming company Activision Blizzard in a $68.7 billion deal that will give it access to Activision’s gaming titles, including bestsellers like Call of Duty, as well as its approximately 390 million monthly users, according to Cointelegraph. The acquisition is among Microsoft’s latest metaverse plays, following its Mesh for Teams mixed-reality space and HoloLens, its augmented reality headset and platform. The company also has a partnership with Meta, which will use Microsoft products on its virtual-reality headsets.
Good To Know
Purchasing individual stocks can be a risky investment strategy. For some investors, a mutual fund or exchange-traded fund containing a diverse selection of stocks might be a better fit. The SPDR S&P Software & Services ETF, for example, invests in companies in the S&P Software & Services Select Industry Index, including companies in the interactive home entertainment sector that could be major players in the metaverse.
What Is a Metaverse Stock?
In a nutshell, metaverse stock is the capital raised by metaverse-related businesses and corporations through the issue and subscription of shares. It’s a security that represents ownership of a small fraction of one of these companies.
Many people already live, work and play in the metaverse without even realizing it. Those who play video games like Roblox and Fortnite or own NFTs and cryptocurrency are part of this new virtual experience. Other spaces in the metaverse include popular dating apps, virtual and augmented reality platforms and even social media. Some analysts say it’s a good idea to start buying and developing virtual land and assets in the metaverse space, which is bound to keep on growing and gaining financial power.
How Big Will the Metaverse Be?
With Meta Platforms in the spotlight, many companies wanted to partake in the metaverse craze. It’s estimated that the global metaverse market could reach $800 billion by the end of 2024.
The metaverse could be the next big thing in the stock market, and you might want to jump on the bandwagon sooner than later. The options listed above are a good place to start if you want to dip your toes in the metaverse stock world. Most have solid track records in the physical world and seem well positioned to lead the transition to the virtual one.
- Can you invest in the metaverse?
- Think of the metaverse as a new-and-improved internet. While you can’t invest in the internet, per se, because it isn’t a specific thing owned by a specific entity, you can buy stock in companies involved in building the network and creating the websites people use to shop, socialize, learn, play and work. The same is true for the metaverse — you can invest in the metaverse by investing in metaverse stock.
- How do I buy metaverse stocks?
- You can purchase shares in metaverse companies by opening a brokerage account — most simply by signing up with an online broker or an investing app. Once your account is active and you’ve funded it with money from a bank account or credit or debit card, you can select and purchase stocks.
- What is the best metaverse stock?
- Stocks are not one-size-fits-all investments. The best one for you depends on your budget and your risk tolerance. A metaverse stock like Sony or Microsoft could be a good choice if you prefer safer stocks in well-established companies, even if the stocks appreciate slowly. More aggressive investors hoping for higher returns might opt for a comparatively speculative stock like Match Group despite the higher risk. Either way, never invest more than you can afford to lose.
Daria Uhlig contributed to the reporting for this article.
Data is accurate as of Feb. 4, 2023, and is subject to change.