4 solid stocks to watch on the burgeoning Metaverse
The COVID-19 pandemic has brought about a major social change and made life dependent on the digital world. The pandemic has taught people to work, learn, shop remotely, order food and other necessities online, go for contactless payments, and limit themselves to indoor entertainment such as playing video games.
The virtual world, or metaverse, that millions globally can access for business, communication, learning, entertainment, and more, is gradually controlling our present and our future.
The future of the Metaverse with huge growth potential
The metaverse is the latest development in the field of digitization. In short, the metaverse is a collaborative and participatory virtual world. Metaverse includes virtual reality, which features continuous virtual environments that exist even when one is not playing, and augmented reality, which fuses elements of the digital and real worlds.
Experts believe that the metaverse has just begun its journey and has huge potential for the future.
According to a recent report by management consulting firm McKinsey, consumer and business use cases for the metaverse are expected to generate $4 – $5 trillion by 2030. Another report from market research firm BlueWeave Consulting shows that the global metaverse market was worth $40.7 billion in 2021 It will experience a compound annual growth rate of 40.5%, generating over $439 billion in revenue by 2028.
The metaverse was taking small steps even some time back but the pandemic gave it a sudden boost as more and more people became dependent on technology. The demand to work and learn from home, or shop and pay bills online, which swelled during the height of the pandemic, is now the new normal.
At the same time, this space increased the adoption of non-fungible tokens and cryptocurrencies. Thus, seasoned investors should keep an eye on businesses that can profit from the expanding Metaverse market.
stock to watch
We’ve narrowed our search down to four stocks whose growth will be driven by metaverse expansion. here they are Apple company. AAPL, Snap Inc. explode, explode, Autodesk, Inc. ADSK and NVIDIA Corporation NVDA. These companies currently hold Zacks at No. 3 (Hold). You can see the full list of Zacks #1 stocks today here.
Apple company. It encourages app developers to include machine learning and artificial intelligence in their apps. A long-term growth opportunity is presented by AAPL’s focus on autonomous vehicles and augmented reality/virtual reality technologies. Over the years, Apple has purchased a number of smaller companies with expertise in augmented reality hardware, 3D games, and virtual reality software such as SensoMotoric, Flyby Media, Emotient, TupleJump, Turi, Metaio, PrimeSense, and Lattice Data Inc. her efforts.
Apple’s expected profit growth for the current year is 3.4%. AAPL reported fiscal fourth-quarter 2022 earnings of $1.29 per share, topping Zacks Consensus’ estimate of $1.26 per share. Apple reported a profit outperformance in each of the last four reported quarters.
Snap Inc. Focused on creating AR devices with Spectacle smart glasses. The company’s AR lenses have been gaining in popularity, particularly since the release of Lens Studio 2. In collaboration with Verizon, Snap unveiled its first Landmarker lens (a completely new tool for superimposing augmented reality to the real world) at the end of 2020. The lens takes advantage of 5G’s ultra-wideband capabilities. From Verizon with SNAP augmented reality technology.
The widespread use of items such as the Scan and the AR Bar stimulates the use of AR-based lenses and provides significant growth opportunities for SNAP. In addition, the introduction of local lenses, which allows for shared and permanent augmented reality experiences across much wider geographies, is expected to increase user engagement.
Snap’s expected earnings growth for next year is more than 100%. Zacks’ consensus estimate for this year’s earnings has improved more than 100% over the past 60 days.
Autodesk, Inc. It is expected to generate long-term gains from its business transition from perpetual licensing to cloud-based subscription services. Top line growth is expected to be fueled by increased demand for Autodesk cloud-based (BIM 360 cloud platform, Shotgun, Fusion Lifecycle), mobile (AutoCAD 360) and design suite solutions. Apart from its online store, ADSK is also benefiting from its investment in digital infrastructure.
Autodesk’s expected earnings growth for the current year is 30.2%. Zacks’ consensus estimate of current year earnings has improved 1% over the past 60 days.
nvidiaThe company’s range of advanced graphics cards has made it a popular supplier of graphics cards and is expected to help the business enter the metaverse gaming market. In this regard, NVDA’s Omniverse is also noteworthy. Omniverse is a cross-platform where live interactions between users and applications happen quickly in real time and virtual reality thanks to its RTX technology.
NVIDIA’s expected earnings growth for next year is 30.1%. NVDA shares have gained 14% over the past 30 days.
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