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Discussing the Metaverse today is similar to discussing the internet in the 1980s. We have products and prototypes that are the first versions of the vision-Metaverse, but still, a long road awaits in getting the first respectable version of the vision-Metaverse.
But one thing is for sure-Metaverse can be the new face of the internet. To give you a brief, a Metaverse is a 3D virtual and online space where our Avatars (our virtual self) can have meetups, concerts, buy and sell stuff to foster economy, play games, and who knows even more.
Long story cut short, Metaverse has the potential to capture and redefine the way we use the internet. Meta (previously Facebook) being the pioneer, many companies are working endlessly to contribute to the space, one way or the other. Consequently, these companies need to be closely watched and invested in if we want to gain personal returns from this new and potent technology. In this article, we will focus on the top Metaverse stock to follow and invest in now to gain huge returns in the coming years.
But first, we will quickly get a basic understanding of what is a Metaverse.
What is Metaverse
Let us dissect the term “Metaverse”.
“Meta” in Greek means “beyond” and “verse” means “universe”. Hence the term Metaverse means something beyond the Universe.
Now a formal definition:
A Metaverse is a 3 dimensional seamless convergence of virtual and online space in which we participate as our Avatars using a VR Headset and can simulate almost all real-world activities like buying and selling, playing games, participating in concerts, socializing, and more one can think of (checkout this Justin Beiber’s Metaverse concert).
Like Facebook (sorry Meta) CEO Mark Zukerberg explains ” Metaverse is the version of the internet which people will not only see but also enter into”.
But wait. Aren’t these technologies already there?
Yes to an extent, the very infant versions of these are already prevalent.
Games like Axie Infinity, Decentraland, and Second Life already impersonate Metaverse to an extent where you can earn while you play. You can buy digital real estate which you can sell, develop them further to gain profits. Further, there are socializing apps like Gather and Fortnite which provide the first avatars of the Metaverse.
The Metaverse which we envision is beyond these incumbent games and applications in terms of the quality of the VR and AR space, number of real world activities we will be able to do (social and professional gatherings, games, buy and sell properties, e-commerce, world tour, etc.), and also adoption.
Organizations have started aggressively ushering into the Metaverse space in one way or the other. Let us see some of the top Metaverse stock to watch out for.
Top Metaverse Stock to watch out for
Metaverse has the potential to create a parallel virtual universe in which our Avatars can carry on with almost every real-life activity such as economy, gaming, social gathering, concerts, marriage, schooling, and whatnot.
But certainly, the success of the Metaverse depends on the adoption by the masses. This is something we will be able to know in the future. But for now, we know that big players like Facebook and Microsoft are investing heavily in the technology. Besides Facebook and Microsoft other companies are also contributing one way or the other in building the infrastructure needed for Metaverse.
So, it is sane to discover and invest in stocks or companies contributing to the Metaverse space.
Metaverse is an amalgamation of few already existing technologies.
- Virtual Reality (virtual world)
Ex: Oculus Headsets
- Augmented Reality (Mixing of the real and virtual world)
Ex: Google Glass, Pokémon Go Smart Phone Game
- 5G Technology-for high-speed internet for communication in the Metaverse
- Blockchain, cryptocurrencies and NFTs
Cryptocurrencies will be the currencies used in the Metaverse. Also, Blockchain technology will provide the immutable ledger or database for storage of records like NFTs, real estate, etc. in the Metaverse space.
Hence, it is intelligent to keep a gaze on the companies and stocks contributing in these different spaces.
But for now, let us check some top metaverse stock that have already shown serious intent and contributions in the Metaverse space.
Nvidia (NASDAQ: NVDA)
Products and Services: One of the leaders and largest manufacturer of graphics and AI chips in gaming and professional set ups.
Contribution to the Metaverse Space: The company’s graphic and AI chips will power the computing devices in the Metaverse. The company has shown direct interest in Metaverse which they often call ‘omniverse’.
Unity Software (NYSE: U)
Products and Services: One of the largest players in mobile games, simulators and visual effects. Provides simulation solution in aerospace, automobile, games. Unity acquired Weta Digital which gave the visual effects in Game of Thrones and Lord of Rings.
Contribution to the Metaverse Space: The company’s graphic and AI chips will power the computing devices in the Metaverse. It is a leader in the visual graphics and simulation space which will be extensively employed in the Metaverse. The company has shown direct interest in Metaverse which they often call ‘omniverse’.
Meta (formerly Facebook) (NASDAQ FB)
Products and Services: Meta owns the world’s largest social network platforms. Meta is the parent organization of Oculus -VR Headsets, Games and Equipment. These will largely be employed Metaverse.
Contribution to the Metaverse Space: Facebook has shown immense interest in Metaverse and has gone to the extent of changing its own name form Facebook to Meta. Meta is planning capture the Metaverse ecosystem for social gatherings. It is building the e-commerce, operating system and social platform for Metaverse.
Meta has even released the VR Metaverse platform Horizon Worlds.
Meta’s Oculus VR Headset will be a vital tool for enablement of a Metaverse.
Microsoft (NASDAQ: MSFT)
Products and Services: One of the largest technology firms for facilitating professional meet ups, tools, etc.
Contribution to the Metaverse Space: Microsoft has been explicit in its interests in Metaverse especially the Metaverse that will enable professional meet ups.
Recently Microsoft acquired game development company Activision for a whopping $68.7 Billion in a quest to develop its own Metaverse. This will give Microsoft ownership to the most popular game franchisees like Candy Crush, World of Warcraft and Diablo, which together have 400 million players monthly. This will help Microsoft in imprinting deeper roots in the gaming business for PC, console, mobile and cloud and will also become the building blocks for Metaverse.
In the first half of 2022, Microsoft plans to launch the Metaverse version of Teams in which people will be able to enter as their digital Avatars to meet people and conduct presentations.
Matterport (NASDAQ: MTTR)
Matterport provides digital twins for real world objects. Digital twins are 3D virtual representations of real-world objects which can provide all the attributes of the real object in a virtual world. It is a leap forward to 2D digital cameras. A camera can only provide you with 2D image of a real-world object. A Digital twin can provide you a 3D view of the object.
Matterport offers 3D cameras which bring depth to an image, 360 cameras which bring multiple angles to an image and software applications to capture these images in your Smartphones. Earlier when graphic designers used to sketch real world spaces like a shop, hospital, hotel, etc. by hand and convert them to Virtual tours of these places.
Now with Matterport’s 3D and 360 cameras it is a matter of fraction of the time taken earlier by hand to capture the virtual 3D models of real objects and places. Matterport is in a spree with its partners to capture the 3D tours of famous parts of famous cities to be converted to Metaverse. A collection of these virtual tours can be found here.
Beyond these, Matterport already works heavily in the realty business, modeling real-estate properties on sites like Redfin (NASDAQ:RDFN) and ReMax. Other clients include Airbnb (NASDAQ:ABNB), Hyatt Hotels (NYSE:H), Nationwide Insurance, the clothing retailer H&M (OTCMKTS:HNNMY), and the U.S. State Department.
In addition, Matterport has collaborated with Facebook AI Research (FAIR). Both the organizations will work collaboratively in enabling the AI required for Metaverse.
Adobe (NASDAQ: ADBE)
Adobe offers applications for video editing, web development, etc. and Adobe Aero offers a comprehensive solution for Augmented Reality. Adobe due to its suite of Creative Cloud products (including Aero) will be able to produce the content needed in the Metaverse.
Metaverse Real Estate
Apart from these one can start accumulating digital real estate properties in platforms like The Sandbox and Decentraland. One can buy digital real estate in these platforms in the form of NFTs which get written to a blockchain. Once the virtual real estate is purchased, the owner of the metaverse real estate NFT can rent, sell or build on his digital property. Japanese video game maker Atari recently purchased 20 parcels of digital land in Decentraland and created its very own crypto casino. Using its own native ERC20-based Atari token, gamblers can place bets and receive winnings in crypto tax-free. Atari has also announced plans to launch its own virtual hotel complex in 2022.
Metaverse for now is a hype that can turn into reality in some decade or half a decade time. As we saw big tech and gaming firms are investing time and money to build on the infrastructure needed to make Metaverse a huge success. But the success truly depends on the adoption of the technology by the masses. These are some of the risks in foreseen in the Metaverse domain.
- Bothersome technology: Metaverse is a bothersome technology. As of now at least one will need to wear an Oculus Headset to get into a Metaverse for a professional meeting for example. Add to it the high-speed 5G data connectivity. Aren’t these (for some) bothersome checklists every time one gets into a meeting. Besides the VR Headset also gives headache after some time. Do you remember the Google Specs (AR enabled Google glasses) which failed drastically?
- Data Manipulation: Metaverse is been extensively popularized by Meta (Facebook) which has a bad reputation when it comes to handling customer personal data. One can imagine the extent of data manipulation and compromise possible by a 3D virtual online space. This threat might hinder the overall adoption of Metaverse.
Having said that, it is also arguably true that the above challenges can be addressed. The heavy and bothersome VR Headsets we use today can be replaced with a more sophisticated lens or specs. Data will be stored in a blockchain which will be immutable and personal data might be needed to the minimum. The virtual reality in games we play today will be further improved in quality. Metaverse is almost at a conceptual stage now and one thing is for sure. There are lakhs and lakhs of people working towards the concept. Hence it is a good idea to invest in metaverse stock.