As the adoption of metaverse technologies may take take years, investors in undervalued metaverse stocks can bet on long-term growth. An unlimited digital world that can accommodate millions of people is a goldmine, as it represents a new market with solvent modern participants. Since the metaverse industry is only in the early stages of its development, buying shares in related companies promises early investment benefits. The field requires many components for its sustainable operation, which expands the list of areas that will gain from the introduction of metaverses.
Virtual reality technologies will play a crucial role in this process, as users need VR headsets and haptic devices. However, infrastructure development also involves computing power providers, chip manufacturers, Internet providers, software and cybersecurity specialists. By 2030, the industry is projected to grow by more than 30% per year. If you are among the first metaverse investors, you can get a piece of the pie from the business, which could be worth more than $2369.70 billion in 2033.
Fidelity Metaverse ETF (FMET)
Launched on April 19, 2022, the Fidelity Metaverse ETF (NASDAQ: FMET) is one of the youngest exchange-traded funds in the United States. Its main goal is to track the performance of the Fidelity Metaverse Index, which includes many companies in the metaverse sector. The connection can be diverse: from the production and sale of chips for this area to the full-scale development of the meta-space. The fund offers diversification so that enthusiasts are more likely to benefit from the growth of undervalued metaverse stocks.
In October-November 2022, the asset price did not exceed $20, while now buyers are willing to pay more than $30. The growth is smooth, without sharp jumps and significant plateau zones, anttracting investors with its stability. Over the past 3 months, FMET has added 11.25% to its value and has risen to the current level of $31.94. The inclusion of top-ranked tech stocks in the index, such as Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and Apple (NASDAQ: AAPL), has contributed to the current growth, which may continue in the coming months. Experts predict that the stock will reach the $40 mark and have high expectations for the fund’s future.
Meta Platforms Inc (META)
Meta Platforms, Inc. (NASDAQ: META) is a giant of the tech industry, and therefore has enough resources to reconfigure its activities to meet the trends. One of the latest such changes is the reformatting of the 2022-2024 period. The decline in the share price below $100 was the result of concerns about aggressive investment in metaverse initiatives. However, after breaking out of the low point in October 2022, the company began a steady growth that continues to this day. The implementation of AI technology and related advances have propelled Meta to unprecedented heights. With a price per share of $534.69, the company exceeds its 2022 figures by five times, but the potential is still not fully unlocked so META is still among the undervalued metaverse stocks.
The company’s focus on artificial intelligence is paying off in the form of more accurate targeted advertising and, consequently, higher ad prices. The latest earnings report exceeded market expectations and confirmed the correctness of the diversification approach. The bullish sentiment around META continues to grow, as does the wave of excitement over the positive impact of AI, which means we can expect new rounds of the company’s development shortly.
Autodesk (ADSK)
Architecture, engineering, entertainment, and construction are all areas that require a reliable software provider, and Autodesk Inc. (NASDAQ: ADSK) meets this demand. The company with a market capitalization of $53.08 billion has gained a foothold in the market and become an integral part of many high-tech metaverse projects. After the downturn of April-May 2024, Autodesk began to gain momentum, as reflected in its indicators such as the 50-day moving average (+29.12) and the 200-day moving average (+42.99). The latter indicator shows an increase of 21.07%, which characterizes the bullish momentum of the stock. ADSK has not yet caught up with the 52-week high ($279.53), so it remains in the group of undervalued metaverse stocks.
Autodesk prove its ability to manage resources with its latest unaudited financial results, which indicate a return on equity (ROE) of 65.46% and a net margin of 17.66%. Based, the company is a well-thought-out manager of shareholder capital and generates significant profit from its revenue streams. Even though the price-to-earnings (P/E) ratio for the current fiscal year is 53.34, the expected value for the next fiscal year is 24.49, which demonstrates Autodesk’s earnings potential.
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, Julia Magas did not hold (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.
