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Three metaverse stocks to keep on your watchlists

Three metaverse stocks to keep on your watchlists
Three metaverse stocks to keep on your watchlists

The technological revolution, unlike anything we’ve seen so far, best sums up the promises made about the metaverse. At its core, it represents a set of virtual worlds, designed by companies and individuals with the aim of changing how we communicate and interact socially and professionally.

This new opportunity is estimated to be worth trillions of dollars, but whether it reaches its potential is a subject of various debates. The next three stocks are likely to be the leaders in the new space, so it pays to keep a close eye on them.

Snap (NYSE: SNAP)

Snap is the parent company of Snapchat, a popular social media platform focused on camera technology. They have a unique twist on the metaverse that could put them in the driver’s seat if the technology took off.

Snap’s goal is to blend the virtual world with the real world using augmented reality via wearable technology. More specifically, augmented reality will display digital experiences in the customer’s vision as they perform their daily activities. This can be achieved with wearable “Spectacles” glasses designed by the company.

The stock is currently trading in a descending channel below the 20-50-200 day simple moving averages (SMAs) in search of a break above the resistance lines. The stock’s performance in 2022 is not stellar, but the investment environment at the moment is not in favor of tech stocks.

Three metaverse stocks to keep on your watchlists
SNAP 20-50-200 SMA line chart. source. Finviz.com data. see more stock here.

Wall Street analysts are giving the stock a moderate buying, and they expect the average share price over the next twelve months to be $53.41. This would represent a possibility 59.10% increase From the current trading price of $33.57.

Three metaverse stocks to keep on your watchlists
Source: TipRanks

The company’s moniker lies in the new technology as previously known Facebook changed its name to reflect the company’s changing strategy towards new social and digital models.

Meta currently has $16 billion of cash ready to be deployed in new digital currency and token projects, and the new market is likely to take center stage in future investments. The company’s goal is to create new models through Reality Labs that will offer consumer hardware products such as the Meta Quest, the Facebook Portal, and various wearables.

In particular, on March 18, Finbold reported that Meta had filed 8 trademark applications including trading cryptocurrencies within the metaverse. This was pointed out by licensed metaverse trademark attorney Michael Kondoudis who stated:

“These filings reflect the company’s strategy to move into the metaverse. It is clear that Meta has important plans for the virtual economy that will drive it.”

The stock did well until February 2022 when geopolitical tensions and inflation began to rise. Tech selling has affected the stock’s performance and it is currently trading slightly below all SMA’s in search of a catalyst to push the stock higher.

Three metaverse stocks to keep on your watchlists
FB 20-50-200 SMA lines chart. source. Finviz.com data. see more stock here.

Analysts give the stock a moderate buy rating, and expect the average price over the next twelve months to be $325.48. The price will probably have an extension 51.99% change percentage From the current trading price of $214.14. More bullish analysts see the share price reaching $466.

Three metaverse stocks to keep on your watchlists
Source: TipRanks

Roblox (NYSE: RBLX)

Roblox is a technology company that runs a common human experience platform. In essence, this platform allows users to interact with each other, exploring and developing user-generated and 3D experiences. The company boasts that more than 50 million people use their platform every day to learn, connect and play.

Roblox reported in February 2022 that it had revenues of between $204 and $207 million, which is a 60-63% increase year-over-year. Key metrics are 28% more users on their platforms and 21% more time spent on the platform over the same period last year.

The stock did not perform well as it lost more than 48% of its price compared to the beginning of the year. All SMAs have been above the stock price for some time, due to heavy selling lately.

Three metaverse stocks to keep on your watchlists
RBLX 20-50-200 SMA line chart. source. Finviz.com data. see more stock here.

The stock is given a moderate buy rating with the next 12-month average price seen by analysts at $68.64, a potential increase of 59.63% over the current trading price of $43. The highest price analysts see in the next 12 months is $108.

Three metaverse stocks to keep on your watchlists
Source: TipRanks

According to Bloomberg information, the metaverse industry could be worth $800 billion by 2024, at a compound annual growth rate of 13.1%. This means the opportunity could be worth $1.6 trillion by 2030.

Such predictions and hype around technology potentially provide opportunities for growth, unlike anything seen before. Augmented reality and new virtual worlds can become a reality, and if so, these stocks will take advantage of the new trends.

Not giving an opinion: The content of this website should not be considered investment advice. Investing is speculation. When investing, your capital is at risk.

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