The Best Metaverse Stocks That No One is Talking About
The metaverse was one of the biggest tech talking points of 2021. It started to become particularly popular after Facebook rebranded to Meta Platforms. This rebrand was a clear sign that Zuckerberg and Co. were going all-in on the metaverse.
Investors established a few companies as the best metaverse stocks to buy. A few examples are Roblox, Unity Software and Nvidia. But, building the metaverse is a gargantuan project. There has to be more than a handful of companies building it. In this article, we’re going to examine some of the best metaverse stocks to buy that no one is talking about.
The Best Metaverse Stocks of 2022
No. 4 Microsoft (Nasdaq: MSFT)
At a $2 trillion market cap, Microsoft hardly qualifies as “a company no one is talking about.” However, many people may be underestimating Mircosoft as one of the best metaverse stocks. This tech giant is poised to impact the metaverse in more ways than one.
First things first, Microsoft recently acquired Activision Blizzard. It completed this sale for around $70 billion. This acquisition has many different implications for the metaverse. First, it makes Microsoft the third-largest gaming company behind Sony and Tencent. It also gives Microsoft control over huge gaming franchises like Warcraft, Call of Duty and Candy Crush. This is all ammunition that Microsoft can use to craft its own version of the metaverse.
For many consumers, gaming will most likely be their gateway into the metaverse. In fact, many online games already act as a metaverse in their own way. Now, Microsoft can use Activision’s database of titles to lure in gamers. Once they are in Microsoft’s ecosystem, it will be much easier to get them to use other Microsoft products.
Microsoft also has a few other products that could help it create the metaverse. It’s one of the rare companies that creates both hardware and software products. It currently produces the HoloLens 2 virtual reality headset. For software, it has its Azure cloud computing division among many other products. Don’t forget that Microsoft also owns Xbox, LinkedIn and Microsoft Office Suite. It has a product for nearly every aspect of the metaverse.
No. 3 Cloudflare (NYSE: NET)
Cloudflare’s main business is edge computing. If you are not familiar, edge computing is a new infrastructure for the internet. On today’s internet, central data centers process most of the world’s data. Large tech giants like Google and Amazon own these data centers. Edge computing moves this processing away from central data centers. Instead, it processes data much closer to where that data is gathered. This reduces latency and improves processing speed. It creates a faster, more efficient internet.
Many growing industries require lightning-fast internet connections. For example, self-driving cars calculate massive amounts of data. They also need to process this information as quickly as possible. Even a split-second lag from a self-driving car can cause a fatal accident. Unsurprisingly, the metaverse will involve processing gallons of data. This is why Cloudflare could be one of the best metaverse stocks to buy.
The metaverse is turning into an incredibly ambitious project. For reference, think of all the data, energy and bandwidth that your computer requires to run a Zoom call. Now, instead of Zoom, imagine this call taking place in a virtual augmented reality world. This is where we are headed. There’s a high chance that this level of computing will rely heavily on edge computing. This puts Cloudflare in a perfect position to benefit over the coming years.
There are a few companies that offer edge computing services, like IBM and Nvidia. However, these companies are more diversified, Cloudflare’s main business is edge computing.
Best Metaverse Stocks No. 2 Matterport (Nasdaq: MTTR)
Have you ever taken a virtual tour of an apartment or home? If so, then you might be familiar with Matterport’s technology. Matterport is one of the world’s leading spatial data companies. It is responsible for taking real-life spaces and creating digital copies. This sentence alone warrants examining Matterport as one of the best metaverse stocks to buy.
An important thing to remember is that the metaverse does not exist yet. Right now, there is a lot of emphasis on “building” the metaverse. For example, Roblox focuses on creating digital worlds from scratch. This has people wondering what the future metaverse(s) will look like. However, it’s possible that the metaverse won’t be a made-up world at all. What if the metaverse looks similar to our real world?
After all, copying the existing world would be much simpler. It would also make it easier to bring consumers into the metaverse. For many people, the concept of entering an unknown digital world can be a little startling. However, what if this “digital world” was just your home? That’s where Matterport would come in.
When talking about the metaverse, there are a ton of unknowns. Due to this, it’s important to keep an open mind regarding all potential scenarios. Either way, I’d definitely keep an eye on Matterport as one of the best metaverse stocks to buy.
No. 1 Immersion Corporation (Nasdaq: IMMR)
Immersion Corporation is best known for creating touch feedback technology. This type of tech is also known as haptic technology. This technology is found in Xbox controllers, car steering wheels and your phone. Immersion’s goal is to enable touch everywhere in the digital world.
So far, the conversation around the metaverse has been focused on virtual reality. The main thinking is that people will have to strap on a VR headset to enter the digital world. This experience focuses on 2 of your 5 senses: sight and hearing. This is enough to make you see and feel comfortable in the metaverse. However, it’s still not the full experience.
There has been little conversation so far about bringing the other three senses to the digital world. Immersion Corporation is one company that’s doing this. Although, there is no word on if it plans to pursue taste and smell as well.
I wouldn’t count on Immersion Corp. playing a major role in initial versions of the metaverse. More likely, it could be a big player down the road when it comes to enhancing the overall experience. Immersion Corp could help during the transition from Metaverse 1.0 to Metaverse 2.0. Even though this might seem like a long way off, it could be here before you know it.
Immersion Corporation currently has over three billion devices using its tech. It has also received 15 industry awards for product design.
The Bottom Line on the Best Metaverse Stocks
The metaverse is one of the most exciting potential new developments in the tech world right now. But it will take a lot of work to build it. And that’s where these companies come in. All of them offer different services or features that will enhance the overall metaverse experience. That’s why these are some of the best metaverse stocks to buy.
I hope that you’ve enjoyed learning about a few of the best metaverse stocks that no one is talking about!