3 stocks to buy to invest in virtual reality | Motley Fool
Virtual reality (VR) has become one of the biggest buzzwords in the technology world. According to Grand View Research, the VR market was valued at $21.83 billion in 2021 and is expected to grow at a compound annual rate of 15% until at least 2030. As a result, some of the biggest names in technology are dropping their hats into the virtual ring.
Now could be a great time to invest in leading VR companies. Here are three worth studying.
1. Identification pads
No company invests more money in the growth of virtual reality meta pads (dead 5.18%). The company formerly known as Facebook has invested $36 billion in its Metaverse-related efforts in just the past three years. However, its investment in the technology goes back to at least 2014, when the VR headset manufacturer skylight 2 billion dollars.
Meta is now working on her metaverse project, which she hopes will be the future of human communication, like movies like Ready player one. Meta got where it is today by controlling communication portals Facebook, Instagram and WhatsApp – three of the biggest communication tools on the internet. However, with the metaverse, the company aims to control the next internet itself. If all goes according to Meta’s plan, the platform on which other companies build their portals will own.
If Meta can achieve its goal, it will become one of the most valuable companies on the planet. However, this is a pretty big “if” sign and there is a lot of risk involved in the company’s strategy and amount of spending. While Meta has invested $36 billion in VR, Reality Labs VR and the metaverse recorded just $5.3 billion in revenue. Hence, the Meta share price is currently the lowest at seven years.
Meta is a risky investment, but it is the biggest player in virtual reality, and if any company can become a leader in this field in the coming years, they are the best to do so.
If any company can give Meta Platforms a chance to get their money in VR, it is apple (AAPL -3.32%). Although it is rarely the first tech company to enter a new product category, it has a knack for dominating the categories it does enter when it finally does. I’ve done it with iPhone, iPad, Apple Watch, AirPods – all product categories I’ve been in since 2007.
According to respected Apple supply chain analyst Ming-Chi Kuo, Apple could unveil its much-anticipated VR/AR headset in January. Although concrete information about what the headset will feature won’t be revealed until the official announcement, CEO Tim Cook recently quipped that people “will wonder how you lived your life without augmented reality.”
The Apple AR/VR headset is expected to come in at around $3,000, double what Meta charges for the recently released Meta Quest Pro. As it improves on its own augmented reality operating system and its ability to lower the cost of hardware, reports suggest that Apple will start offering a cheaper version of the headphones on the market by 2025.
If VR and AR play as big a role in our future daily lives as Meta and Apple believe, investing in Apple before announcing its headset might be like investing in Apple before the original iPhone launches.
As Apple and Meta compete over the future of human communication in virtual reality, Sony (Sony -1.73%) It has dominated the already popular virtual reality gaming field. The PlayStation VR2 headset will be the only virtual reality option in the $46.3 billion console game market when it launches in February. The other two major manufacturers of consoles, Microsoft And the nintendoThey do not have VR demos and are in no rush to develop them.
Sony PlayStation VR2 headset will be priced at $549 in the US, which puts it right in the middle valveThe $999 virtual reality kit (which requires a separate gaming PC to use) and the $399 Meta Quest 2 headset, which require no additional hardware but have limits in terms of what games can be played.
To use PlayStation VR2, players will also need a PS5. These consoles go for either $399 or $499, but that still puts the whole package at a lower price than VR games on PC and will give gamers a much higher quality experience than the standalone Meta Quest 2 experience.
In the years since its 2016 release, Sony has sold over 5 million original PlayStation VRs. By contrast, Sony has sold nearly 117 million PlayStation 4 consoles, so it’s clear that this headset enjoyed only limited adoption by its target audience. However, the company has significantly improved its technology for the new model, so Sony is hoping for even greater success this time around.
Randy Zuckerberg, former director of market development and spokesperson for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Danny Cook has no position in any of the listed stocks. Motley Fool has positions at Apple and Meta Platforms, Inc. The Motley Fool recommends the following options: long calls in March 2023 worth $120 on Apple and short calls in March 2023 worth $130 on Apple. Motley Fool has a disclosure policy.
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