The world of metaverse stocks has been up and down over the last few years.
It reached its zenith when Meta Platforms (NASDAQ:META) rebranded from its former alias, Facebook in late 2021. Metaverse worlds, including The Sandbox (CCC:SAND-USD), were all the rage. Optimism was riding high for virtual worlds and their potential.
Then optimism quickly faded as the economic realities of late 2021 set in. Runaway inflation put a damper on growth, and rate hikes loomed on the horizon. A cold period set in that took us into 2023.
Now, optimism is back, especially since major players like Apple (NASDAQ:AAPL) have signaled their interest. And that makes cheaper shares worth buying now.
Qualcomm (QCOM)
Qualcomm (NASDAQ:QCOM) is one of the more prominent chipmaker stocks in relation to the metaverse. The opportunity firm is centered on its Snapdragon chipsets and their application to the metaverse.
Further, Qualcomm has created a Snapdragon Spaces XR Developer Platform to support the metaverse and its development. The platform is designed to help developers utilize the firm’s technology to create virtual reality, augmented reality, and mixed reality worlds in which humans can interact.
Investors should think of this as the next phase of potential. Qualcomm is working with key partners including Meta Platforms to develop the technology. The firm is clear that it is unsure of its latest iteration of development but remains committed to moving forward. A series of YouTube videos by QCOM are available to gain more depth on the subject.
Qualcomm will be a key player in the development of the space and along with its low price relative to earnings, makes it a buy.
Roblox (RBLX)
Roblox (NASDAQ:RBLX) is perhaps the best-known metaverse stock outside of Meta. The firm’s platform has allowed users to build more than 40 million games in total. These can all be considered worlds unto themselves, but Roblox also includes many VR games as well. Some of the most popular of which can be found at TheGamer.
Roblox is clearly among the leaders in the emerging metaverse. The firm has carved out a large following in that niche with $655.3 million in revenues in the first quarter. That represents 22% growth on a year-over-year basis for the firm even though that growth wasn’t cheap.
Roblox reported a net loss of $268.3 million during the period. The cost to build a platform for creators is pricey, as the earnings for Roblox shows. One of the more important metrics for Roblox is bookings, which represent virtual currency usable on the platform for on-platform purchases. It grew by 23% during Q1.
Autodesk (ADSK)
Autodesk (NASDAQ:ADSK) is a metaverse stock that many may not necessarily associate with virtual worlds due to its name. The firm is best known for AutoCAD, a computer-aided drawing software.
The firm’s software is being utilized to help build the digital infrastructure of metaverse worlds. The firm is particularly focused on Building Information Modeling (BIM). In short, BIM allows users to create and manage information for a built asset in the real world, using all kinds of applications. It is also being used to create digital assets that exist solely within the digital world. That could potentially allow for new revenue streams within the metaverse in gaming and other industries.
The firm is cleverly leveraging its AutoCAD technology in partnership with gaming companies to build worlds based on the Unreal engine. Autodesk is expanding this opportunity and remains an integral part of the future metaverse with stock that trades at discounted levels.
On the date of publication, Alex Sirois 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.
