Meta Materials (NASDAQ:MMAT) — A picks-and-shovels opportunity that feeds the future of tech
Enthusiast Gaming Holdings (NASDAQ:EGLX) — Targeting Gen Z and millennials in the lucrative e-gaming sector
Cinedigm Corp. (NASDAQ:CIDM) — A digital entertainment company that may be moving into the NFT space
Immersion Corporation (NASDAQ:IMMR) — Developing digital products users will be able to “touch”
Super League Gaming (NASDAQ:SLGG) – An e-sports company that is going all in on the metaverse
Matterport (NASDAQ:MTTR) — The leader in digital twin, 3D data technology
Hall of Fame Resort and Entertainment Company (NASDAQ:HOFV) — A picks-and-shovel play on how the National Football League will manage the metaverse
Metaverse stocks are all the rage today. However if you ask 10 investors what the metaverse is, you’re likely to get 10 different answers. What seems to be universal is that to some extent, the metaverse will be about Web 3.0.
In this evolution of the internet, decentralization promises to give data possession back to the end users. And as you would expect, there are many companies looking to capitalize on the metaverse. And many of these companies fit into the category of penny stocks.
The good news about penny stocks is that in some cases, a ten-fold gain is possible. And strictly from the standpoint of share price, a little investment can go a long way.
Of course, it has to be stated that many stocks remain penny stocks for many reasons. With that in mind, if you have a speculative itch to scratch, these seven metaverse penny stocks merit a place on your watchlist.
Meta Materials Inc.
Enthusiast Gaming Holdings Inc.
Super League Gaming, Inc.
Hall of Fame Resort & Entertainment Company
Metaverse Penny Stocks to Buy: Meta Materials (MMAT)
Source: Yuriy Golub / Shutterstock.com
Meta Materials is engaged in the design, development and manufacturing of “sustainable, highly functional materials.” I won’t pretend to be able to explain exactly what that means. But think of it as a picks-and-shovels company. And it will be providing products and solutions for sectors such as 5G, autonomous vehicles and the medical device sector.
It’s also expected to be a significant player in augmented reality which is a key application in the metaverse.
The company has 269 active utility and design patent documents and has been issued 37 patents in 24 countries including the United States. Meta Materials also has 126 issued patents and 80 pending applications in 24 additional countries.
Enthusiast Gaming Holdings (EGLX)
Source: McLittle Stock / Shutterstock.com
Enthusiast Gaming considers itself as one of the largest vertically integrated gaming media companies in the world. By some accounts, the company’s participation in e-gaming is enough to consider it for inclusion as a metaverse stock.
The company’s flywheel business model targets the Gen Z and Millennial to engage with an ecosystem of where content is created, consumed and, importantly, monetized.
And Enthusiast Holdings is specifically targeting a monetization opportunity with the Web 3.0 including NFTs and cryptocurrencies.
Enthusiast Holdings is not yet profitable and isn’t expected to be within the next couple of years. That’s not unusual with penny stocks. And it doesn’t mean it can’t be a 10X stock.
One key for investors to watch is continued revenue growth. In the company’s fourth-quarter earnings report it cited a 34% quarter-over-quarter revenue increase and a 130% gain in year-over-year revenue.
EGLX stock has a consensus price target of $6.97 which would be a 194% increase from the stock’s current level.
Metaverse Penny Stocks to Buy: Cinedigm Corp. (CIDM)
Source: Pavel Kapysh / Shutterstock.com
The metaverse may be many things, but one universal attribute is that it will involve digital entertainment. That’s why Cinedigm makes this list of metaverse penny stocks.
The company is a niche streaming play. Think of it like this. The larger platforms like Netflix (NASDAQ:NFLX), Peacock, and Hulu become, the more they can feel like a different version of traditional cable or satellite television. Cinedigm does produce some original content, but it also specializes in syndicating tightly focused niches that should allow them to capture and hold on to a loyal audience.
And if Cinedigm moves into the area of non-fungible tokens (NFTs), it will make them a bonafide metaverse play. At 79 cents a share, CIDM stock is literally a penny stock. But the consensus price target suggests that there could be an upside move of nearly 350% in the next 12 months.
Cinedigm is also beginning to turn a profit and is seeing a steady stream of institutional buying.
Immersion Corporation (IMMR)
As the company’s name implies, Immersion Corporation is involved in the creation of touch feedback technology. As the digital world evolves into a truly interactive space, we’ll need to be able to touch things in the metaverse as if they were real.
Immersion’s products are currently used in real-world items like haptics for smart phones, gaming consoles, and the touch screen in your vehicle. However, it’s using its StrikerVR (virtual reality) technology to design items such as baseball bats and fishing poles, even guns that will add realism to those digital activities. The company has over 150 licensed customers.
IMMR stock trades for less than 10x earnings and looks to have a fair valuation which is not always the case with metaverse penny stocks. And analysts give the stock an upside of over 300%
Metaverse Penny Stocks to Buy: Super League Gaming (SLGG)
Source: Gorodenkoff / Shutterstock.com
Like many companies on this list, Super League Gaming is not a pure play on the metaverse. But the company is becoming a fixture in the digital world.
Late in 2021, Super League Gaming announced they will give creators the power to build their audiences inside the metaverse. And this was after they announced the purchase of Bloxbiz. This gives them the chance to monetize ads within a metaverse environment such as the ones created by Roblox (NYSE:RBLX).
Institutional investors plowed into SLGG stock in the second quarter of 2021. Buying activity hasn’t been as strong since then. However, neither is selling activity. That means that many institutions still believe in the long-term narrative with Super League Gaming. And analysts agree with a stock price that could be 185% higher than it is as of this writing.
Source: II.studio / Shutterstock.com
Matterport is the developer and unquestioned leader in the area of digital twin technology. This involves creating a digital facsimile of a building that individuals can visit and walk through as if they were doing so in the real world.
The company has many applications in real estate. And the slowdown in that sector is, perhaps why the stock is down over 70% in the last 12 months. Another reason for the sell-off may simply be that retail investors are looking for more “sure things.” And MTTR stock does not fit that mode.
Nevertheless, the metaverse is being built whether you understand it or not. And patient investors may be rewarded by taking a small position in MTTR stock while it is trading for less than $8 a share.
Metaverse Penny Stocks to Buy: Hall of Fame Resort and Entertainment Company (HOFV)
Source: Alena Veasey / Shutterstock.com
Last on our list of metaverse penny stocks is the Hall of Fame Resort and Entertainment Company. The emerging company is a picks-and-shovels play on the appeal of the National Football League (NFL). It is a separate business unit from the Pro Football Hall of Fame, however the two entities share a common vision.
HOFV is attempting to create an interactive NFL experience through media, gaming and on-site asset creation. All of these areas have some relation to the metaverse. For example, through its partnership with the real-world Pro Football Hall of Fame in Canton, Ohio, the company has an on-ramp into the NFT market. The tie-in between digital collectibles and the NFL becomes readily apparent.
Currently, HOFV stock trades for just under $1. But analysts believe the stock may triple. In the month of March there was significant insider buying that is almost always a bullish indicator for a stock.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
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