The 3 Top Metaverse Stocks to Own for 2024
The metaverse has been a costly disaster so far. But don’t write the market or the top metaverse stocks off just yet.
For one, despite a $46.5 billion loss on the metaverse, Meta Platforms’ (NASDAQ:META) CEO Mark Zuckerberg isn’t throwing in the towel. Earlier this year, he told The Verge, “I don’t know how to more unequivocally state that we’re continuing to focus on Reality Labs and the metaverse,” adding the company was still pouring more than $15 billion a year into the project.
Plus, consider this. The global healthcare industry is embracing the metaverse, which could revolutionize medical training, healthcare delivery, robotics and remote consultations to name a few. Moreover, according to Spherical Insights, the market could be worth nearly $500 billion in the next 10 years.
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Even the automotive metaverse market could grow from $2.2 billion in 2022 to more than $27.2 billion by the time 2032 rolls around. The industry is reportedly using virtual reality to create realistic showrooms and even go on simulated test drives, according to Allied Analytics.
But that’s just the start. When it comes to the metaverse and some of the top metaverse stocks, there’s a lot to get excited about. In fact, here are three top metaverse stocks with a good deal of upside remaining.
Roblox (RBLX)
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The last time I mentioned Roblox (NYSE:RBLX), I said, “RBLX is the closest thing to a mainstream metaverse, with about 70.2 million daily active users. Plus, analysts at Roth MKM reiterated its buy rating on the stock.” That was on Feb. 5, as RBLX traded at $39. From there, it tested a high of $47.11 per share, but now trades around 40 per share. Even at this price I still like it as one of the top metaverse stocks.
The company issued better-than-expected quarterly results and a strong outlook. While RBLX stock lost 52 cents in the fourth quarter, that was better than estimates for a loss of 55 cents. In addition, bookings jumped 25.3% year over year to $1.13 billion, which was also better than estimates of $1.08 billion.
Moving forward, Roblox expects first-quarter bookings to come in between $910 million and $940 million, which is better than estimates for $902.6 million. Plus, it expects its top line to grow by at least 20% a year through 2027.
Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
Last trading near $787, Nvidia (NASDAQ:NVDA) shares could easily hit $1,000 near term. First, demand for the company’s products has been explosive. We can see that with its earnings. Adjusted earnings per share (EPS) came in at $5.16, as compared to expectations of $4.64. Revenue of $22.1 billion was also above expectations of $20.62 billion. For its current quarter, the company expects to see sales of $24 billion as compared to estimates of $22.2 billion. That’s up from the $7.19 billion in sales posted a year earlier.
Second, the metaverse needs Nvidia’s chip to function. According to GLGInsights.com, “NVIDIA’s core competency, producing powerful graphics hardware with chips capable of running huge calculations in parallel, is the same stuff that allows massive metaverse projects to run.”
Last, we also have to remember that Nvidia’s own Omniverse platform allows users to create and simulate virtual worlds in the metaverse. In addition, NVDA — which crossed the $2 trillion market cap mark the other day — is showing some weakness now, but that’s to be expected after running from $675 to $825. Once the healthy pullback in NVDA stock is over, I’d buy and hold the dip. It’s going well above $1,000 per share, in my opinion.
Roundhill Ball Metaverse ETF (METV)
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Or, if you’d rather diversify your metaverse holdings at a low cost, there’s the Roundhill Ball Metaverse ETF (NYSEARCA:METV). At $12.24 per share, with an expense ratio of 0.59%, the ETF is the world’s largest metaverse fund and tracks the performance of the Ball Metaverse Index. Some of its top holdings include Nvidia, Meta Platforms, Roblox, Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Qualcomm (NASDAQ:QCOM) to name a few.
Since bottoming out in late 2022, the METV ETF ran from a low of about $7 to a recent price of $12.24. With holdings in top tech names, I believe that with patience METV ETF can double or even triple from current prices.
Even more impressive, according to Roundhill Investments, the ETF could benefit from two key areas of growth. First, “The Metaverse’s economic reach is anticipated to hit an impressive $10.7 trillion by 2033, signaling an era of unprecedented expansion.” And second, “VR/AR headset shipments are forecasted to reach 31.1 million by 2026, indicating steady industry growth and market traction.” Both could help fuel significant upside for the METV ETF.
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.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
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