RBLX - If You Can Only Buy One Metaverse Stock in April It Better Be One of These 3 Names

2024-04-19 06:17:00 ET

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Though artificial intelligence ( AI ) continues to captivate the tech world, you can’t ignore the top metaverse stocks to buy. AI essentially picked up the baton from the metaverse and is now the leading tech frontier. Nonetheless, the metaverse cannot be taken lightly as we advance into a future where virtual experiences and real life are becoming more entwined.

Furthermore, industry forecasts predict the metaverse market to be worth trillions by the end of the current decade. As technology evolves, the metaverse will offer even more refined and immersive experiences, making it a key area for investors looking to tap into the next wave of technological integration and innovation. With that said, here are three of the best stocks to capitalize on the metaverse boom.

Meta Platforms (META)

You’d be remiss if you left out Meta Platforms (NASDAQ: META ) from metaverse stocks to buy list. The company is at the forefront of the metaverse revolution, pumping billions into the project through its Reality Labs division, which focuses on VR technology and software. Though the metaverse’s trajectory has been far from ideal, its massive long-term potential makes Meta an attractive bet in the niche.

With the massive success of Meta’s ‘Year of Efficiency’ and its AI initiatives, it has the impetus to continue funding its lucrative metaverse endeavors. Its commitment to the sector is unmatched, as it funnels billions into commercializing the metaverse. Hence, if the metaverse evolves into the behemoth most experts expect it to become, Meta stands to gain the most. Moreover, the metaverse is just one aspect of Meta’s incredible growth story, which has been on full display for the past couple of years.

Unity Software (U)

Unity Software (NYSE: U ) is another leading player in the metaverse evolution, having honed its powerful graphics for almost 20 years. Not only does it cater to gaming, but its role in powering virtual and augmented reality experiences positions it as a top metaverse stock. Moreover, it continues to expand its scope, spreading its tentacles into sectors such as architecture, design and other areas, facilitating the detailed, interactive environments that define the metaverse.

Despite the current challenges, including a slowdown in the gaming industry, Unity’s trajectory remains positive. The company has grown its top-line at an impressive pace over the years, with a five-year revenue growth rate of 38% . With its role in powering multiple emerging technologies, expect it to continue growing its sales by double-digit margins for the foreseeable future. Also, with a renewed focus on cost efficiency, the company is strategically positioned to leverage the growing demand for metaverse technologies, making it a compelling choice for investors.

Roblox (RBLX)

Roblox (NYSE: RBLX ) is one of the innovators in the metaverse sector, captivating its powerful user base with its build-it-yourself gaming platform. Its robust platform witnessed massive growth during the pandemic, and though it stumbled with tough comps post-pandemic, it’s now back where it belongs.

The company demonstrated stellar financial performance last year, with a 26% jump in sales, coupled with bookings climbing to $3.5 billion , a 23% rise year-over-year (YOY). Moreover, it continues to attract a healthy number of daily active users, which reached 68.4 million, a 22% bump from the previous year.

Furthermore, the company wants to integrate AI to enhance its platform with tools like the Roblox Assistant, enabling users to generate content through natural language prompts. Additionally, it’s looking to optimize its operations through AI while aggressively expanding its advertising capabilities, partnering with PubMatic (NASDAQ: PUBM ) to integrate video ads. Consequently, Wall-Street expects a sizeable 36% bump in its value from current prices, signaling stellar growth prospects ahead.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

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