The metaverse, a fusion of digital and physical spaces offering an unrivaled opportunity for reshaping human interaction and collaboration, is anticipated to attain a staggering market value of $936.6 billion by 2030. As the creators of this transformative virtual realm, investing in metaverse stocks now could yield substantial returns.
Microsoft (MSFT)
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Microsoft (NASDAQ:MSFT) has already entrenched itself in the metaverse realm through its mixed reality platform Mesh and Minecraft’s integration of metaverse features. Its recent $70 billion acquisition of Activision Blizzard is a signal of its significant foray into the metaverse with control over popular gaming worlds like Call-of-Duty and World of Warcraft.
With a dominant presence in operating systems, cloud computing, and now gaming, Microsoft is positioned as a pivotal gateway to the metaverse. The colossal resources at its disposal could construct the necessary infrastructure and applications to breathe life into virtual worlds.
Moreover, Microsoft’s substantial investments in OpenAI and the integration of AI technology into its product ecosystem add further weight to its metaverse ambitions.
In Q4 of 2023, Microsoft reported a remarkable $62 billion in revenue, marking an 18% year-over-year increase, coupled with a 33% surge in operating income to $27 billion. With such robust fundamentals, Microsoft emerges as a stable yet high-potential investment option for exposure to the burgeoning metaverse landscape.
Apple (AAPL)
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As a trailblazer in consumer technology, Apple (NASDAQ:AAPL) is strategically positioned to lead the charge into the metaverse. The tech titan has laid the groundwork for this futuristic digital realm through its advancements in spatial computing and AI.
Apple recently launched the Apple Vision Pro, an augmented reality headset that overlays digital imagery onto the real world, effectively transforming any physical space into a computer interface driven by spatial computing and AI integration. This cutting-edge concept sets it apart from traditional virtual reality, potentially providing an edge in popularizing the metaverse.
Augmenting its breakthrough hardware, Apple boasts a robust suite of software and services ready for metaverse and AI integration, such as ARKit, Spatial Audio, and RealityKit.
Across its product range, from iPhones to MacBooks, Apple showcases strong fundamentals, culminating in over $119 billion in revenue in the quarter ending December 30, 2023, driven by robust iPhone sales and services.
Meta Platforms (META)
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As a pioneer of the metaverse, Meta Platforms (NASDAQ:META) is dedicated to realizing its vision for the next phase of social connectivity. The company has hedged its future on crafting the virtual realms of the metaverse and enabling immersive experiences.
Central to Meta’s metaverse endeavors are its proficiencies in augmented and virtual reality technologies. Its investments in hardware like Ray-Ban’s smart glasses and Oculus VR headsets lay the groundwork for spatial computing. Moreover, with billions of users across apps such as Facebook and Instagram, Meta possesses an extensive user base propelling metaverse adoption.
During the fourth quarter of 2023, Meta recorded over $40 billion in revenue, illustrating the robustness of its advertising business. This sturdy financial standing provides the capital for Meta’s Reality Labs segment, spearheading metaverse innovation. Consequently, as Meta translates more initiatives into commercial products, its metaverse initiatives could unlock new revenue streams.
By spearheading the metaverse journey, Meta firmly plants its flag as a leading force in the future of social interaction. With solid fundamentals, financial strength, expansive reach, and burgeoning metaverse and AI innovation, Meta emerges as a compelling choice for investors seeking long-term growth in this futuristic digital landscape.
On the date of publication, Andrea van Schalkwyk held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
