Investing in Web 3.0: 5 Metaverse Stocks with Significant Growth Potential

There’s little doubt that the metaverse is one of the biggest buzzwords of the year. The rapidly-evolving technological landscape promises to deliver a virtual world that will become a global phenomenon - with many users around the world ultimately choosing to work, collaborate, socialize, and play fully within their favored metaverses. 

With key industry figures like Mark Zuckerberg so enamored by the prospect of this new frontier that he changed the name of his company from Facebook to Meta, there’s clearly much excitement about the potential of the metaverse. But what does this mean for retail investors and stock market opportunities? 

There are many industries that are encompassed within the metaverse and its sprawling Web 3.0 framework, including both virtual and augmented reality technology, blockchain, cryptocurrency, and video gaming. All of which can expect to see related stocks impacted by the movements companies make in embracing the metaverse. 

Taking this into consideration, let’s take a look at five stocks that may stand to benefit the most from the emergence of the metaverse:

1. Microsoft (NASDAQ: MSFT)

When it comes to blue chip companies, there are few stocks with such an exceptional track record as Microsoft. Despite widespread tech sell-offs throughout early 2022, MSFT has held relatively strong positions throughout the year. Although this may offer fewer opportunities for investors to pick up the stock at a discounted price, Microsoft is a relatively reliable bet to accumulate value as it embraces the metaverse. 

At the beginning of 2022, Microsoft bought Activision Blizzard in a move that laid bare the company’s approach of building into the gaming aspect of the metaverse. The $70 billion deal enabled access to Activision’s leading titles like ‘Call of Duty’, as well as the company’s 390 million-strong monthly active user base.  

Microsoft is also intent on creating mixed reality hardware for its Teams collaboration tool in order to bring mixed reality solutions to the platform. The company has built a reputation for innovation, and it’s likely that Microsoft will throw itself further into metaverse developments as the landscape matures.

2. Nvidia (NASDAQ: NVDA)

At this moment in time, Nvidia may be one of the most exciting metaverse-facing stocks on Wall Street. The graphics cards produced by Nvidia, along with their line of data center chips, are among the essential tools required to power the metaverse. Given the significant computational power required to bring the Web 3.0 landscape to billions of users, it’s likely that NVDA will be front and center in the emergence of the metaverse. 

What’s more is that Nvidia is already powering Meta’s AI Research SuperCluster (RSC) through their graphics cards - illustrating how the company is already immersed in the world of the metaverse. 

Although we can see from the stock’s performance that NVDA has struggled amidst tech stock sell-offs throughout 2022 and recent US government sanctions that restrict the sale of semiconductor chips in China, the metaverse remains a key opportunity for a sustained rebound.

3. Roblox (NYSE: RBLX)

Roblox stands as a strong stock to invest in due to its early movements in building its own iteration of the metaverse. Although the stock itself has fallen sharply through late 2021 and early 2022, there’s sufficient evidence that the platform is growing. In Q4 2021, Roblox reported an average of 49 million active daily users, which showed a 33% rise on Q4 2020. In June 2022, this figure climbed further to 53.3 million daily users. 

Despite its recent decline, Roblox’s market capitalization shows a company that’s still worth more than $21 billion today. This shows the invaluable role that the company has been seen by Wall Street to play in those pioneering early stages of the metaverse. 

The platform has also been an innovator in bringing entertainment to the landscape, having leveraged virtual concerts for renowned artists like Lil Nas X and David Guetta, as well as many more stars.

4. Snap (NYSE: SNAP)

Another stock that appears to be ripe for a discounted pick up is Snap. Formerly Snapchat, the social media platform has reinvented itself as a strong contender to become a metaverse leader. 

Snap has incorporated a range of augmented reality tools into its platform, and through a series of AR investments, the company grew significantly throughout 2020 and 2021. 

As augmented reality technology continues to evolve to become an intrinsic part of the metaverse, it’s likely that Snap will be positioned at the forefront of this innovation. Furthermore, the stock’s 2022 hardships have been offset by a significant active user base. 250 million of its users accessed the platform’s suite of AR tools throughout Q1 2022. 

Among Snap’s leading augmented features stands Lenses, which is set to become flanked by a pair of AR glasses which may act as an early incarnation of what could become metaverse eyewear.

5. Unity Software (NYSE: U)

In a similar mold to Nvidia, Unity Software is set to become a major component in the mechanics that will power the metaverse. The company enables game developers to build high-quality graphical content that has the potential to be used across multiple platforms. 

The reason why Unity is a strong bet to become a star of the metaverse is that the company had a 61% market share of the gaming market at the end of 2021. Although the stock’s more recent performance has been hampered by tech sell-offs and rumors of bungled acquisition attempts, it’s very much sitting pretty to play a central role as the new virtual landscape takes off. 

Although these five stocks are exceptionally well-placed to outperform in the age of the metaverse, it’s vital that investors continually review market conditions surrounding their chosen stocks. The metaverse landscape is still evolving, and things can change fast. 

Although there’s nothing certain about the future of the metaverse, and which companies stand to profit the most, it’s likely that the investors who adapt their portfolios and make shrewd additions to their portfolios early on will reap the rewards later on.