Sceptical about the Metaverse? Don’t be; it’s already here!
When someone as influential as Mark Zuckerberg changes the name of his company, many people say, “Wait a minute, this is going to be the next big thing.”
And, of course, with Meta’s stock price plummeting, everyone begins to wonder if the metaverse will ever be the next tech revolution.
For those of us who grew up without a smartphone glued to our hands, this is a significant problem; the idea of being constantly wired into some digital universe is just too foreign of a concept.
However, things change once we take a moment to observe broader trends, particularly amongst younger generations who are increasingly blurring the lines between real and virtual worlds.
Through experiences like Decentraland and VR Chat, youngsters are already participating in an early version of the metaverse. Furthermore, metaverse-based gaming platforms like Roblox, which has over 50 million daily active users, are one the convincing evidence that metaverse has arrived.
How Big The Metaverse Will Be
A new era in the digital economy appears to be attracting a lot of attention. Although the metaverse is still a nebulous idea, there are some signs that it might represent a significant potential for investors, developers, and businesses.
It has the potential to revolutionise the entire economic model if it becomes what it promises to be. Be it gaming, social networking, education, entertainment, advertising, healthcare, or real estate, there’s something for everyone.
According to Bloomberg Intelligence, for the foreseeable future, this industry might increase at a compounded annual rate of 13.1%. The market could be worth $800 billion by 2024, roughly triple the current size of the gaming software and services sector. By that metric, it won’t be long before the metaverse may be a trillion-dollar industry.
Source: Early Metrics
How Brands Are Positioning Themselves Into The Metaverse
What’s exciting and encouraging about the metaverse is that nothing about it is completely set in stone. As a result, the metaverse offers enormous potential for companies to grow exponentially. Be it tech firms, game studios, or luxury apparel brands, everyone’s intrigued by the untapped possibilities the metaverse holds.
As a result, everyone is scrambling to devise a strategy for getting into the much-hyped metaverse. Both Facebook and Microsoft have made significant investments in the metaverse.
Facebook revealed its ambitions to invest $10 billion in the metaverse this year alone, and even went as far as changing its identity to ‘Meta’, to bring “the metaverse to life and help people connect, find communities, and grow businesses.”
Since 2016, Microsoft has been developing the Hololens, a metaverse product that allows users to interact in a virtual 3D arena with realistic avatars. Since then, Microsoft has been aiming to build an Enterprise Metaverse to create a virtual world for professionals.
Other tech giants, in addition to Microsoft and Meta, are making significant investments. Apple for example, has been developing its AR products for iPhone/iPad for years and is rumoured to be releasing a VR device shortly.
These notable investments indicate that big tech giants consider the metaverse as an important element of the future.
Beyond Big Tech Giants, Which Stocks Are Making Smart Metaverse Moves
In addition to the big tech giants, many organisations are already developing metaverse products and services that will help shape the future of business, education, gaming, marketing, and healthcare. Let’s explore how they’re constructing the future of various industries.
1. Nvidia
Nvidia has frequently been touted as one of the best semiconductor stocks due to its foray into the world of artificial intelligence (AI).
Now, due to its high-quality Graphics Processing Units (GPUs), its Omniverse Enterprise Metaverse is already being used by thousands of professionals to create a crisp and clear 3D content experience and is expected to be in great demand as the metaverse trend picks up momentum.
2. Shopify
Shopify made two big moves this year that tie into the potential for metaverse commerce. One is the acquisition of the AR App Primer, which allows users to see the first hand effects of their purchase. Secondly, they launched a new NFT platform that will enable digital creators to sell art and other content directly to consumers.
3. Mettaport
Nobody does it better than Matterport when it comes to demonstrating what metaverse stocks can do to help with “real-life” transactions. How? Well, it allows real estate firms to create virtual replicas of their buildings, allowing prospective buyers or tenants to take a virtual tour of the apartment from the comfort of their homes.
4. Roblox
On the surface, Roblox is a popular video game that has roughly 50 million daily active users. However, the thing is, it’s not really a single game.
Roblox uses outside developers to build various games for its users. The firm makes money by selling its virtual currency that players can use to access these games, experiences, and even virtual clothing – like a Gucci bag – for their characters.
5. Autodesk
Engineers, architects, designers, and even students can easily build and construct digital products, services, infrastructure projects, and more in both 2D and 3D using Autodesk’s AutoCAD application.
Users have already begun to use ADSK’s software to design and build virtual worlds for gaming, entertainment, and even education, making it a preferred choice for anyone aiming to build the metaverse and its infrastructure.
What Are The Risks on Investing In The Metaverse?
Investing in the metaverse now carries a high risk. Why? Because it’s brand new! The entire industry is still evolving but at a rapid pace. Nobody knows for sure who will emerge at the top.
Metaverse may undergo several paradigm shifts before the actual winners can be identified. Therefore, investors must diversify their portfolios to minimise risk to avoid backing the wrong horse.
Source: Early Metrics
The other risk relates to the value metaverse is creating. Objectively, Metaverse is not any value trap as companies are continually innovating and developing new products such as dazzling Metaverse technology, full of avatars and a futuristic world using Meta Quest, VR headsets, and AR glasses.
The notion of exploring a virtual world in the Metaverse, teleporting to wherever you want, being whatever you want to be in the form of Avatars, and wearing anything you want to wear is enthralling.
However, companies are yet to successfully integrate blockchain, NFTs and Web3 that are required to establish ownership of your Avatars and digital assets in Metaverse.
Final Words
- Despite all of the dangers we’ve discussed, all of the concerns about the Metaverse, the reality is that we’re becoming a more digital culture, especially after the pandemic, and that trend isn’t going away anytime soon.
- This new way of living life may lead the metaverse to grow quickly if it can actually become what it aspires to be and may create abundant opportunities for investors and corporations.
- For investors who believe in the metaverse, long-term investing in metaverse stocks is relatively less risky, as it is backed by real companies generating real revenues and earnings. However, before diving in, investors should consider the risks mentioned above.
Please note that all the information contained in this article is intended for illustration and educational purposes only. It does not constitute any financial advice/recommendation to buy/sell any investment products or services.
