The metaverse, a virtual world where people can interact with one another using headsets and avatars, has been eclipsed by all the hype surrounding artificial intelligence (AI). However, the metaverse has not gone away. A number of leading metaverse stocks continue to work diligently on its development.
While it doesn’t get as much media attention as a few years ago, the metaverse continues to be one of the fastest-growing areas of technology. The metaverse’s market size is forecast to grow from $86.31 billion in 2023 to $803.29 billion by 2031. This represents a compound annual growth rate (CAGR) of nearly 40%. The technology underpinning the metaverse is only improving, as are the products related to the virtual realm.
Here are three metaverse stocks that could grow your wealth.
Apple (AAPL)
Apple (NASDAQ:AAPL) entered the metaverse at the start of this year with the launch of its Vision Pro augmented reality headset, the company’s first new product since the introduction of the Apple Watch in 2015. At the beginning of July, Apple expanded the Vision Pros availability to Australia, Canada, France, Germany, and the United Kingdom. While the headset has won technical praise from critics, its price has been an issue.
The headset allows users to play video games, view photographs, and watch movies in a virtual setting. It is priced at $3,499 in the U.S. market. Analysts say the hefty price tag puts the Vision Pro out of reach for most consumers. Apple looks to be rectifying the situation by developing a cheaper model. Media reports say Apple is focused on entering the lower end of the augmented reality headset market in 2025.
Apple’s stock has increased 20% so far this year. All in all, this is one of the top metaverse stocks.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) remains a top metaverse stock and the industry leader when it comes to virtual reality or augmented reality headsets. Meta’s Quest device has a starting price of $499.99. It has become the market leader, having won praise from critics and consumers alike. The latest Quest 3 device continues to sell extremely well and has proven to be popular with kids.
Beyond its lower price, other advantages to the Quest include a longer battery life and more applications than competing devices, including Apple’s Vision Pro headset. Meta Platforms rebranded itself a few years ago to reflect its focus on the metaverse. It also continues to lead the development of the technology that underpins virtual realms and products. META stock has increased 52% in the last 12 months.
Roblox (RBLX)
It’s had a rough go of it lately, but video game developer Roblox (NYSE:RBLX) is still a metaverse stock worth considering. The company runs the Roblox online video game platform. Roblox is a virtual world in which users can program and play games they create themselves or with other users. While Roblox remains extremely popular with kids and teens, the stock has struggled with mixed earnings and guidance.
Most recently, Roblox posted a Q1 loss of 43 cents per share. This was much better than a loss of 53 cents expected on Wall Street. Bookings totaled $923.8 million in Q1, up 19% from a year earlier and above analyst estimates of $919 million. While the financial results were positive, the company delivered forward guidance that fell short of Wall Street’s expectations. This sent the stock lower.
Management said they expect bookings (revenue) of $870 million to $900 million for the year’s second quarter, below analysts’ calls for $929 million. For all of 2024, bookings are expected to be between $4 billion and $4.1 billion, down from an earlier forecast of $4.14 billion to $4.28 billion. RBLX stock is down 7% so far in 2024.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.