There has been much debate between Wall Street analysts and consumers regarding the Metaverse. Do people want fully immersive virtual experiences? Will they be able to spend as much time in virtual worlds as they do on their smartphones? And, perhaps most importantly, these virtual experiences can be effectively monetized.
The concept may catch the attention of the world’s biggest companies, apple (AAPL 0.55%)We have yet to confirm any rumors that they are working on a virtual (or mixed) reality headset, but in a recent interview GQ magazine CEO Tim Cook seemed optimistic about the potential of such a device. Some experts even think Apple could make an announcement on his June 5th at the company’s Worldwide Developer Conference.
Cook especially likes the idea of layering the digital world over the physical world, which has the potential to enhance how people communicate and connect. He even said he thinks the combined experience could be better than the real world itself!
His optimism probably comes as no surprise, as Bloomberg estimates put the Metaverse opportunity at $800 billion as early as 2024.
Before Apple can disrupt the virtual reality party, here are two stocks that investors may want to buy now.
1. Meta Platforms take the lead
meta platform (meta 2.19%) It owns some of the world’s most successful social media applications such as Facebook, Instagram and WhatsApp. But investors have been frustrated with the company’s spending on the metaverse over the past 18 months.
The company spent $13.7 billion to develop its vision for the virtual world of 2022, while the recession was also sapping advertising dollars from social media apps. Since then, the company has been working to cut costs (very good news for investors), but Metaverse enthusiasts will be happy to know that this is not an area they plan to cut costs. there will be
Meta’s biggest challenge over the past decade has been its inability to control the hardware devices people use to access social media platforms. For example, in 2021 Apple decided to enforce new privacy rules that shatter Meta’s ability to accurately track users. That means you can no longer sell highly targeted ad spots to businesses.
That’s why it bought virtual reality headset maker Oculus for $2 billion in 2014.
CEO Mark Zuckerberg envisions one billion people in the future using Meta’s virtual world, each potentially spending hundreds of dollars on digital goods and services. But the professional use cases may get the most attention initially. Meta first previewed its Project Cambria mixed reality headset last year. It could replace the typical office workstation by pumping interactive digital content into the worker’s vision, but without engaging with the physical environment around them (often called augmented reality (AR)). can be left on. .
Theoretically, headset wearers could view digital pages much like they would on a laptop computer, but could observe and quickly shuffle multiple pages at once, even while roaming the real world. increase.
We don’t know exactly what Apple is up to, but it’s clear that Meta is currently the leader in the metaverse industry. But even in the short term, there are many other reasons to own a stake in Meta Platform now.
2. Snap takes a unique look at the virtual world
Meta Platforms are experimenting with the possibilities of mixed reality, but they are definitely focused on developing a fully immersive virtual reality (i.e. a “true” metaverse) for social connections. Parent company of Snapchat snap (snap 1.64%)Meanwhile, has become a leader in augmented reality and has begun selling AR-based advertising to businesses with impressive results.
One of the questions cited at the beginning of this article relates to consumer demand for virtual experiences. Well, Snap doesn’t quite see immersive virtual reality as the way to go. The company believes that real-world, physical human connections are key to a healthy experience in the digital world, so it wants to help users go about their daily lives normally.
We designed wearable glasses (actual glasses, not headsets) called Spectacles. It simply enhances the user’s everyday environment by layering AR over real-world vision.
Snap already has a healthy lead in this space through its Snapchat platform, which transforms users’ smartphone cameras into powerful AR experiences. Over 250 million Snap users are already using AR on the platform every day, attracting the attention of advertisers. For example, a user’s smartphone can be turned into a digital changing room where they can virtually try on different clothes and accessories.
European fashion giant Zalando recently introduced AR try-on lenses. This resulted in a 46% reduction in cost per order compared to non-AR ad campaigns. In other words, AR-based ads can generate almost double the sales for the same financial expenditure.
Snap shares are still down 86% from all-time highs, crushed amid tough economic conditions and a sell-off in the tech sector. It suggests the platform will continue to be attractive to advertisers and is in the box seat when it comes to augmented reality. It could be a great time to buy Snap stock.