The metaverse is a virtual reality world where individuals can meet to play games, chat, collaborate, and shop. Because many businesses and engineers are working to translate the virtual reality concept into actual applications and uses, the metaverse has yet to be properly defined. Mark Zuckerberg, CEO of Meta Platforms Inc. (ticker: FB), popularized the phrase "metaverse" in late 2021, and there has since been significant discussion and advertising on the subject. Nonetheless, by 2022, the bulk of firms participating in the metaverse's construction had seen their share prices drop. The rose's bloom has faded for the time being. This may, however, create an opportunity for investors to profit.
Any discussion on metaverse stocks must start here. After all, Facebook Founder Zuckerberg called Facebook Meta Platforms because he believes the metaverse will be the next stage in the evolution of his organization. To put it simply, the market is concerned about this: As of May 24, FB stock was down roughly 46 percent year to date. Meta's key revenue sources will continue to be Instagram and its legacy Facebook product for the foreseeable future. Investors are suspicious of Meta's claims about virtual reality. Prior capital allocation attempts, such as the acquisition of Instagram and WhatsApp, have been tremendously beneficial for Zuckerberg. For investors willing to reinvest in Zuckerberg, FB stock looks enticing at less than 16 times this year's estimated earnings.
Microsoft
Microsoft is another Big Tech juggernaut with a significant metaverse presence. Microsoft's HoloLens headset, for example. The HoloLens is primarily a business device, costing several thousand dollars and designed to aid in mixed-reality applications including as manufacturing, real estate, virtual communications, and 3D printing. Over time, Microsoft may be able to incorporate virtual reality technology into its game division. Microsoft is already the market leader in consoles, and its upcoming acquisition of Activision Blizzard Inc. might help it expand its gaming footprint even further (ATVI). Microsoft is far from a pure metaverse participant, but it should be able to take home a sizable chunk of the metaverse pie.
Autodesk
Autodesk is not a pure metaverse player. However, it is already a massive and extremely lucrative firm with a metaverse component that increases the stock's upward potential. Autodesk's core product is software that equips professionals with superior design capabilities. Architects use Autodesk to create plans for buildings, factories, skyscrapers, and other constructions. The industrial angle is especially appealing, as firms increasingly deploy digital twins. A virtual replica of a physical entity, such as a factory assembly line, is referred to as a digital twin. Engineers can then experiment with the virtual object without endangering the current real-world configuration. Companies such as Autodesk should expect increased growth as these enhanced-reality applications gain traction.
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