Metaverse Stocks: Key Takeaways
- Despite Facebook’s big news, other multiverse stocks are up higher…
- Infrastructure plays might be where the sector really shines…
- Stock #2 already has its multiverse up and running…
Metaverse stocks have been on a run since Facebook changed its name to Meta Platforms Inc. (NASDAQ: FB). Why? It isn’t complicated. Big news in a hot sector is the kind of tide that lifts all boats. Read on for the tickers with big spike potential and WHY I’m tracking them.
- NVIDIA Corporation (NASDAQ: NVDA … read my analysis here)
- Roblox Corporation (NYSE: RBLX … read my analysis here)
- Autodesk, Inc. (NASDAQ: ADSK … read my analysis here)
- Meta Platforms Inc. (NASDAQ: FB … read my analysis here)
- Microsoft (NASDAQ: MSFT … read my analysis here)
- Fastly (NYSE: FSLY … read my analysis here)
- Roundhill Ball Metaverse ETF (NYSE: META … read my analysis here)
Table of Contents
- 1 What Is the Metaverse?
- 2 What Are Metaverse Stocks?
- 2.1 Metaverse Stocks to Watch
- 2.2 Metaverse Stock #1: NVIDIA Corporation (NASDAQ: NVDA)
- 2.3 Metaverse Stock #2: Roblox Corporation (NYSE: RBLX)
- 2.4 Metaverse Stock #3: Autodesk, Inc. (NASDAQ: ADSK)
- 2.5 Metaverse Stock #4: Meta Platforms Inc. (NASDAQ: FB)
- 2.6 Metaverse Stock #5: Microsoft (NASDAQ: MSFT)
- 2.7 Metaverse Stock #6: Fastly (NYSE: FSLY)
- 2.8 Metaverse Stock #7: Roundhill Ball Metaverse ETF (NYSE: META)
- 3 Conclusion
- 4 One Platform. One System. Every Tool
What Is the Metaverse?
What’s the metaverse? It’s the stuff of science fiction — literally!
Neal Stephenson invented the term in his 1992 book “Snow Crash.” In the book, the metaverse was a simulated reality…
The versions that have tech giants excited get a lot more complicated.
They involve going to virtual stores and concerts. And they pull in fitness, work, and education. They work with augmented reality and other technologies to feel like real life.
There’s a huge difference between going to an exercise class and attending one virtually…
Imagine a world where they were similar experiences. That’s one possibility of the metaverse.
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What Are Metaverse Stocks?
Versions of the metaverse are already out there. In fact, a couple of stocks on this list are doing what I just covered.
Roblox (NYSE: RBLX) is an online gaming platform that lets you build worlds for other users. Microsoft (NASDAQ: MSFT) has been working on virtual worlds since Xbox released its first Halo game.
What does this mean for traders? We don’t need to get too deep…
FB has given us one sector-wide news catalyst that’s still sending out shockwaves. And it sounds like there’s more to come.
Metaverse Stocks to Watch
You should know the drill by now. But if not, note that these are NOT metaverse stocks to buy, just stocks to watch.
We’re interested in trading these stocks, not trying to predict the next 1,000% gainer.
That’s a good thing when we’re talking about something as hard to pin down as the metaverse…
Just imagine it was 25 years ago, and we were talking about the companies building the internet. If we were picking stocks, we probably would have all invested in Netscape!
That isn’t what we do here. The trading approach I teach is based on staying current with the market, not luck.
More important is why I’m watching these stocks. That’s what I want you to study most.
Now, let’s break down my top metaverse stock watches. This is how we prepare for the next time this sector runs…
Metaverse Stock #1: NVIDIA Corporation (NASDAQ: NVDA)
When we’re talking about metaverse-related stocks, I’m looking at the company building the foundation.
NVIDIA invented the modern GPU, which is used to create high-level computer graphics. Kind of important when we’re talking about fully immersive worlds, right?
The chip manufacturer already entered the multiverse space in a big way. NVIDIA Omniverse connects separate multiverse projects into a shared virtual world.
This kind of infrastructure is a big-picture play. Imagine if you had to log onto a separate internet every time you wanted to switch websites…
That wouldn’t be very user-friendly, would it?
Even without multiverse catalysts, NVIDIA’s been on a crazy run. In the last 18 months, the worldwide chip shortage has created a stupid amount of demand…
When the world went online in March 2020, their chips became more valuable than ever before. So it shouldn’t be a big surprise that this stock is up more than 500% over its March 2020 lows!
Its pricey status doesn’t stop it from making big moves. Check out that 10% earnings gap up it had on November 18…
If the multiverse provides more demand, this stock may have room to run.
Metaverse Stock #2: Roblox Corporation (NYSE: RBLX)
You might not know what Roblox does, but chances are that your kid will.
This virtual world builder was used by 50% of the 15-and-under set in 2020.
Guess what? It’s still growing.
In its second-quarter 2021 earnings report, Roblox claims 46.6 million daily users. It’s beating other online gaming platforms like Minecraft and Fortnite.
It’s doing so on the strength of its concept. There are over 40 million user-created games in the Roblox universe. It’s on track to pay its mostly-teen developers $500 million in 2021.
It has a digital currency, is adding NFT-like items, and is working on more realistic avatars.
This sure seems like the metaverse, doesn’t it?
Roblox might have a bright future, but let’s talk about right now. The stock has had a wild November, gaining over 40% on strong earnings.
We’ve featured RBLX swing ideas on the SteadyTrade Team in the past. Some are paying off now.
The market is beginning to realize that this stock has more room to run.
Metaverse Stock #3: Autodesk, Inc. (NASDAQ: ADSK)
Here’s another metaverse infrastructure play.
Autodesk’s first big product was AutoCAD. This computer-aided design program soon became the standard for architecture and engineering models…
They’ve been building the 3D worlds that the metaverse will use for a long time.
In recent years, it’s built a suite of products geared for virtual reality and augmented reality. And these products are generating growing profits.
It jumped 10% in October. With a major catalyst, it might move even more.
Metaverse Stock #4: Meta Platforms Inc. (NASDAQ: FB)
Here’s the metaverse stock that everyone’s watching — the company formerly known as Facebook!
At least in the short term, FB’s name change has helped its stock.
The company had been reeling from a whistleblower’s disclosures in October. The stock was in the midst of its first downward trend since March 2020.
The metaverse pivot in late October stopped the bleeding. In the three weeks following, the stock has gone as high as 10% above that low.
Is it the best metaverse stock?
I don’t know. But FB is trying for the title. The company plans to spend $10 billion on its metaverse division in the rest of 2021 alone.
It also announced a new virtual reality headset in October. It’s making progress on its first AR-capable smart glasses.
FB might have more surprises in store.
Metaverse Stock #5: Microsoft (NASDAQ: MSFT)
Xbox is one easy answer for Microsoft’s metaverse plans.
But look under the hood. MSFT is actually a metaverse infrastructure play.
Microsoft Azure is one of the biggest cloud computing services out there. And now it’s being used for the building blocks of the metaverse.
The stock has responded. Since the beginning of October, MSFT is up over 20%!
The tech giant has a lot of irons in the fire. It’s only a matter of time until another one heats up.
Metaverse Stock #6: Fastly (NYSE: FSLY)
FSLY went on an awesome 2020 run — hitting a 900% high off of its March 2020 lows.
It’s come back to earth in 2021. But it may have a bright future ahead.
The metaverse will take a lot of data. Cloud computing services like Fastly will need to store and deliver it.
Metaverse Stock #7: Roundhill Ball Metaverse ETF (NYSE: META)
Are the stocks on this list too pricey? This metaverse ETF might be the way to go.
All of the stocks on this watchlist except FSLY are in its top 10 holdings.
It’s starting to get some heft. It crossed $250 million in assets under management in early November…
It crossed the $500 million mark two weeks later! If this sector heats up, META might cook along with it.
Like a lot of new sectors, multiverse stocks call for a wait-and-see approach.
That’s why we make and maintain watchlists like this. We’re preparing for the moment when big news hits…
We’re getting to know these stocks. When a good setup comes along, we’ll be ready to dive right in!
I don’t want you to copy my watchlist. I want you to understand my approach…
Then make it your own.
What do you think about the stocks on this watchlist? How about the multiverse as the next hot sector? Let me know in the comments — I love hearing from my readers!