A digital, three-dimensional world, the metaverse offers an immersive and accessible real-time experience allowing individuals to have social interactions, engage with commerce, and much more. Many tech organizations are trying to bring the vision to life. This world of new opportunities will help build a new way to live and interact in virtual space taking society to the next dramatic step.
But at the same time, public enthusiasm for the metaverse and crypto mining has been waning in the past few months. Many people are stepping away from their screens and getting back into the ‘real world.’ The crypto market experienced a blow that disillusioned the investors. However, these hits on the market may present a good opportunity to buy low. If the metaverse becomes a distant dream, the prices for investing in this market will become lower than they have been in years.
As an investor, if these markets interest you and consider the possibility of these markets taking off in the long run, we have curated a list of leading stocks you can invest in.
Read more: An Experiment on Effect: How Virtual Technologies like Metaverse Transform Our Way of Life
Best Crypto Mining and Metaverse Stocks to Invest In
-
META
One of the first stocks an investor thinks of when it comes to investing in the metaverse is Meta. Facebook has invested a great deal in rebranding and focusing on VR. If the metaverse does take off, investors will be hard-pressed to identify another organization that is heavily invested in emerging as a consumer platform.
Meta’s Reality Labs lost almost $10.2 billion in 2021 and $5.8 billion in the first half of 2022. However, it is important to recognize that Meta is not just Facebook’s version of the metaverse – it also incorporates Facebook, Instagram, and WhatsApp. Even if Meta's VR does not take off, the company is diversified enough to take the blow.
Meta's stock took a nosedive in February 2022 when Apple implemented its new privacy measures for iOS users. These changes made it more challenging for advertisers to dive deep into consumer demographics, one of the primary reasons why advertisers are attracted to Facebook’s platform. These changes cost the company a whopping $10 billion in revenue. While META is yet to recover and put forth a comprehensible strategy in response, if they pivot and mend their revenue streams, it can be perceived as a good time for long-time investors to consider investing in Meta's shares.
-
Microsoft (MSFT)
Microsoft (MSFT) is a no-brainer stock when it comes to the top metaverse stocks in the market. The company’s Azure web service stands next to Amazon concerning market share. Approximately 75% of personal computers around the world operate on Microsoft Windows today. The company’s Teams products are one of the leaders in the world of video conferencing software.
Additionally, Microsoft operates a massively successful video gaming division: Xbox. It also owns Minecraft, which is considered one of the most profitable proto-metaverse spaces. Furthermore, Microsoft is now aiming to acquire the video gaming giant Activision Blizzard (NASDAQ: ATVI). However, Microsoft has experienced a share price dip after a nearly two-year rally. Aided by the pandemic, much of the rally was due to companies running their operations remotely, thus leading to a rise in cloud services.
The early-stage investments of Microsoft in VR technology are leading to some rather impressive contracts. Over time, Microsoft’s size and deep pockets are likely to make them a leader in the race for metaverse market share.
While it is true that MSFT is significantly down compared to last year, it is still up when compared with the pre-pandemic numbers. The organization is in good standing in the eyes of investors. For investors interested in investing in the metaverse, Microsoft stocks are likely to hit on many different angles.
Read more: The Metaverse: How is it Revolutionizing the Way We Shop?
-
NVDA
Underneath the consumer experience of the metaverse lies a tech similar to the chips manufactured by Nvidia Corp. (NVDA). Nvidia chips are heavily employed by bitcoin mining operations. The company is very closely tied to crypto mining and metaverse trends. However, it has not had a great year. The company started 2022 at $301.21, but it gradually slipped down to $136.47 in September.
However, there are multiple factors that are contributing to this revenue loss. Owing to this, the stock value, including the crypto crash, is encountering a decline in consumer demand. There is an overall lull in excitement over the crypto market and the metaverse.
While Nvidia is well-rounded, it has been making up for some of the losses through its new arm of business dedicated to manufacturing electric vehicles. When encountering a surge in interest in crypto or the metaverse in the future, Nvidia stocks are now expected to bounce back in a big way if they maintain their position as the primary manufacturer of the underlying hardware.
-
RIOT
One of the leading Bitcoin miners in America, Riot Blockchain Inc., supports the Bitcoin blockchain through rapidly expanding large-scale crypto mining. Like every other commodity, cryptocurrency is all about supply and demand. When the demand for cryptocurrency witnesses a resurgence, mining operations are integral to meeting the rising demand.
What makes RIOT attractive to many investors is its effort to incorporate green practices more than the competition, as its crypto mining operations are powered by renewable energy. Unsurprisingly, RIOT shares were sitting below $10 until December 2020. However, when the cryptocurrency frenzy began at the beginning of 2021, the shares skyrocketed to $71.33. However, the risk associated with this investment is more than the typical long-term buy-and-hold stock.
Read more: Tech-Related Ethical Concerns Businesses Should Address in 2022
-
SQ
Rebranded from Square to Block Inc (SQ), the organization facilitates many online transactions and is now making moves when it comes to normalizing cryptocurrency transactions. Block enables users to transfer money, receive paychecks, as well as pay bills with cryptocurrency through their Cash App. They are now making moves to add this functionality to digital wallets at large.
With cryptocurrency becoming commonplace, Block is presenting a unique position to facilitate these transactions without consumers requiring to interact with a third-party intermediary. SQ offers a slightly safer investment than other options. It also deals with ‘real’ currencies. So, in case the crypto market never surges back, investors can still have room to pivot accordingly.
In February 2021, SQ stocks were trading for $276.57. In September 2022, SQ’s stock prices are now sitting at $66.33. While these are certain major fluctuations, Block’s diversified business model can be reflected at a higher base price than many other crypto stocks
Key Highlights
-
By leaving cryptocurrency and the metaverse out of the portfolio, an investor could miss out on some of the largest potential growth markets of a generation.
-
The metaverse is also proposing a future that will link people through augmented and virtual realities, employing blockchain technology to create a new digital economy.
-
Potential investors can buy stocks, ETFs, and cryptocurrencies associated with different companies involved in the metaverse.
-
Cryptocurrency and the metaverse are emerging as new and unproven markets. This indicates that the risk associated with them is short-term, but it is equally promising for long-term investors. These indicated that the stocks could make up 5-10% of the portfolio.
-
Both the metaverse and cryptocurrency will have experienced major setbacks in 2022. The strengthening U.S. dollar is also hitting the profit margins of tech companies, particularly as they tend to do a lot of international business.
Read more: How are Tech Innovations helping Businesses to Survive the Economic Downturn?
Averting the Risk in the Cryptocurrency as well as Metaverse Markets
The cryptocurrency and the metaverse market are known to be uncertain and volatile. This makes them a riskier investment option for long-term investors by comparison. However, leaving them out of the investment portfolio could indicate missing out on the two leading potential growth markets. For that reason, it is vital for investors to take advantage of investing tools that can assist them in planning long-term investments while also considering the market segments in case things go haywire.
With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.
A leader in the Technology domain, SG Analytics partners with global technology enterprises across market research and scalable analytics. Contact us today if you are in search of combining market research, analytics, and technology capabilities to design compelling business outcomes driven by technology.
