Although the Metaverse is not a novel notion, the widespread acceptance of its future possibilities is. From an investing perspective, the Metaverse is a collection of several cutting-edge technologies in its virtual environment. In this instance, the Metaverse offers a means for individuals to interact with others in ways comparable to and distinct from real life.
In light of this as a backdrop for where virtual and augmented reality may be headed, metaverse stocks and, consequently, metaverse penny stocks are a greater focus on the stock market today.
In this article, we explain the Metaverse and how you may profit from this technology from an investing standpoint. We also explore the top 10 Metaverse penny stocks to purchase in 2022.
The Metaverse is a technology that merges the digital realm and the physical world. This mix provides an experience that engages all the human senses. To elaborate, video games and virtual reality have been elevated to the next level.
Facebook has garnered much credit for coming up with the idea and building the technology. However, many more firms are also working on their version. Below, I've highlighted some metaverse stocks.
Before you learn how to invest in Metaverse equities, you should comprehend what this new idea involves. The Metaverse is, in a nutshell, a collection of virtual environments created to facilitate social interaction.
Each user will have their avatar and will be able to interact with various virtual experiences using improved human-computer interface technology, such as augmented reality and virtual reality headsets.
That stated, the Metaverse is in its early phases. Therefore, maybe the most excellent Metaverse stocks to invest in today are currently thriving but whose development is expected to be bolstered further by this digital universe.
10 Metaverse Penny Stocks You Should Consider in Your Portfolio
1. Meta Platforms Inc. (FB)
Any discussion on metaverse stocks needs to start here. Founder Zuckerberg changed the name of Facebook to Meta Platforms, after all, since he was so sure that the Metaverse would be the next chapter in his firm's history. The market is, to put it kindly, exceedingly skeptical: the Facebook stock is down almost 46 percent year to date as of May 24. In the foreseeable future, most of Meta's revenue will continue to come from Instagram and its heritage Facebook services. Investors say Meta's virtual reality goals aren't prudent. However, Zuckerberg's prior capital allocation initiatives, including the acquisitions of Instagram and WhatsApp, have been highly profitable. For investors prepared to bet on Zuckerberg again, FB shares appear tempting at less than 16 times this year's anticipated earnings.
2. Meta Materials Inc. (MMAT)
Meta Materials Inc. might be a significant participant in the metaverse penny stocks business. The business develops innovative technologies by studying and manipulating light and energy. The website, for example, provides information on holography, and other examples include AR glasses and functional surfaces.
Meta Materials focuses on developing an output at a lower cost and more sustainable. And it's in love with the concept that outstanding achievements in innovation have come from the manipulation of basic materials. Examples the industry cites are the Stone Age and Bronze Age, etc.
It serves several industries, including the Automotive, Consumer Electronics, and Aerospace/Defense sectors. In addition, Meta Materials has so many probable scientific and technical advances. And it focuses on delivering those to consumers and other huge enterprises.
Only a few factors prevent it from being an excellent Metaverse penny stock pick. However, it may not participate in the Metaverse. Moreover, the coincidence of the name intrigues me. Facebook changed its name to Meta and is developing the Metaverse, and this is sensible.
This corporation, sometimes known as Meta Materials, is a technology company. As far as the public is aware, the two have no relationship. Still, one never knows. There may be activity occurring in the background. Even if there isn't, Zuckerberg's rebranding has generated significant awareness for Meta Materials.
3. Microsoft Corp. (MSFT)
Microsoft is another of the Big Tech companies with a substantial metaverse presence. Microsoft has the HoloLens headgear, for starters. HoloLens is primarily a device for businesses. It costs several thousand dollars and is meant to assist with mixed-reality applications in settings such as factories, real estate, virtual communications, and 3D printing. Microsoft may be able to incorporate virtual reality technology into its game sector over time. Microsoft is already a leader in the console market, and with its future acquisition of Activision Blizzard Inc., it should further increase its gaming reach (ATVI). Microsoft is not a pure play on the Metaverse. However, if virtual reality and gaming applications continue to gain traction, they should be able to capture a significant portion of the entire metaverse income pie.
4. Immersion Corp. (IMMR)
Immersion is concerned with touch feedback and haptics, and this technology allows you to experience the digital world as if it were real. This penny stock was established in 1993 and had its headquarters in San Jose, California.
Currently, it creates haptics for game consoles, mobile devices, and automobiles. In addition, it is developing products with StrikerVR.
These devices contain aids for a virtually realistic environment. For instance, they are developing a virtual rifle that feels identical to the actual one and other recreationally-oriented things. Such a baseball bat and a fishing rod will make you feel like you are participating in the sport.
5. Alpha Esports Tech Inc. (APETF)
Several firms on this list of penny stocks have direct or indirect ties to the Metaverse. If you've been researching this new business, you're likely aware that esports has been a pioneering force from its inception. During the past several weeks, the market has shown increased interest in businesses such as Alpha Esports. For example, although most of the market declined last week, APETF shares moved in a narrow range between $0.18 and $0.23.
Alpha is an esports startup whose business plan is centered on its GamerzArena platform. Since the firm went public earlier this year, it has created many ties and connections with other organizations, and these include Notre Dame University, Syracuse University, and Penn State University.
In addition to The New Jersey Devils, The Vancouver Whitecaps, Barstool Sports, and ESPN Radio, Alpha has created partnerships with several other organizations. This quarter, Alpha joined this expanding list. This resulted from transactions with EEG labs, a subsidiary of Esports Entertainment Group (NASDAQ: GMBL). The duo will create a new vision technology system for GamerzArena competitors. By adding Heavy Chips Casino and Sports Betting, Alpha also added adult and iGaming to its portfolio.
However, one of the most recent events has placed Alpha and its role in the Metaverse in the limelight. The business started at the end of last month and will offer augmented reality-based experiences that combine real-world and Metaverse ecosystems. Specifically, Alpha intends to accomplish this through its subsidiary Paradise City Gaming.
6. Unity Software Inc. (U)
Unity is the designer of one of the two key video game engines, the other being Unreal Engine. Unity enables game creators to create high-quality graphical material compatible with all platforms, including mobile devices, gaming consoles, computers, and virtual reality. Currently, Unity has an estimated 70% market share of the mobile gaming business. Over time, Unity should be able to harness its leadership position in existing games to achieve success with the Metaverse and other virtual and augmented reality applications. In addition, Unity is creating additional applications for its graphics tools, such as video animation, architecture, and e-commerce. Consider 3D representations of a person's physique for e-commerce, making it simple to virtually try on clothing or other accessories and make a purchase decision. This technology category is still in its infancy, but Unity is one of the pioneers in making it a reality.
7. Blue Hat Interactive Entertainment Technology (BHAT)
Blue Hat Interactive is one of the additional metaverse penny stocks gaining popularity this week. Similar to MMAT, BHAT shares have been under pressure recently, and it has since reversed course to begin this week. The firm produces mobile gaming and augmented reality education platforms and solutions and offers data center services. AR and online gaming are soon becoming "must-haves" for investors in metaverse stocks.
This week, Blue Hat released its Q3 results, including an extensive update on the company's sales growth. Specifically, sales growth over the preceding quarter and nine months soared to $13.3 million. This was an increase of about 230% compared to the previous year's period. At that time, the company's sales were barely $4 million. In addition, the gross profit increased by more than 90 percent compared to the same period last year. This increase was attributable to its IDC business, supported by mobile gaming and IT services.
"We continue constructing an interactive entertainment platform that includes mobile games, augmented reality toys, and an immersive education curriculum. We are happy with the better bottom-line performance for the third quarter of 2021, as CEO Xiaodong Chen noted that we have continued to integrate these firms into Blue Hat's operations.
8. Autodesk Inc. (ADSK)
The graphics software business Autodesk is not a pure metaverse play. Nevertheless, it is already a massive, very profitable corporation with a metaverse aspect that provides more upward potential for the stock. Autodesk's primary offering is software that offers professionals sophisticated design tools. Architects and others use Autodesk to develop plans for buildings, industries, skyscrapers, etc. The industrial perspective is particularly intriguing given businesses' rising use of digital twins. In the digital world, a digital twin is a virtual representation of a real-world object, such as an assembly line. Engineers can experiment with virtual items without jeopardizing the current physical infrastructure. As these augmented-reality applications gain traction, firms such as Autodesk, which develops the underlying modeling software, could be well-positioned for expansion.
9. Hall of Fame Resort and Entertainment Co. (HOFV)
The Hall of Fame utilizes football's popularity. It blends football, fantasy football, gaming, and technology focused on the user experience. This is done to give clients a distinct impression and understanding of the organization.
It features a resort with a football legends motif. It has even introduced non-financial rewards for gamers and characters. It appears that the resort has a lounge where gamers compete. In addition to a bar and grill, the hotel, and Hall of Fame Village, Hotel bar, are all on-site. Given the nature of their company, it is probable that they will also engage in metaverse experiences.
10. Matterport Inc. (MTTR)
Matterport is another firm that performs a function comparable to that of Autodesk. Matterport's distinctive offering is the creation of augmented reality experiences for real estate. Matterport sells specialized cameras to building owners, who upload high-definition images of their property. Matterport generates a 3D depiction of the area, which clients subsequently utilize for tours and property showings, among other applications. This is essential for the development of online real estate markets. Especially in today's world of remote work, the ability to view a property without physically visiting it can be an invaluable service. However, Matterport has had difficulty monetizing its company to date. The adoption of a subscription-based business model has resulted in a precipitous decline in the value of the company's stock in recent months. However, the long-term business strategy is promising, and if Matterport's management can improve its execution, the company's stock might be positioned for a strong rebound.
Are Metaverse Stocks a Worthwhile Investment?
The Metaverse is one of the decade's most fascinating projects, with enormous development potential.
As with any other asset class, however, even the top Metaverse stocks on the market need extensive study and due diligence before purchasing.
Advantages of Metaverse Stocks
Here are the possible advantages of investing in the top Metaverse stocks today:
If you are an investor seeking fresh and exciting growth opportunities, the top Metaverse stocks highlighted today may interest you. Considering that this notion is constantly developing, it is impossible to predict what the final form of the Metaverse will look like. This indicates that there are several prospects for investing in the Metaverse.
Since the Metaverse supports several industries, you will have no trouble locating firms that match your investing profile. In addition, you will be able to select companies with a market presence outside the Metaverse.
Including Facebook, Shopify, and Autodesk, most of the Metaverse firms listed before are market leaders in their respective fields.
Although the expansion of the Metaverse might increase revenue streams in new areas, these businesses do not rely only on virtual worlds to generate cash.
Risks of Metaverse Stocks
Any stock investment has a certain degree of risk.
Before investing in Metaverse shares, you need thus consider several vital considerations.
The Metaverse is a speculative technology because of its time-intensive nature. In other words, it is impossible to forecast how long it will take for even the most profitable Metaverse equities to begin generating returns.
Uncertain Future Regulations: Cryptocurrencies and NFTs are interwoven throughout the Metaverse, and the regulatory status of blockchain-based investments is still a topic of debate between financial regulators worldwide. In other words, what rules will govern the Metaverse in the future is unknown.
In other words, the Metaverse is still in development, and associated stock prices can fluctuate erratically.
Therefore, we recommend you pause before investing in the finest Metaverse stocks highlighted today.
Final Thoughts
The Metaverse is anticipated to bring in the next evolutionary phase of the internet ecosystem. However, it is essential to remember that it will take time and more extraordinary technological breakthroughs before this virtual world is entirely accessible and cheap to the general population.
The Metaverse is a relatively new notion and a fascinating area of study now. It's easy to understand why so many investors and corporations are flocking to the market, given that firms such as Facebook/Meta Platforms Inc (NASDAQ: META) broke records last year. There are several digital assets in the Metaverse, such as cryptocurrencies, decentralized finance (DeFi), non-fungible tokens (NFTs), virtual land, and others.
However, this is still a young business, and thus, several related dangers exist. However, metaverse penny stocks may be an excellent place to start if you are seeking high-risk, high-reward investments.
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