Metaverse is a shared virtual 3D world or worlds that are interactive and collaborative. It covers a number of technologies in the field of co-spatial computing. Technologies include interactive 3D graphics, augmented reality (“AR”), virtual reality (“VR”), online economies, multiplayer gaming, and more. includes.
Once viewed as science fiction, the metaverse is now seen as the future of gaming, entertainment, brands, e-commerce and enterprises. Any device capable of delivering an immersive 3D experience (including a computer or even an iPhone) is considered metaverse capable.
With more and more companies from various industries joining the Meta bandwagon, it is clear that the metaverse will sooner or later dictate the next generation of the internet as it presents a significant investment opportunity in the coming years.
Growth prospects for Metaverse players are vast
The global metaverse market size It is expected to reach $426.9 billion by 2027, from $61.8 billion in 2022, at a compound annual growth rate (“CAGR”) of 47.2% during the forecast period, according to a MarketandMarkets report.
The core market for online game developers and gaming hardware could exceed $400 billion in 2024, with the rest of the business coming from live entertainment and social media. According to Bloomberg Intelligence, gaming creates a $413 billion market for the AR and VR metaverse report.
Hosted by Khronos Group Metaverse Standards Forum created with the goal of establishing interoperability standards for the projected metaverse. Participants in the Metaverse Standards Forum include many of the largest companies in the space, from chipmakers to gaming companies, as well as established standards-setting bodies such as the World Wide Web Consortium (W3C).
As the Fed turns hawkish to tame stubbornly high inflation, smart investors should therefore keep an eye on the companies as major global indexes continue to slide. Meta platforms (META – Free report), Microsoft (MSFT – Free report) and Roblox (RBLX – Free report), is poised to capitalize on the metaverse boom. These companies currently carry a Zacks Rank #3 (Hold). You can see Here’s a complete list of today’s Zacks #1 Rank (Strong Buy) stocks.
Year to Date Performance
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Meta Aims to Create Economic Opportunities in the Metaverse
The metaverse ambitions of the Facebook-parent Meta Platform are well known. Parent Facebook is set to launch a new policy at the Metaverse Standards Forum to develop the metaverse as an independent commercial platform aimed at creating new economic opportunities. Such policies will help recognize the need for decentralized systems and foster collaboration between the public and private sectors.
According to META, the metaverse will be worth $3 trillion by 2031. Big cities like Dubai, Seoul, and Taiwan plan to take advantage of the recent boom in metaverse popularity. Metaverse also offers creators new opportunities to develop new forms of art and entertainment, build more interactive relationships with their audiences, and create new economic opportunities for themselves.
Meta is investing heavily in AI technology that will help establish the metaverse as a commercial virtual reality independent of the real world. Meta recently unveiled the Meta Quest Pro, its first high-end virtual reality headset, at the Meta Connect event.
Collaborated with Meta NVIDIA (NVDA – Free report) to create an AI research supercomputer that helps META AI researchers create the various AI models essential to creating the metaverse. NVIDIA is trying to transform its leadership position in transforming computing hardware for the metaverse into a set of software tools for creating and selling content in virtual worlds.
The Zacks Consensus Estimate for current year earnings has remained steady at $8.96 per share over the past 30 days.
Microsoft is paving the way for the metaverse through teams, games
Microsoft aims to be the go-to software provider in the metaverse. To build Metaverse, Meta Platforms partnered with Microsoft, co-founder of the PyTorch foundation, to bring new work and productivity tools to Meta Quest Pro and Meta Quest 2 next year. These include applications such as Microsoft Windows 365 and Microsoft Teams, and the ability to join a Teams meeting from within Meta Horizons Workrooms.
The company’s Mesh system for Microsoft Teams can be used as a gateway to the metaverse and used on a standard laptop or smartphone. The first step most Mesh for Teams users will take is to join a standard Teams meeting as a customized avatar of themselves, rather than as a static image or video. Organizations can also create immersive spaces—metaverses—within Teams.
Microsoft is set to acquire Activision Blizzard in an all-cash deal for $68.7 billion to enter the gaming world competitively in the metaverse. Microsoft’s strategic plan to buy Activision helped it become the world’s third-largest game company and gave it the expertise to carve out its share of the multibillion-dollar metaverse market.
In addition, Microsoft’s Xbox gaming system can be used to provide users with access to the metaverse.
The Zacks Consensus Estimate for current year earnings has remained flat at $9.54 per share over the past 30 days.
Roblox Metaverse Makes Brand Amid Rising Competition
In the virtual world, regardless of AR and VR technologies, Roblox Metaverse is the first participant in the Metaverse. It has all the key features that viewers have come to expect from Metaverse, from surreal virtual world experiences to a cryptocurrency-based economy.
The Roblox metaverse is accessible on smartphones and other mobile devices without the need for VR headsets. Therefore, it is easier to access and fun to play. Includes top grossing games that have witnessed millions of visits Blox Fruits, Shindo Life, Pet Simulator X, Sonic Speed Simulator, King Legacy, Gacha Online and Livetopia.
Roblox Studio is the company’s proprietary engine that allows creators to build virtual worlds and games. These creators are also allowed to publish their in-game purchasable items. All users are allowed to buy in-game items, but only a few members of the Roblox Metaverse are allowed to sell them through premium membership.
Events such as concerts and ceremonies form the basis of the Metaverse economy. Roblox Metaverse aims to host events that are relevant to its user base, the majority of which are children under the age of 16. These events can have different purposes such as brand endorsements and fundraisers.
Celebrities and rappers like Lil Nas X and David Guetta have already performed concerts for the Roblox Metaverse.
Moreover, RBLX already has its own digital currency, Robux, with over 50 million daily active users.
The Zacks Consensus Estimate for Roblox’s current-year earnings has remained flat over the past 30 days, with a loss of $1.58 per share.