5 Top Metaverse Stocks in 2024

The metaverse is defined as a digital, three-dimensional world that is immersive and accessible in real-time by an unlimited number of people, enabling social interactions, commerce, and more. Right now it’s more science fiction than reality. However, several technology companies are trying to bring the whole vision to life.

Patience is key here, as the metaverse can take a decade or more to develop. But this is actually good news for investors. The metaverse is still in its early stages, so it’s not too late to invest in metaverse stocks. Let’s look at ways to invest in this exciting space and some of the companies positioned to take advantage of the trend.

Investment in the metaverse

How to invest in the metaverse

Investors can approach this secular trend from several angles. Consider the following non-exhaustive list of potential layers to the metaverse:

Immersive Hardware: Right now, metaverse hardware is pretty much limited to virtual reality (VR) headsets. Popular consumer products currently only incorporate the senses of sight and sound. But metaverse hardware products may also include other senses in the future, such as touch via haptic devices. 3D creation software: Whether it’s building the virtual world’s scenery or creating items that can be bought and sold, the metaverse needs software- solutions for content creation .Interactive platforms: Just as people visit websites via the Internet, there will need to be virtual worlds — interactive platforms — to visit in the metaverse. Connection: The connection will need to be lightning fast to accommodate unlimited metaverse participants in real time. And computers will need to be powerful to render 3D smoothly. Semiconductors: In the same vein, the metaverse’s computing power requirements will be massive and require advances in semiconductor technology. The metaverse will also generate an enormous amount of data that will need to be stored. Security: As people enjoy more activities in the metaverse, their identities and finances will need protection, making cyber security increasingly indispensable.

With so many aspects to choose from, there’s likely a metaverse stock to suit any investor’s style and risk tolerance.

Best Metaverse Stocks to Buy in 2024

Best Metaverse Stocks to Buy in 2024

As previously mentioned, it may take many years for the metaverse to exist in its fullest form. So the best metaverse stocks to buy today are companies that are already thriving, but whose growth will be fueled by the metaverse. Here are some top considerations, in no particular order:

1. Meta

1. Meta

Formally known as Facebook, Meta Platforms (META 0.14%) is responsible for bringing the metaverse trend to the forefront of investors’ minds. Most of the company’s revenue is generated through advertising on the Facebook and Instagram apps. However, Meta Platforms has another part of the business called Reality Labs where it sells hardware devices and VR content. Its Oculus VR headsets have collectively sold more than any other on the market, making Meta a top stock for immersive hardware. In addition, the company is investing billions of dollars to create software and content for augmented reality and VR applications – more than most other metaverse companies can dream of. Therefore, if there is a future in the metaverse, Meta will likely play an important role.

2. Roblox

2. Roblox

Roblox (RBLX -1.07%) is already a virtual world that could be an early stage version of a metaverse platform. Musicians like Mariah Carey and celebrities like Paris Hilton have already hosted live events on Roblox’s platform, perhaps indicating it’s gaining mainstream appeal. A few years ago, the platform primarily appealed to US users under the age of 13, but it has evolved into a global company with an increasingly growing set of older users. The metaverse will likely have multiple interactive platform destinations. But with over 66 million daily active users already, Roblox has a big head start.

3. Microsoft

3. Microsoft

Investors Don’t Think About Microsoft (MSFT 0.46%) as a metaverse stock, but its artificial intelligence (AI) capabilities could be invaluable to its development. Both Meta and Roblox have stated that user-generated content is necessary to bring the metaverse to life. And generative AI applications simplify content creation quickly for everyone. Leading AI company OpenAI partnered with Microsoft because its cloud computing product Azure provides the necessary power and storage to scale AI applications to a massive audience. Therefore, its AI track and its powerful cloud computing product could make Microsoft a metaverse beneficiary.

4. Unity

4. Unity

Unity software (YOU 0.0%) is a leader in the 3D software space. The company estimates that about half of all 3D content today is made with its software. As metaverse content is created, it’s reasonable to expect that a large portion will involve Unity in some way. It is also reasonable to believe that the company can take market share from competitors due to its unique value proposition. Two of its products – Unity Personal and Unity Student – are offered free to content creators just starting out. As these creators succeed, they will likely become paying Unity customers.

5. Cloud flame

5. Cloud flame

Content Delivery Network (CDN) Cloudflare (ONLY 0.7%) is designed with speed in mind. The company claims its network can deliver content to 95% of the world’s population in 50 milliseconds or less. That scale will be useful as the metaverse ramps up. But, as noted before, the metaverse will have other needs, and Cloudflare can address some of these as well. For example, the company already offers cybersecurity solutions, which block 136 billion threats daily. And in 2021, it launched a data storage product that could help meet the metaverse’s big data storage needs.

Metaverse ETFs

Metaverse ETFs to Consider

Maybe you can’t decide which metaverse stock to buy, or maybe you want broader exposure than a single stock. Consider buying a metaverse-focused exchange-traded fund (ETF). One option is the Roundhill Ball Metaverse ETF (METV 1.22%), which includes all five of the stocks already listed here plus dozens more, providing immediate diversification for shareholders.

Another possibility is the ProShares Metaverse ETF (TO -0.13%). Of the five stocks listed here, Cloudflare is the only one that the ProShares Metaverse ETF does not hold. It has fewer holdings than the Roundhill Ball Metaverse ETF. But its expense ratio (fee) is a bit lower, which may make it more attractive to some investors.

Yes, unlike stocks, ETFs are subject to ongoing fees, and these two ETFs are no exception. Therefore, investors should be sure they know how to invest in ETFs before buying stocks.

Where can I buy metaverse shares?

Where can I buy metaverse shares?

To buy stocks and ETFs, investors must have a brokerage account. The best brokers are extremely user-friendly, allowing accounts to be opened without a minimum deposit and also offer no-fee transactions.

Related investment topics

Metaverse cryptocurrencies

What about metaverse cryptocurrencies?

There is still a long way to go with the metaverse trend, and it could take several paths. One question is whether the bulk of the metaverse will be built by corporate entities or with decentralized solutions such as blockchains and cryptocurrencies. For this reason we have already looked at the corporate entities. But since the future is uncertain, it’s worth keeping at least a few cryptocurrencies on your radar as well, because the technology could be useful in the metaverse’s development.

The first is Theta (THETA 7.4%). As a content delivery network, Theta is conceptually similar to Cloudflare. However, it can theoretically deliver metaverse content faster because it is stored physically closer to the consumer. The project began as a way to live stream VR video games and quickly caught the attention of Alphabet (GOOG 1.43%)(GOOGLE 1.42%) and Samsung. Theta’s CDN idea is also patented, mitigating the competitive risk of other decentralized solutions.

The other cryptocurrency to watch is Arweave (AR 8.03%). This team is building what they call the “permaweb,” and its mission is to “preserve knowledge of our past, present, and future with immutable information storage.” Solana (SOL 6.34%), another cryptocurrency project with large data storage needs, has partnered with Arweave, as well as smart contract crypto platform Avalanche (AVAX 6.4%) — big votes of confidence in Arweave’s capabilities.

Of course, Arweave is not the only decentralized project thinking about data storage. But its endowment pool payouts encourage long-term data retention, and that’s a clear distinction here. In many other cases, users pay crypto miners upfront fees to store data for a limited period of time. By contrast, Arweave incentivizes miners to store data forever by paying gradually over time from a donation pool into which users pay. This long-term solution to the problem could make Arweave a winner here.

The question between centralization and decentralization emphasizes once again how early we are in the metaverse trend. For this reason, it is important that investors remain engaged and curious when looking for ways to invest. New developments will reveal more opportunities over the long term.