Best Metaverse Stocks to Buy in November 2024

Metaverse stocks are making a comeback following renewed strength in cryptocurrencies towards the end of 2023. A metaverse is a virtual reality world that can be used for multiple purposes.

While its popular use is for gaming, Metaverse platforms can also be used for education, job interviews, and possibly integrated into the banking sector.

According to recent reports, a Metaverse that is uniquely designed for military training is in the making.

In this article, we’ll explore some of the best metaverse stocks to buy for investors looking to capitalize on the growing trend of virtual worlds and online gaming.

From gaming giants to up-and-coming startups, we’ll take a closer look at the companies that are leading the charge.  Here are the best Metaverse stocks to buy in 2024.

What Are Metaverse Stocks?

A metaverse stock is a company that is involved in the development or support of the metaverse – a virtual world or universe that is shared by millions of users.

These stocks can include companies that produce hardware or software for virtual reality (VR) and augmented reality (AR) devices, gaming companies that develop metaverse-related games or platforms, and companies that provide web infrastructure or cloud services to support the metaverse.

As interest in the metaverse grows, so too does the potential for these companies to experience growth and profit.

Investors need to do their research and consider the potential risks and rewards before investing in any metaverse stocks.

Metaverse cryptocurrencies

Metaverse cryptocurrencies, as opposed to stocks, are digital currencies that are designed to be used within the metaverse – a virtual world or universe that is shared by millions of users.

These tokens are used as a means of exchange for goods and services within the metaverse and can be traded on cryptocurrency exchanges. Some metaverse tokens are created specifically for a particular metaverse platform, while others are more broadly designed to be used across multiple platforms.

Discover the best metaverse cryptocurrencies

Metaverse ETF Stocks

A metaverse ETF (Exchange-Traded Fund) stock is a type of investment fund that tracks the performance of a group of stocks that are related to the metaverse industry. These ETFs typically invest in companies that are involved in the development or support of the metaverse – a virtual world or universe that is shared by millions of users.

Metaverse ETF stocks can provide investors with exposure to the metaverse industry without having to purchase individual stocks themselves. By investing in a metaverse ETF, investors can gain access to a diversified portfolio of metaverse-related stocks, which can help reduce their overall investment risk.

Online broker eToro also has smart portfolios that focus on the metaverse. Investors can copy the metaverse portfolio after assessing its performance and setting their desired exposure.

However, as with any investment, investors need to do their research and carefully consider the potential risks and rewards before investing in a metaverse ETF stock.

What companies are in a Metaverse ETF?

METV funds are rebalanced quarterly and may include:

• Several companies, such as Cloudflare and Nvidia, are developing infrastructure essential to the Metaverse.
• Several gaming engines, such as Unity and Roblox, are responsible for creating virtual worlds.
• Tencent, Sea, and Snap have all been pioneers in content, commerce, and social for the Metaverse.

Examples of Metaverse ETFs

There are currently several metaverse ETFs available for investors. Here are some examples:

• The Global X Video Games & Esports ETF (HERO) – This ETF invests in companies that develop or publish video games and esports, which includes companies involved in the metaverse industry.
• The Defiance Next Gen Video Gaming ETF (VIDG) – This ETF invests in companies that develop or support the infrastructure for video gaming and esports, which can include companies involved in the metaverse industry.
• The Roundhill Ball Metaverse ETF (META) – This ETF invests in companies that are involved in the development and use of virtual reality and augmented reality technologies, which are key components of the metaverse.
• The Wedbush ETFMG Video Game Tech ETF (GAMR) – This ETF invests in companies that develop or publish video games, which can include companies involved in the metaverse industry.

Metaverse Penny Stocks

For those who are not aware, Metaverse penny stocks are companies whose shares trade at less than $5 per share, as defined by the Securities and Exchange Commission.

Here are some Metaverse stocks you might be interested in:

• Alpha Metaverse – A stock for exposure to esports gaming
• Blue Hat – Provider of interactive entertainment technology in the Metaverse
• Meta Materials – AR eyewear offered by this Metaverse stock

The low entry costs of Metaverse penny stocks may make them seem like a great investment, but you should also keep in mind that they tend to be very volatile.

There is also an additional risk involved in the penny stock trades on the OTC markets since there might not be enough public information about the company.

The Best Metaverse Stocks in 2024

It is very important to make sure that you research the market thoroughly before deciding to invest, whether you are looking to buy stocks or wondering how to invest in the Metaverse.

It combines several technologies and industries, including but not limited to digital infrastructure, virtual experiences, artificial intelligence, blockchain technology, and spatial computing.

Here are some popular Metaverse stocks that we have analyzed. Discover how they might benefit from the Metaverse and their roles in it.

1. Meta Platforms – Pioneering the Virtual Space

Meta Platforms (NASDAQ:META) Founder and CEO Mark Zuckerberg changed the name of his company from Facebook to Meta Platforms because he was convinced that Metaverse would be the next chapter in the evolution of his company.

Despite tremors in the blockchain industry, Meta partnered with Telefonica to introduce metaverse tech to the elderly. The developed content is accessible via Meta Quest 3 devices, priced at approximately $500 at the time of this writing.

2. Roblox – Metaverse Platform in Expansion

Roblox (NYSE:RBLX) is one of the world’s leading video game ecosystems. Nevertheless, it is mandatory to mention that the company’s product is not just a game in and of itself but more of a platform where users can design their games and content within the Roblox universe.

Since users like to hang out and try each other’s ideas, Roblox has enjoyed strong network effects.

Roblox has a large, engaged community and should benefit from the Metaverse. Big brands are already paying to set up virtual advertising campaigns in the Roblox ecosystem.

Adidas launched its brand on Roblox with digital wearables and accessories. The digital wearables will be available in Roblox marketplace. Official Adidas pop-up stores were also dispersed throughout the virtual world.

Roblox Q3 2023

According to Q3 2023 data, Roblox revenue increased as well as the average new monthly unique players. Compared to Q3 2020, the average returning monthly unique players has almost doubled.

source: Roblox

The average monthly repurchase rate stood at 81% with revenue reaching $713.20 million for the third quarter. The daily active users saw a moderate increase, 70.2 million.

To appeal to higher age groups, Roblox is working on virtual dating, indie movie screenings, and news. If Roblox succeeds in attracting adults to the platform through its experiences, it may be reflected in the stock’s price.

As of December 18:

Market Cap: $27.395B
EPS (TTM): -1.83
YTD: +61.53%

3. Nvidia – Stock with Potential to Power the Metaverse

Nvidia (NASDAQ: NVDA) is another company that could be able to cash in on the creation of 3D content.

Even though its Omniverse Enterprise product has only been available to the public since late 2021, it is already being considered by hundreds of companies and downloaded by tens of thousands of content creators worldwide.

As a result, there is still a good chance that Nvidia will benefit from the metaverse trend. In addition, the company’s highest-quality graphics processing units (GPUs) have always been its bread-and-butter business.

A major upgrade was made to Omniverse. Nvidia offered new applications for developers using universal scene description (OpenUSD) and generative AI for 3D worlds.

The upgrade included a new modular app building, new rendering optimization, and extended-reality (XR) developer tools.

The company is continuing to push the Metaverse while pushing the boundaries of AI technology.

Nvidia’s strategic partnership with Amazon

Nvidia and Amazon Web Services (AWS) announced the expansion of their partnership in 2023. Nvidia DGX cloud is hosted on AWS to provide training for generative AI in multiple language models.

The partnership also includes collaboration on Project Ceiba, which aims to create the fastest GPU-powered AI supercomputer in the world. The supercomputer will make use of 16,384 GH200 superchips.

As of December 18:

Market Cap: $1.208T
EPS (TTM): 7.58
YTD: +200.79%

4. Qualcomm – Major Partnership with Baidu

Qualcomm (NASDAQ:QCOM) designs and manufactures semiconductors and wireless communication.  Virtual realities demand high resources for rendering. Qualcomm’s wireless tech is used to power the metaverse, supporting high-bandwidth and edge computing resources.

In September 2023, China’s internet search engine Baidu announced a partnership with Qualcomm on extended reality to develop a new metaverse platform. The non-binding memorandum of understanding includes a collaboration on generative AI.

Sports, education, and tourism are among the industries that will be in the spotlight for the metaverse platform.

5. Unity Software – Creator of One of the Two Major Video Game Engines

Unity (NYSE:U) is the creator of one of the two major engines, with Unreal Engine being its main rival.

Using Unity, video game developers can create high-quality graphics that run on phones, consoles, laptops, and virtual reality headsets.

It is estimated that Unity has a market share of 70% of the mobile gaming market today. In the future, Unity should be able to leverage its strong position in existing games and leverage that into success with the Metaverse and other virtual and augmented reality applications.

Besides video animation, Unity is developing architecture and e-commerce applications for its graphics software.

Unity Software appoints new CEO

In October 2023, Unity’s CEO John Riccitiello retired. James Whitehurst, former IBM president was appointed by the tech firm.

According to a report by Reuters, the company announced it will cut its global workforce by 3.8% as part of the company ‘reset.’ Unity Software ended an agreement with Weta FX, a digital effects video company that led to the recent layoffs.

The company has approximately, 7,000 employees, which means around 266 individuals will be dismissed.

According to videogamelayoffs, Unity has laid off 1,165 employees since the beginning of 2023.

source: videogamelayoffs.com

As of December 18:

Market Cap: $14.958B
EPS (TTM): -2.33
YTD: +40.97%

6. Microsoft Corp. – Best stock for metaverse technology in 2024

Microsoft (NASDAQ:MSFT)is considered to be one of the biggest tech companies in the world so, it is no surprise that the tech giant has entered the metaverse space. In October 2023, Microsoft completed the acquisition of Activision Blizzard for $68.7 billion.

Activision Blizzard is a video game development company behind titles such as Call of Duty and Candy Crush.

It is thought that the parentship will be used to propel Microsoft’s metaverse endeavors. Activision Blizzard has the technology needed to develop metaverse applications that could increase the tech giant’s presence in the metaverse gaming space.

As well as focusing on metaverse games, Microsoft has increased efforts around its corporate metaverse known as Microsoft Mesh. The application will facilitate an immersive 3D workplace through which colleagues can connect from around the world.

MSFT stock price posted moderate gains over the last year. The share value has risen from $222 in January 2023 to $371 in December 2023. As Microsoft continues its metaverse development, it could be a good stock to watch.

As of December 18:

Market Cap: $2.755T
EPS (TTM): 10.33
YTD: +54.18%

How to Invest in Metaverse Stocks?

It is likely that you now have a good understanding of what the Metaverse is and how you can gain exposure to it.

We recommend eToro, which also accepts US-based investors via its US entity.

eToro is a popular online investment platform that offers investors the ability to trade a variety of financial assets, including stocks, cryptocurrencies, and commodities.

One of the reasons why eToro is a good platform to invest in metaverse stocks is that it offers a user-friendly interface and a range of tools and resources that can help investors make informed decisions.

Additionally, eToro allows investors to buy fractional shares, which can be useful for investing in expensive metaverse stocks.

Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

Note: Only cryptocurrencies eToro customers in the United States will be able to trade on the platform will be Bitcoin, Bitcoin Cash, and Ethereum.

Conclusion

We have taken a look at some of the best metaverse stocks and crypto tokens to add to your portfolio in 2024. Investing in the metaverse is a good way to gain exposure to an emerging technology with great future potential.

However, your money is at risk and it is important to never invest more than you can afford to lose.

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