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Why Apple Stock Jumped Today

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What happened Apple (NASDAQ: AAPL) stock beat the market Thursday morning, rising 3% by noon ET compared to a 0.2% increase in the S&P 500. The boost erased some of shareholders' recent losses, and the tech giant is beating the market so far in 2022. Yet the stock is still do
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Stock Market News for Apr 28, 2022

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Is Alphabet's Stock a Buy Now?

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Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) stock price dipped 3% during after-hours trading on April 26 following the release of its first-quarter earnings report.The tech giant's revenue rose 23% year over year to $68.01 billion, which missed analysts' estimates by $90 million. I
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5 Green Flags For Microsoft's Future

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Microsoft's (NASDAQ: MSFT) stock price rose 5% during after-hours trading on Tuesday, April 26, following the release of its third-quarter earnings report.The tech giant's revenue rose 18% year-over-year to $49.4 billion, which beat analysts' estimates by $350 million. Its net in
The Motley Fool

Which Metaverse Stocks Hold the Most Promise?

4 years 5 months ago

It's been many months now since Mark Zuckerberg single-handedly turned the metaverse from an abstract sci-fi concept to one of the hottest trends in the tech space. As exciting as it is to want to invest in the next digital frontier that could include immerse virtual and augmented reality experiences, it can be tough to spot the biggest winners.

Though Meta's company name makes it an obvious choice, it may not even be a frontrunner once VR and AR are ready to go mainstream and begin the process of slowly phasing out smartphones.

In this piece, we'll have a sneak peek at three top metaverse stocks using Tipranks' Stock Comparison Tool. We'll also check in with Wall Street to gauge today's slate of valuations.

Meta Platforms (FB)

Meta Platforms may very well be viewed as a pioneer in the virtual worlds of tomorrow, with billions committed to building the metaverse as Zuckerberg sees it. Indeed, Zuckerberg's metaverse initiatives could pay massive dividends in as little as five years. Still, Meta remains primarily a social-media company.

Arguably, Meta may not have the best video-gaming foundation for the big metaverse transition. Indeed, video gaming and experiences are likely to be a main attraction for the metaverse. In that department, Meta falls short.

However, it's hard to deny Meta's positioning on the hardware front. The acquisition of Oculus gives Meta a nice edge as far as headsets are concerned. Zuckerberg and his "Metamates" have since improved the feature set and functionality of Oculus headsets with the latest budget-friendly Oculus Quest.

In time, I expect Meta to add gradual improvements to the Quest. Still, the company's premier headset in Project Cambria (Oculus Quest Pro) appears most exciting. Though expensive, such premium headsets likely hold the most potential over the long haul, given the greater degree of immersion. Further, VR sickness is a problem that may be soothed with higher-end hardware and innovations.

Indeed, pricier hardware may prove a worthy investment if the software experiences are there. In terms of hardware innovation, it's tough to stack up against Meta. It's been in the game for quite a while, and it could make a significant dent once the metaverse is finally ready for prime time.

After a rocky start to the year, FB stock finds itself down around 53% from its high. A great entry point for those looking for metaverse exposure.

Wall Street analysts remain incredibly bullish, with an average Meta Platforms price forecast of $309.08, implying ~77% upside from Wednesday's closing price.

Microsoft (MSFT)

Microsoft is a behemoth in the enterprise segment, but its video-gaming powerhouse over at Xbox should not go ignored. The recent acquisition of Activision Blizzard makes Microsoft's gaming empire one of the largest in the world. With such a powerful, growing presence in video gaming, Microsoft could enjoy smooth sailing into the era of the metaverse.

Undoubtedly, Microsoft is changing the game (pun intended) in the video-gaming world with services such as the Xbox Game Pass subscription service and Xbox Cloud Gaming (formerly xCloud). With such services, the barriers to entry into gaming have effectively been reduced to zero.

With Xbox Game Pass and Cloud Gaming, one no longer needs to buy expensive games for $79.99 upfront, nor does one need to purchase a costly Xbox console. In essence, Microsoft may have singlehandedly opened up triple-A gaming to everybody.

As we move closer to the metaverse, I'd look for Microsoft to combine its VR talent with its incredible gaming division to create an immersive offering that may be difficult to stack up against.

If gaming holds the keys to the metaverse, Microsoft could evolve to become a leader. If anything, Microsoft may be a better bet than Meta, given how gaming will probably be the first stepping stone into virtual realms. Of course, work and other experiences will follow. Microsoft also stands out in the "metaverse for work" department with its Teams Mesh virtual office place offering.

Though the early days of the metaverse will be less of a needle-mover for Microsoft versus some of its peers, given its diversified revenue stream, I am enticed by the firm's foundation. It looks best-in-breed. If anything, Microsoft could be the one firm that leads us into the metaverse.

Wall Street analysts remain bullish, with an average Microsoft price target of $371.13, implying 37.4% upside from Wednesday's close.

Nvidia (NVDA)

Finally, we have graphics-hardware maker Nvidia, which refers to the metaverse as we know it as the "omniverse." Undeniably, it's hard not to get excited when CEO Jensen Huang steps on stage, delivering his views on the future of technology. Undoubtedly, many were incredibly excited over the potential for Nvidia to power the digital realms of tomorrow.

Nvidia's Omniverse platform genuinely looks next-generation. The company's Omniverse isn't just for video gaming, though. With the unveiling of Omniverse Computing Platform Nvidia OVX at the company's exciting GTC 2022 event, the industrial applications of Nvidia's Omniverse are also intriguing.

With so many exciting innovations from Omniverse to next-generation AI technologies, you can expect to pay a lofty premium for NVDA stock. It is the priciest stock on this list.

Despite the nearly 18-times sales multiple, Wall Street analysts remain as bullish as ever, with an average Nvidia price target of $336.57, implying ~83% upside from current levels.

Conclusion

The metaverse is a trend to keep tabs on over the next decade. Many winners will be crowned, with the market estimated to be worth around $947.1 billion by 2030, implying a CAGR of over 38%.

At today's valuations, Wall Street analysts see the highest upside potential in Nvidia. Indeed, many such analysts view the firm's innovative capabilities as more than worth the hefty price of admission.

Discover new investment ideas with data you can trust.

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