Top 3 Metaverse Stocks to Buy in February – The metaverse is being regarded as the next step in the internet’s growth, or Web 3.0. It’s a 3D version of the internet created by the merging of virtual reality, social networking, and gaming technologies, according to Bloomberg Intelligence, and it’s a roughly $800 billion opportunity.
Investors seeking for great metaverse stocks should look for companies that are leaders in the basic technologies that are required to bring the metaverse to life (e.g., virtual reality, social networking, and gaming). That’s why Alphabet (NASDAQ:GOOGL), Take-Two Interactive (NASDAQ:TTWO), and Facebook parent Meta Platforms (NASDAQ:FB) are all viable options right now.
To make money, investors don’t even have to chase risky, out-of-the-box tech stocks. Consider the metaverse as the next stage of growth for great technology businesses with the necessary assets to make it all work. If the metaverse is a three-dimensional version of the internet, it’s difficult to imagine a firm more positioned to profit than Alphabet’s Google, which has acted as the internet’s gateway for decades.
Alphabet has a $139 billion cash reserve to fuel investments. Augmented reality, which is featured in Google Maps, is one of the primary technologies it has been investing in for years, but its interest in metaverse technologies is far broader.
During the fourth-quarter earnings call, Alphabet CEO Sundar Pichai stated that blockchain is an area of interest for the company. The blockchain is a network of computer networks that validates all transactions in the already-thriving digital economy.
“Blockchain is definitely something we’re looking at on Web3,” Pichai stated. “For example, our Cloud team is investigating how they might assist our clients in developing, transacting, storing value, and launching new products on blockchain systems. As a result, we’ll be keeping a close eye on the situation and assisting where we can.”
Alphabet controls the internet, and it is spending billions to maintain its competitive advantage while the metaverse takes shape. It’s a low-risk approach to put money behind this possibility.
2. Take-Two Interactive
A top video game stock should also be considered by investors. Thousands of employees work for these companies to create immersive, digital settings that gamers desire to spend time in. The skill set necessary to create these persistent, 3D virtual environments is unique to video game makers.
During the last five years, Take-Two’s headcount has grown to 5,046, and the company continues to invest in top programming talent as the $233 billion video game industry grows.
On the digital entertainment side Take-Two’s Grand Theft Auto franchise appears to be a basic form of what the metaverse could be. So far, 160 million copies have been sold. The game’s online multiplayer mode, which functions as an open-world sandbox, continues to be popular.
While conversing with pals, players accomplish in-game chores to get rewards, and they spend a lot of money on in-game things while having fun. From fiscal 2017 to fiscal 2021, Take-Two’s recurrent consumer spending, or in-game revenue, more than tripled to $2.3 billion.
Meta Platforms recently announced that Take-Two’s Rockstar Games studio is adapting Grand Theft Auto: San Andreas to work on Oculus’ Quest 2 virtual reality technology, highlighting the possibilities for Take-Two.
Take-Two Interactive Entertainment has a lot of long-term potential. This top gaming property, which already acts as a permanent, shared environment, should skyrocket in value, boosting Take-Two shareholders.
3. Meta Platforms
The social network company is a no-brainer tech stock to consider here, thanks to its 2014 acquisition of Oculus and its recent move to break its reporting categories into a series of applications and reality labs (the metaverse).
The reality labs sector reported a large operating loss of $10.2 billion in 2021, despite only generating $2.2 billion in revenue. While this may not appear to be a compelling cause to buy the stock, the fact that the loss has touched the bottom line demonstrates CEO Mark Zuckerberg’s commitment, as well as Meta’s financial capabilities, to invest in this developing opportunity.
With the exception of Nvidia CEO Jensen Huang, Zuckerberg is probably the most vocal proponent of the metaverse in the business sector right now. “We’re concentrating on the basic technology and software that are required to create an immersive, embodied internet which allows greater digital social experiences than anything that exists today,” he stated during the Q4 earnings call.
On Quest and Oculus Rift virtual reality systems, Meta has previously released Meta Avatar software development toolkits for Unity Software developers. Meta is positioning itself to be a key distribution system in the metaverse for digital goods, similar to how Facebook and Instagram are already serving as key channels for brands to advertise to billions of users across these platforms.
Its latest partnership with the NFL to let users customize their avatar with digitally licensed clothing demonstrates how Meta is trying to position itself to be a key channel of distribution in the metaverse for digital goods, similar to how Facebook and Instagram are already serving as key channels for brands to advertise to billions of users across these platforms. The metaverse is just another way for Meta to make money from its many social media platforms.