3 best metaverse stocks to buy in December

The rise of the metaverse could usher in a new era of commerce and socialization in virtual worlds. This potentially revolutionary trend is just starting to take hold, and businesses and investors are scrambling to enter the ground floor.

As an emerging medium, it’s fair to say that the metaverse is a relatively high risk investment category, but people who back good companies and good projects could continue to enjoy stellar returns over the long term. With that in mind, read on to find out the top three Metaverse stocks worth adding to your portfolio before the end of the month.

Image source: Getty Images.

1. Meta-platforms

If you had to pick a single company that appears to be positioned to lead the charge on the metaverse, Meta-platforms (FB -0.02% ) should be as strong a choice as any. The company’s belief in virtual worlds as a big step forward and a revolutionary opportunity is so strong that CEO Mark Zuckerberg and his company have chosen to change the company name from Facebook to one that reflects his new one. big bet on growth.

The incredible resources of Meta Platforms and the massive active user base give the company a solid foundation to launch its metaverse projects. Between Facebook, Instagram and WhatsApp, the company operates some of the most popular social media and communication platforms in the world. The company ended its final quarter with 3.6 billion monthly active users, or roughly 45% of the world’s population.

In addition to its massive reach and development resources, Meta Platforms was also a forerunner in the metaverse. Even before the term “metaverse” entered the popular lexicon, the company envisioned virtual reality (VR) as the next revolutionary computing platform. The tech giant’s VR division is at the forefront of hardware (via its Oculus headsets) and category software, and the company’s major acquisitions should help strengthen its leadership position in interactive virtual content and services. .

2. Unity software

Creating immersive virtual worlds is a complex process, but Unity software ( you -0.38% ) offers software that can make it much easier. The company provides a development engine for video games and interactive experiences, and it’s ready to help usher in the era of the metaverse. With Unity’s tools and services, even relatively small teams can create compelling visuals and worlds that will be enjoyed by large audiences.

Unity has already established itself as a go-to development engine for creating AR (augmented reality) and VR experiences, with around 60% of apps in combined categories using its tools. About 71% of this year’s top 1,000 mobile games were also created using company development resources.

Unity managed to grow its sales by 43% year-on-year in its most recent quarter, particularly impressive as it ended a year of explosive growth in 2020. As demand for metaverse content and services increases, Unity appears uniquely positioned. to help a wide variety of businesses find success in the emerging medium.

3. Nvidia

Whether through local devices or cloud-based computing platforms, powerful computing hardware will play an important role in the evolution of the metaverse. Nvidia (NVDA -0.96% ) is the leading supplier of graphics processing units (GPUs), and the semiconductor specialist is likely to be a supplier of key components for the evolution of virtual worlds.

In addition to its hardware business, Nvidia is also positioning itself to take advantage of the metaverse trend with its Omniverse software platform. Omniverse is a development, productivity and sharing service adapted to the creation of metaverse experiences, which could become a major performance lever for the company.

Nvidia is already generating very high margins and seems poised to maintain its leadership position in the field of GPUs. Adding a substantial Software as a Service (SaaS) component to its business model could add a major new source of revenue and further increase its margins.

Due to the long-term growth opportunities for the company’s processors in games, cloud computing, artificial intelligence and machine vision, the graphics specialist already had promising prospects, and the rise of the metaverse presents another potentially explosive growth opportunity.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Questioning an investment thesis – even our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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Margie D. Carlisle