3 Ways to Get Rich From Metaverse Stocks
These are some of the top metaverse stocks to buy to get rich in a sector which could balloon to a potential $1.6 trillion market by 2030.
As the market pulls back, it’s time to go bargain hunting. In fact, some of the biggest opportunities may be found on this list of top metaverse stocks to buy to get rich.
According to analysts at Emergen Research, the metaverse market could be worth up to $828.95 billion by 2028. These analysts believe that by 2030, the metaverse could be worth $1.6 trillion. The crazy thing is, this isn’t even the most aggressive forecast for the sector. As I noted on April 1, Matthew Ball, the CEO of Venture Capital firm Epyllion, said the metaverse could be a $10 trillion to $30 trillion market opportunity over the next decade.
Thus, for growth investors, this is a space worth paying attention to.
Corporations certainly are. Many major brands are getting involved with the metaverse. “The planet’s best-known companies and savviest marketers—from Walmart and Coca-Cola to Disney and Victoria’s Secret—continue to invest to stake their claim in the virtual worlds of the metaverse. Technology leaders such as Facebook/Meta, Google, Microsoft and Apple see the metaverse as the new frontier for advertising and digital experiences,” says AdAge.com contributors Joan Smith and Jen Friese.
Despite recent industry hiccups, there’s significant upside potential with metaverse stocks. Here are three of the top bets I think are worth making in this space right now.
|VR||Global X Metaverse ETF||$18.31|
|META||Meta Platforms||$132.80|
|RBLX||Roblox||$43.38|
Global X Metaverse ETF (VR)
One of the best ways to diversify portfolios among a given index or sector is often with an exchange traded fund (ETF). As it happens, the metaverse is a sector which isn’t excluded from this honor. The Global X Metaverse ETF (NASDAQ:VR) is one of the top metaverse stocks to buy to get rich (or at least, an accumulation of metaverse stocks).
With an expense ratio of 0.50%, this ETF provides relatively inexpensive diversification to this high-growth sector. Notably, this ETF invests in companies that are positioned to benefit from the development and commercialization of the Metaverse. This includes companies involved in the development of hardware and software that allow users to experience extended digital realities; creator platforms, where live streaming and other media content is shared in 3D simulations; and creator economies, involving the development digital payments.
Some of its top holdings include Roblox (NYSE:RBLX), Take-Two Interactive (NASDAQ:TTWO), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), and Amazon (NASDAQ:AMZN), to name a few. More can be found on the ETF site here.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) may be one of the top ways for investors to gain exposure to the incredible growth potential of the metaverse.
According to the company, “The metaverse will feel like a hybrid of today’s online social experiences, sometimes expanded into three dimensions or projected into the physical world. It will let you share immersive experiences with other people even when you can’t be together.”
Granted, the company is struggling to gets its metaverse off the ground. In fact, its Horizon Worlds, a free virtual reality online video game, has so far failed to meet expectations for user growth. As noted by Fox Business contributor Andrew Miller, Meta Platforms had to revise its monthly active user projection to 280,000 by year end, down from a previous projection of 500,000.
We also have to consider the company has sold about 15 million Quest 2 VR headsets since its launch. It also plans to launch Quest Pro and Quest 3 by next year. These headsets are all expected to be linked back to Horizon Worlds. Over time, those who think Meta’s headsets and metaverse setup will win the race may look at this early traction as success (even when analysts generally don’t).
The key thing to keep in mind is that Meta is still very profitable, with operating margins around 29%. The company also has about $40.5 billion in cash. Thus, if there’s any company that can invest billions to make the metaverse a reality, it’s Meta.
Roblox (RBLX)
At the moment, Roblox is the closest thing to a mainstream social metaverse. This company’s mission is to build a human co-experience platform that enables billions of users to come together to play, learn, communicate, explore and expand their friendships. It’s another one of the top metaverse stocks to buy to get rich.
Indeed, after a rough pullback, the gaming stock is showing some signs of life. This is thanks to some strong growth numbers posted in September. Daily active users grew to 57.8 million, up 23% year over year. Notably, these users were also spending more time on the platform, with another key metric, hours engaged, up to 4 billion, a 16% year-over-year increase. Better, estimated bookings were between $212 million and $219 million, up 11% to 15% year-over-year.
Helping matters, Walmart (NYSE:WMT) just announced it was partnering with Roblox to launch metaverse experiences. Part of the reason for the partnership is the c0mpany is well aware its customers are spending a lot of time there. If time is money (or at least more future online purchases), Roblox is leading the pack in this sector.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.