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Highlights
- Metaverse is a mix of a real and virtual worlds, an idea popularized by Mark Zuckerberg, the CEO of Meta Platforms Inc., formerly Facebook.
- The metaverse market might hit US$800 billion by 2024, according to Bloomberg Intelligence.
- Still, experts the metaverse idea could take at least a decade to reach its full potential.
Metaverse is the latest technology buzzword after Facebook changed its name to Meta Platforms Inc. as it rebrands itself into a metaverse company. The metaverse concept has caught the imagination of people across age groups, regions, and communities.
Metaverse is an interconnected virtual space where one can work, play, network, etc. It is a mix of the real and the virtual world. The virtual world will have real people’s avatars. According to experts, the metaverse industry will expand by leaps and bounds over the next few years.
People can access the virtual world through different devices like a smartphone or a computer.
Metaverse’s growing popularity can be gauged from the launch of an ETF with the same theme. In June this year, Roundhill Investment launched a metaverse ETF to capitalize on the trend.
Here we discuss six companies that are involved in the metaverse concept in some way.
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Meta Platforms, Inc. (NASDAQ:FB)
Last week, Facebook changed its name to Meta Platforms Inc as part of its plans to rebrand itself as a metaverse company. It wants to go beyond the image of a social networking platform to a metaverse universe where people can connect in a virtual reality environment.
Facebook is investing heavily in the project. The Menlo Park, California-based company has a current market capitalization of US$929 billion and a P/E of 23.53.
Although it faced many regulatory red flags and controversies over the last few years, its stock kept growing. It gave around 26.65% return YTD. The stock closed at US$328.08 on Nov 2.
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Source – Pixabay
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Microsoft Corporation (NASDAQ:MSFT)
The Redmond, Washington-based company plans to introduce Mesh for Teams, a metaverse idea that will bring virtual and augmented reality experience to the existing videoconferencing platform Teams, in the first half of 2022. Users will also be able to share files in a digital format.
Mesh for Teams can also be used on smartphones besides laptops. Users can create a virtual avatar of themselves and locations for meetings.
Microsoft has a current market capitalization of US$2.4 trillion, a P/E ratio of 37.09, and a dividend yield of 0.68%. The stock closed at US$333.13 on Nov 2, 2021. It rose 50.36% YTD.
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Roblox Corporation (NYSE:RBLX)
The San Mateo, California-headquartered online entertainment company also plans to introduce a metaverse product. The company already offers users immersive and 3D experiences on its gaming platform for kids, teens, and adults.
Roblox may bring business and shopping elements to its virtual and augmented reality-based platform. In addition, it plans to introduce a Roblox-powered virtual currency dubbed Robux.
The company brought its IPO this year and has a current market capitalization of US$45 billion.
The stock grew 15% since its IPO in March. It closed at US$79.59 on Nov 2, 2021.
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NVIDIA Corporation (NASDAQ:NVDA)
Nvidia is based in Santa Clara, California. It manufactures graphic processing units (GPU) Its chips are used in data centers, gaming, automotive infotainment, etc.
The chipmaker company has built its Omniverse platform - a powerful multi-GPU real-time simulation. It is used to create real-world simulations like buildings, factories, etc. The platform is used for 3D production and offers real-time scene updates. This semiconductor company has a market cap of US$660 billion, a P/E ratio of 94.25, and a dividend yield of 0.06%.
The stock’s closing price on Nov 2 was US$264.01. It grew more than 103% YTD.
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Source – Pixabay
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Amazon.com, Inc. (NASDAQ:AMZN)
The e-commerce giant might also enter the metaverse segment. With its massive presence worldwide through cloud-based services and media offerings, the metaverse concept would be a natural progression. The Seattle, Washington-based company has a current market capitalization of US$1.7 trillion and a P/E ratio of 65.18.
The stock closed at US$3312.75 on Nov 2, 2021. It gained around 3.5% YTD.
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Bottomline
According to Bloomberg Intelligence, the metaverse market will grow to US$800 billion by 2024. As the metaverse idea gains ground, technology and gaming companies are beefing up investment and research to capitalize on the opportunities opening up for the future.
