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The metaverse, a realm of virtual wonders, has regained the spotlight amidst the AI boom. Despite the emergence of artificial intelligence, the allure of digital landscapes remains strong. Recent events, like Apple’s Vision Pro release and Forbes’ venture into The Sandbox, reaffirm the enduring appeal of the metaverse. Yet, in this dynamic environment swirled with uncertainty, choosing the right metaverse stocks is more vital than ever.
Forecasts predict the metaverse market to reach a colossal $74.4 billion in 2024, with a monumental leap to $507.8 billion by 2030. This collision of digital and physical worlds promises unmatched growth, fostering a new era of limitless human connections. With this ever-expanding economy, metaverse stocks are on a meteoric rise, beckoning investments in innovative technologies and virtual escapades. Nestled strategically amidst this evolving digital revolution lie three metaverse stocks poised to provide investors a smooth sail through this transformative epoch.
Meta Platforms (META)
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Meta Platforms (NASDAQ:META) leads the charge in the metaverse’s dynamic evolution, steering innovation in virtual reality (VR) and augmented reality (AR) technologies. Recent ventures such as investments in Ray-Ban’s smart glasses and popular Oculus VR headsets underscore Meta’s dedication to forging the infrastructure for spatial computing. With billions of users on platforms like Facebook and Instagram, Meta is primed to drive metaverse adoption on a grand scale.
Financially, the company has seen a remarkable surge, with shares skyrocketing by 182% over the past year. Quarterly GAAP earnings-per-share of $5.33 exceeded estimates by 39 cents, while a 24.7% year-over-year revenue spike to $40.1 billion surpassed expectations by $940 million. The immensely popular Meta Quest VR headset acts as a key gateway into immersive metaverse realms. Despite competition from Apple’s Vision Pro, Meta CEO Mark Zuckerberg extols the Quest 3’s superior value, comfort, broader field of view, and more open app ecosystem. Analysts from TipRanks are steadfast in their Strong Buy rating for Meta, projecting a potential 9% average upside, emphasizing the company’s promising market stance.
Microsoft (MSFT)
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While not the typical metaverse contender, Microsoft (NASDAQ:MSFT) emerges as a top secondary player in the metaverse realm. Their unveiling of ambitious metaverse plans in September signaled a shift, empowering organizations through HoloLens and Mesh for Teams. This initiative revolutionizes collaborative creativity and work dynamics, offering engineers and designers unprecedented freedom to craft tailored virtual domains. Additionally, streaming Xbox games directly to the cloud enables seamless gameplay on various devices, elevating the metaverse experience.
Reflecting on the past year, Microsoft’s shares have ascended by 61%. Quarterly GAAP earnings per share stood at $2.93, exceeding estimates by 16 cents, while revenue surged to $62.02 billion, a 17.7% increase from the preceding year, surpassing predictions by $890 million. TipRanks analysts anticipate a Strong Buy classification and a healthy 14% upside potential, positioning Microsoft for continued leadership and innovation in AI.
Nvidia (NVDA)
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Pioneering the metaverse stock domain, Nvidia (NASDAQ:NVDA) continually pushes tech limits with visionary expertise. The launch of Omniverse Cloud Services showcases Nvidia’s commitment to driving industrial metaverse applications. This bold move has propelled Nvidia’s market value to a staggering $2 trillion, surpassing titans like Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).
In the recent quarter, Nvidia reported robust non-GAAP earnings per share of $5.16, surpassing forecasts by 52 cents. Revenue hit $22.1 billion, marking a notable annual surge of 265.3%, exceeding estimates by $1.55 billion. Additionally, a record data center revenue spike of 409% from a year ago and a 27% sequential increase further solidify Nvidia’s position. Their powerful GPU RTX technology empowers professionals to craft seamless metaverse experiences with lifelike visuals and accelerated AI. TipRanks analysts resoundingly endorse Nvidia as a Strong Buy, foreseeing a solid 9% average upside potential.
On the date of publication, Muslim Farooque had no direct or indirect positions in the securities mentioned. The opinions expressed in this article solely belong to the writer and are subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque, a seasoned investor and eternal optimist, brings a keen eye for tech stocks. With a lifelong passion for gaming and tech, his affinity for analyzing technology stocks shines through. Holding a bachelor’s degree in applied accounting from Oxford Brookes University, Muslim stays at the forefront of market trends.
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