Analysts still believe the metaverse is a big deal and the future of investing in the metaverse remains bright. According to Contrive Datum Insights, that space looks like this: worth $1.3 trillion Adecco Group by 2030 said to be $5 trillion. Some believe it will be worth at least billions of dollars by then.
I’m a little unsure. The proud plan is meta platform (Nasdaq:meta) did not work as expected. Companies that have invested billions in the concept are now backtracking.
I think of the Metaverse more like a personal transportation Segway than how we will live, work and play in the future.
A Segway is a two-wheeled self-propelled vehicle hailed as a revolution in the way people get around.Some people thought it would bigger than the internet. However, the sales never materialized.
Small and very expensive, the Segway has become a niche vehicle that is perhaps best suited for certain commercial and industrial uses (such as mall security guards and certain airport personnel).
The Metaverse likely has more potential than that, but investors would benefit from being cautious about what they buy. Do not buy stocks that advertise how you will revolutionize the world through the Metaverse. Instead, buy companies that are helping others build this new future. Sellers of pickaxes and shovels to miners rather than the miners themselves. Whether the metaverse is booming or not, they will be the winners.
As such, I believe the following stocks have potential for metaverse investment.
Strong computing power required for metaverse applications You will need a chip that can handle the load. Qualcomm (Nasdaq:QCOM) has been developing such compatibility for over a decade.
Last year, Qualcomm partnered with Microsoft to develop a processor built on the Snapdragon architecture. And while Microsoft has discontinued the Metaverse Special Division, it’s still working on other augmented reality projects. The Mixed Reality Toolkit (MRTK) for Developers and Enterprises is a joint effort between the company, Qualcomm and Magic Leap. Debuted in September.
Qualcomm also establishes $100 million Metaverse Investment Fund. It will fund “developers and companies building immersive experiences in AR, mixed reality and (virtual reality).”
Qualcomm CEO Cristiano Amon Eyes the Metaverse industrial use Beyond social media and gaming opportunities. “There will always be big social networks and consumer games … but the industry is also big,” he told CNBC’s Jim Cramer.he also said Powered by artificial intelligence All about Qualcomm’s business.
Helping others realize their Metaverse dreams will reward Qualcomm investors heavily.
telecommunications giant verizon (New York Stock Exchange:VZ) is a separate company that is not a direct Metaverse stock, but should still be a lucrative investment. Just as a metaverse company needs a chip to handle the computing power needed for AR and VR, it also needs bandwidth to power the experience. That’s what Verizon proposed.
in progress Nationwide rollout of 5G networks Important for applications that provide consumer and mobile experiences.
Today’s communication infrastructure is not sufficient to support the real-world intensive 3D, AR, and VR overlays required by the Metaverse. Verizon’s 5G ultra-wideband network more immersive and realistic Virtual space.
“Working with Meta will explore how Verizon’s (multi-access edge computing) infrastructure can enable centralized XR cloud rendering and low-latency streaming,” said the company’s chief strategy officer. said.
The metaverse becomes a collaborative effort. No company builds all the necessary components. Verizon is probably the best at providing the speed and connectivity that every player needs. Even better, the company’s stock price is incredibly cheap and trades at levels. haven’t seen in decades.
Global X Metaverse ETF (VR)
And this time I think about something completely different. Exchange-traded funds (ETFs) targeting companies focused on the metaverse are probably the next best thing, as there is no pure play in the true metaverse.
Global X Metaverse ETF (Nasdaq:VR) invests in companies that develop and commercialize the Metaverse. To be considered for employment, a company must derive at least the following: half of revenue From the business activities of the Metaverse. As long as they are active in the field, they will also consider “pre-earnings” stocks. Companies that get less than half of their revenue from the metaverse may also participate in his ETF if their main business is in the metaverse.
These criteria seem to include almost every stock on the market. However, the fund currently consists of only 40 stocks.the Top 5 holdings include Nvidia (Nasdaq:NVDA), meta, NetEase (Nasdaq:NTES), coinbase global (Nasdaq:coin), and unity software (New York Stock Exchange:U).
ETF stocks are up 22% year-to-date, outperforming ETF stocks. S&P500. It is also 35% above its November low. Global X Metaverse just launched in May 2022, so he doesn’t have much of a track record yet. But if the future of metaverse investing still looks bright, why not consider adding an ETF to your portfolio?
As of the date of issue, Rich Duprey did not hold (directly or indirectly) any positions in the securities referenced in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.