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Virtual reality (VR), once a niche technology, has transcended its entertainment roots to become a multifaceted tool with broad applications. According to Mordor Intelligence, the VR market is set to soar to $67.66 billion by 2024, projecting a staggering $204.35 billion valuation by 2029. This translates to a robust compound annual growth rate of 24.74%. As the VR landscape evolves beyond gaming, educators are harnessing its potential for immersive learning, and industries are utilizing VR for training purposes in risk-free settings. Given these diverse applications, let’s zero in on the promising VR stocks that are worth considering for your portfolio.
Meta Platforms (META)
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If we’re discussing immersive technologies, Meta Platforms (NASDAQ:META) is an indispensable player in the field. Leveraging the vast reservoir of data from its Facebook ecosystem, Meta has made substantial investments in both hardware and software components crucial for active participation in the metaverse. As exemplified by the unanimous ‘strong buy’ ratings from 40 out of 43 Wall Street experts, this stock is clearly making waves.
For fiscal 2023, Meta outperformed earnings per share estimates across all quarters, boasting an average earnings surprise of 9.78%. Analysts are eyeing an EPS of $20 on a revenue projection of $158.24 billion for the current fiscal year, significantly outpacing last year’s metrics of $14.87 EPS and $134.9 billion in sales.
Alphabet (GOOGL)
Operating under the internet content and information domain, Alphabet (NASDAQ:GOOGL) is a global titan with its diverse product and platform offerings through segments like Google Services and Google Cloud. Boasting control over the internet through its search engine, Alphabet is venturing into the VR realm, albeit with a focus on augmented reality. Yet, the synergy between VR and AR in enhancing digital experiences and productivity cannot be overlooked.
Analysts affirm GOOGL as a strong buy, with 29 out of 37 experts advocating for a buy rating. The stock sports an average price target of $165.28, with a high-end estimate of $180. For fiscal 2024, analysts anticipate an EPS of $6.81 and revenues touching $342.31 billion, showcasing substantial growth over the previous year’s figures of $5.80 EPS and $307.39 billion in sales.
Microsoft (MSFT)
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A stalwart in infrastructure software, Microsoft (NASDAQ:MSFT) stands out in universal software solutions, essential for seamless business operations. Noteworthy is Microsoft’s foray into mixed reality with its HoloLens technology. This innovation holds significant implications, especially in employee training within critical industries, ushering in accelerated learning and swift error rectification.
With an overwhelming 33 buy ratings out of 35 analysts, Microsoft clearly enjoys Wall Street’s favor. The stock holds an average price target of $473.77, with an ambitious high-side projection of $550, indicating a robust growth potential of nearly 32%. For fiscal 2024, analysts predict an EPS of $11.65 and revenues reaching $244.22 billion, showcasing a substantial boost from the prior year’s earnings of $9.81 EPS and sales of $211.91 billion.
On the date of publication, Josh Enomoto had no positions in the securities mentioned in this article. The views expressed are solely those of the author, adhering to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst at Sony Electronics, Josh Enomoto has brokered major contracts with Fortune Global 500 companies, providing crucial insights for investment markets and various industries. Connect with him on Twitter @EnomotoMedia.
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