Metaverse Stocks to look out for
Meta Platforms Inc. (FB)
Meta CEO Mark Zuckerberg is so committed to shifting the company's priority to the metaverse that he changed the name of the company. Zuckerberg announced an initial $10 billion investment in metaverse development, and Meta recently received many patents related to technology that uses metaverse users' biometric data to help generate what they see and perceive in the virtual world. Meta's Oculus and Horizon virtual reality subsidiaries will also likely play a large role in its metaverse push. The company plans to monetize the metaverse via virtual commerce and advertising revenue streams.
Unity Software Inc. (U)
Unity Software owns one of the two main 3D Video Game engines, which allows designers to customize how video game players move and interact within their games. The company's non-gaming business serves the industrial, architectural, animation and engineering industries as well. In November, Unity acquired parts of Weta Digital, the visual effects studio that helped create the "The Lord of the Rings" movies. "What we want to try to do is have your average 14-year-old to be able to do what Peter (Jackson) did in creating Gollum and putting that character in the metaverse," Unity CEO John Riccitiello said of the deal.
Autodesk Inc. (ADSK)
Autodesk makes software used to design buildings and goods. Engineers and architects use the company's Revit building information modeling program to create virtual models of structures, and Autodesk Rendering can transform those models into a virtual reality setting. About 70% of Autodesk's business comes from design software for architecture, engineering and construction, or AEC. Autodesk has a suite of products designed specifically for building VR and augmented reality 3D animations and buildings, a perfect fit for metaverse construction. In the third quarter, Autodesk's total billings increased 16%, and AEC segment revenue grew 22% to $511.1 million.
Microsoft Corp. (MSFT)
Microsoft may be the early leader in the professional metaverse. The Microsoft enterprise metaverse aims to integrate the "internet of things," digital twins and mixed reality to help Microsoft grow its professional software market dominance. The company also made an aggressive move into the social metaverse space on Jan. 18, when it announced a pending deal to acquire video game giant Activision Blizzard Inc for $69 billion. The Activision deal would give Microsoft instant access to 400 million monthly active gamers, some of whom already spend money in the digital world. The company's growing cloud business also gives it major metaverse network scale advantages.
Roblox Corp. (RBLX)
Roblox is an online entertainment platform that allows users to develop games. The platform may be the closest thing to a functioning metaverse today. Roblox is essentially a video game that has about 50 million daily active users, its own Digital currency and a range of unique virtual experiences. Roughly half its user base is under the age of 13, placing the company in a good position for the future.