Metaverse Stock: Best Buys 2022
Metaverse stock has become an integral part of the Metaverse concept, forecast to help Web3 replace Web2.0 companies in the not-too-distant future.
Web2 is largely centralised by big technology corporations and relies on cloud and mobile infrastructure and platforms developed by organisations using interactive content as a medium. On the other hand, Web3.0 would rely on virtual economies, networks, and blockchain cloud. Control will be highly decentralised.
This is why the Metaverse concept could be an important part of the evolution of the internet. The Metaverse is an interactive digital universe facilitated by immersive technologies such as virtual and augmented reality. This article offers an extensive insight into what the Metaverse entails and discusses the best Metaverse stocks to buy in 2022 and beyond.
Best Metaverse Stocks to Buy in 2022
Below are the three best Metaverse stocks to buy in 2022 and other honourable mentions. The best Metaverse stock to buy in 2022 is Meta.
One of the leading Metaverse stocks with huge potential you should consider adding to your portfolio is Roblox. After reporting huge earnings in quarterly reports for 2021, Roblox is a top pure-play Metaverse stock ripe for your portfolio.
Lastly, growth investors will find Coinbase is a Metaverse stock that introduces them to the crypto trading space. Other honorable mentions include Nvidia, Lucky Block Autodesk, Nike, Match Group, Unity Software, Microsoft, Walmart Inc., CrowdStrike Holdings, Adobe Inc., Immersion Corp., and Vuzix Corp.
A Look at the Best Metaverse Stocks
Although stocks are categorised as a non-volatile asset class, you should conduct independent research that comprises fundamental and technical analysis. Without that, you risk buying a stock without understanding the issuing authority (companies) behind their valuation.
The Metaverse conjoins several industries and technologies such as spatial computing, digital infrastructure, blockchain technology, artificial intelligence, and virtual experiences, among others. The best Metaverse stocks analysed below consider big technology companies that contribute to the development of this virtual world filled with enormous potential.
By reading this piece, you will find out the roles of the respective individual corporations and their impact on this emerging concept.
Meta Platforms • One of the Leading Metaverse Stocks with Enormous Potential
Facebook is the head of all the Meta Platforms. In October 2021, Chief Executive Officer (CEO) Mark Zuckerberg introduced Meta: A social technology company to the world at a Connect 2021 event.
Meta's aims to bring to life the Metaverse (Web3), which helps connect people, grow businesses, and find communities using smartphone applications, augmented reality glasses, and virtual reality headsets. In February 2022, speaking at a live-stream event called Inside the Lab, Zuckerberg pointed out that Meta was in the middle of a new class of generative artificial intelligence (AI) models which will allow people through speech to describe a virtual world and generate numerous aspects of that world.
In showcasing the power of one of the new AI models called Builder Bot, Zuckerberg appeared on an island as a legless 3D avatar. He gave commands using his voice to create a beach. After that, he commanded the creation of trees, clouds, and picnic blankets for the beach.
This means that Meta is expanding its Metaverse ecosystem in addition to its successful product already in the immersive technology market, Oculus (a virtual reality headset). Overall, Meta aims to build a supercomputer that will cover all aspects of the Web3 evolution. Despite competition from other platforms such as TikTok, Meta Platforms Inc. (NASDAQ: FB) opened on Monday, 3 January, 2022, with a trading price of $338.30.
The stock reached a quarterly high of $343.09 and closed the first quarter of the year on 31 March at $222.26. As of writing, FB was trading in the region of $203.77. This means that you can buy around 49 stocks of FB for $10,000. When the bulls return in the future, FB could be one of the metaverse stocks to brighten your investment portfolio.
Roblox • The Best Gaming Metaverse Stock
Roblox is not only a platform that brings people together through play; it is also a cash cow in the making for users who have great game titles and designs. Roblox is an online game platform that allows novice and professional users (gamers and developers) to try their hands on game development.
Roblox was released in 2006 by David Baszucki and Erik Cassel (founders who created the platform in 2004). As an integral part of the Metaverse, Roblox has soared substantially in popularity. As of May 2022, Roblox has more than 47 million daily active users.
Having hosted many virtual concerts and events, Roblox has a head start. The company is among the first movers who would reap the rewards of venturing into the Metaverse early. Roblox got the ticker symbol RBLX on 10 March, 2021, on the New York Stock Exchange (NYSE). RBLX became a tradable stock on 11 March, 2021.
It opened the day with a trading price of $74.93 and closed the first quarter of the year at $64.57. Roblox Metaverse stock tested $100 for the first time on 2 June and reached an all-time high (ATH) of $103.87 on 4 June. When the bulls returned in the last quarter of 2021, the Metaverse stock reached a new all-time high of $138.77 on 18 November. Since bears follow bulls, RBLX shed 25% of its ATH to close the year on 31 December at $103.16.
RBLX opened on 3 January, 2022, with a trading price of $101.91, reached a quarterly high of $103.79 on the same day, and closed the first quarter of 2022 at $46.24. As of writing, RBLX was exchanging hands at $27.81. This means that a $10,000 investment could buy around 359 stocks of RBLX. The current demographic of Roblox users is below 16 years. However, with the Metaverse gaining strength in 2022, Roblox’s demographic could widen to include young adults and full-time adults. That could impact well on the stock price of RBLX.
Coinbase • Best Metaverse Stock for Cryptocurrency Traders
Coinbase was founded in 2012. You should know that there are more than 100 cryptocurrencies on Coinbase. Blockchain technology and decentralisation are an integral part of Web3 and the Metaverse. Therefore, Coinbase's association with crypto assets easily places the exchange on the list of the top Metaverse stocks to buy in 2022. Aside from buying and selling cryptocurrencies, Coinbase provides other services such as interest accounts through staking.
What's more, on 4 May, 2021, Coinbase opened its NFT marketplace that launched the entire project into the Metaverse. Through this platform, more than 50 million users of Coinbase can interact with digital collectibles and invest in non-fungible tokens (NFTs). In addition to this, Coinbase is still developing technologies that will facilitate the purchase of avatars for games in its Metaverse.
Coinbase Global, Inc. (COIN) became a stock trading asset on 15 April, 2021. COIN opened the day with a trading price of $348.90 and reached an all-time high (ATH) of $368.90 on 9 November. On the last day of December 2021, COIN shed 27% of its opening price to close the year at $252.37. The centralised and decentralised finance market was hit hard in 2022 by the bearish trends of the market after reaching record highs in 2021.
COIN opened on 1 January, 2022, with a trading price of $256.27, reached a quarterly high of $261.63 on the same day, and closed the first quarter of the year at $189.86. As of writing, COIN was exchanging hands at $103.74. With $10,000, you can buy around 96 COIN stocks.
Are Metaverse Stocks a Good Investment?
The Metaverse has created new wealth for several stakeholders (companies, developers, gamers, and you as an investor). Although there are hidden potentials in Metaverse stocks as an investment instrument, you need to conduct independent research before you can risk money on any of them.
Look at the pros and cons before investing in Meta Platform (FB), Roblox (RBLX), and Coinbase (COIN). Metaverse stocks come with numerous risks. No one knows when the Metaverse will reach its peak. Therefore, Metaverse stocks remain largely speculative and can only thrive with the launch of NFTs or other features associated with the Metaverse. Aside from that, various economies across the globe are doing everything they can to regulate crypto, Metaverse, and web3 so that it does not become a haven for money laundering and terrorism financing.
On the other hand, the benefits that could be derived from investing in Metaverse stocks are endless. There is a whole array of companies to choose from.
Author: Raphael Minter
Raphael Minter/ Albert Zuhnden (preferred pen name) is a crypto finance writer, data miner, and fundamental analyst. Raphael has written hundreds of articles about centralized and decentralized financial instruments such as precious metals, commodities, stocks, and cryptocurrencies. He broke into digital finance in 2016 and believes digital assets and blockchain technology is the future of finance.