3 Best Metaverse Stocks to Buy Now

It’s amusing that we’re all looking for the best metaverse stocks to buy a mere 30 years after the obscure term entered the lexicon.

In 1992, author Neal Stephenson coined the term “metaverse,” which envisioned an immersive digital world that would one day leave its fiction-based origins. Few would’ve predicted that the sci-fi concept would blow up and get massive attention from businesses.

The metaverse is a rapidly evolving industry projected to be worth over $800 billion in the future. Moreover, the best metaverse stocks have distinguished themselves as primary among the hottest financial trends and one of the most talked about investment options on Wall Street.

If you’re curious about this investment option, these picks present the cream of the crop.

The metaverse is a rapidly growing industry projected to be worth nearly $800 billion by 2020. Recently, Citi released an updated report on this topic and projects that it could reach between 8 trillion dollars or more in 2030 if it continues at its current rate. These are the three best metaverse stocks out there today.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) is arguably the pick of the metaverse facilitators that should profit from the success of whichever business makes strides in the nascent industry.

Nvidia designs and manufactures cutting-edge graphics processing units (GPUs) that are likely to play a critical role in metaverse development.

Late last year, it rolled out a virtual content creation platform called the Omniverse that facilitates real-time collaboration. It enables designers, creators and engineers to share their material in a digital space effectively. The platform is already gaining healthy traction among users and is set to grow at an incredible pace in the future.

Furthermore, Nvidia operates a fundamentally solid business that continues to prove naysayers wrong. Its revenues and EBITDA have grown by 34.5% and 51.35%, respectively, over the past five years on average.

The success of its legacy business allows the tech giant to continue investing in new growth verticals such as the metaverse. Another encouraging element for investors is that NVDA stock trades well below its five-year averages.

Unity Software (U)

Unity Software (NYSE:U) is a top video game software development business focusing on creating real-time 3D content. It commands over a 60% share in the video game engine market, establishing itself as a clear leader. Unity operates a fundamentally robust business, with double-digit growth across its top and bottom lines.

Long-term forecasts are remarkably positive on the back of the growing adoption of AR and VR technologies, the growth of the video gaming market and its expansion into non-gaming markets. The company has also been investing in its cloud capabilities to transition towards a recurring revenue model.

Its stock price has taken a substantial hit since the beginning of the year due to the broad-based tech sell-off we’ve seen in response to growing inflation and interest rates. However, its results continue to hold firm despite market headwinds.

In its second quarter, over 1,085 customers generated over $100,000 of its sales in the trailing 12 months compared to 888 in the same quarter last year. Also, its dollar-based net expansion rate stayed at an impressive 121%. There are plenty of positives with Unity stock at this time, and the pull-back has created an enticing opening to pick up one of the best metaverse stocks at a great bargain.

Meta Platforms (FB)

The first time most people would’ve heard about the metaverse concept was when Facebook changed its name to Meta Platforms (NASDAQ:FB) to focus its efforts on commercializing the metaverse.

Since the announcement, META stock has shed more than 50% of its value and now trades at multi-year lows. Its core businesses haven’t been firing as well as they would’ve hoped for, which has weighed down its stock further.

Meta still remains committed to the metaverse project, and its top brass is willing to go all-in on what could potentially be a multi-billion dollar industry.

CEO Mark Zuckerberg recently talked about how the metaverse will likely be a major part of the social media giant’s business in the decade’s second half. He plans to invest a fortune in advancing its metaverse ambitions, which will entail losing a truckload of money over the next several years.

Meta spent a whopping $10 billion in advancing its Reality Labs segment in 2021, which involves developing VR glasses, smart glasses and other pre-release products. Though the business might have to pull back on spending in the interim, it seems clear that this is one of the best metaverse stocks that will become a juggernaut in the metaverse business.

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