7 Best Metaverse Stocks to Buy in 2022

The 7 Best Metaverse Stocks to Buy in 2022

When Facebook announced its corporate name change to Meta Platforms Inc. in October 2021, many investors started predicting how transformative and far-reaching the metaverse could become. The metaverse concept is about building integrated virtual online environments in which people live, work, and play. It might sound like a real-life "Matrix" science fiction concept, but self-driving cars (TESLA-style), smartphones, and even the internet itself were once science fiction concepts too. According to Bank of America, the global metaverse market could grow to $800 billion by the mid-2020s. Here are seven metaverse stocks worth buying under today's conditions.

What Are the Best Metaverse Stocks? 2022

Meta Platforms Inc. (FB)

Meta CEO Mark Zuckerberg is so committed to shifting the company's priority to the metaverse that he even renamed the company Meta. Zuckerberg announced an initial $10 billion investment for metaverse development, and Meta recently obtained a number of patents related to technology that uses metaverse users' biometric data to help build what they see and perceive in the virtual world. Meta's Oculus and Horizon virtual reality subsidiaries will also play a big role in the metaverse gaining momentum. The company plans to monetize the metaverse base through virtual commerce and advertising revenue streams.

Unity Software Inc. (U)

Unity Software owns one of the two major 3D video game engines that let designers customize how video game players move and interact in their games. The company's non-gaming business also serves the industrial, architecture, animation, and engineering sectors. In November, Unity acquired parts of Weta Digital, the visual effects studio that helped create The Lord of the Rings films. Unity CEO John Riccitiello said of the deal, "What we want to do is enable your average 14-year-old to do what Peter (Jackson) did in creating Gollum and putting that character into the metaverse."

Roblox Corp. (RBLX)

Roblox is an online entertainment platform that lets users develop games. The platform may be the closest thing to the metaverse in our lives today. Roblox is essentially a video game with roughly 50 million daily active users, its own digital currency, and a range of unique virtual experiences. Roughly half of its user base is under the age of 13, which puts the company in a strong position for the future. Roblox CEO David Baszucki recently told CNBC, "Our whole company is exactly focused on innovation to drive and truly lead this vision that some call the metaverse—or shared human experience—forward."

Autodesk Inc. (ADSK)

Autodesk makes software used to design buildings and objects. Engineers and architects use the company's Revit building information modeling program to create virtual building models, and Autodesk Rendering can turn those models into a virtual reality environment. About 70% of Autodesk's business comes from design software for architecture, engineering, and construction, or AEC. Autodesk has a product suite specifically designed for creating virtual reality and augmented reality 3D animations and buildings, making it a great fit for building the metaverse. In the third quarter of 2021, Autodesk's total volume grew 16%, and AEC segment revenue rose 22% to $511.1 million.

Microsoft Corp. (MSFT)

Microsoft could be the first leader of the professional metaverse. Microsoft's enterprise metaverse base aims to integrate the "internet of things," digital twins, and mixed reality to help Microsoft grow its dominance in the professional software market. The company also made an aggressive move into the social metaverse space on January 18, when it announced a pending deal to acquire video game giant Activision Blizzard Inc. (ATVI) for $69 billion. The Activision deal will give Microsoft instant access to 400 million monthly active players, some of whom are already spending money in the digital world. The company's growing cloud technology will also give it major metaverse network-scale advantages.

Nvidia Corp. (NVDA)

Nvidia makes the graphics and video processing chips used in high-end computing servers, supercomputers, and AI and VR applications. The metaverse world will definitely require huge amounts of processing power, and Nvidia chips will likely play a critical role. In November, Nvidia CEO Jensen Huang told CNBC that the metaverse could save money and resources by simulating factories, facilities, power grids, and other infrastructure products before they're built in the real world. "By doing this, we can reduce the amount of waste, and that's also why the economics are so good for companies," Huang said.

Qualcomm Inc. (QCOM)

At the 2022 Consumer Electronics Show, chipmaker Qualcomm announced a new partnership with Microsoft to develop technology that expands consumer and enterprise adoption of augmented reality. At the company's third-quarter earnings call in November, CEO Cristiano Amon said Qualcomm's Snapdragon semiconductor products would dominate the next generation of the internet of things and the metaverse. Snapdragon already powers a range of cutting-edge augmented and virtual reality devices, including Meta Platforms' Oculus Quest headset. "If you're going to spend time in the metaverse, Snapdragon will be your ticket," Amon said.