Now is the moment to place a substantial wager on metaverse stocks once more. However, the focus isn’t on the version promoted by Mark Zuckerberg, which unfortunately turned into a multi-billion-dollar debacle. Instead, the spotlight is on other promising players in the metaverse space that are poised to redefine the digital landscape and offer significant investment opportunities. These are some of the best metaverse stocks in July.
These companies are leveraging advanced technologies to create immersive, interactive virtual worlds, and their potential for growth is immense.
Instead, we’re talking about the version that Investorplace contributor Luke Lango said, “blends innovative, accessible, and unobtrusive hardware with VR and AR technologies, seamlessly integrating virtual information into the real world.” In fact, here are some of the top metaverse stocks that should benefit over the long haul.
Nvidia (NVDA)
One of my favorite ways to trade anything tech, AI, and metaverse-related is with Nvidia (NASDAQ:NVDA). In fact, I’ve mentioned it a few times since May 10. Once at $285, and again at $385. Today, NVDA is up to $423.02, and it’s still a bargain. From its current price, I’d like to see it closer to $500 a share before the year is out.
With regards to the metaverse, remember, the company’s Omniverse platform allows users to create and simulate virtual worlds in the metaverse. With it, Amazon (NASDAQ:AMZN), for example, is creating AI-powered digital twins of its warehouses, improving warehouse design and workflows, and training smarter robotics solutions.
In short, when it comes to AI and the metaverse, NVDA is a must-own stock. Better, analysts love the stock here, too. Daiwa, for example, just upgraded NVDA to an outperform rating from neutral. Piper Sandler just raised its price target to $450 from $440. Mizuho raised its price target to $190 from $175. This makes it one of the best metaverse stocks in July.
Roblox (RBLX)
Roblox (NYSE:RBLX) is another no-brainer metaverse stock. When I last mentioned RBLX, it traded at $37.85 on June 23. Today, it’s up to $40.30 and could push even higher. Analysts like it, too.
Roth MKM analysts upgraded the Roblox stock to a buy rating, with a price target of $48. The firm also raised its adjusted earnings estimates. Benchmark analysts also upgraded RBLX to a buy rating, with a $45 price target, encouraged by the company’s advertising efforts. Analysts at Canaccord just initiated coverage with a buy rating with a $48 price target. Plus, we have to consider that RBLX is one of the top leading destinations for immersive gaming. With these factors combined, it’s one of the best metaverse stocks in July.
First-quarter earnings were encouraging, too. Revenue jumped 22% year over year to $655.3 million. Bookings were up 23% year over year to $773.8 million. Average daily active users jumped 22% to 66.1 million. Hours engaged by users soared 23% year over year to 14.5 billion.
Unity Software (U)
Or, look at Unity Software (NYSE:U), which I also mentioned on June 23. At the time, it traded around $37. At the time of writing, it’s up to $43.42 and, honestly, overdue for a healthy pullback.
At the moment, it’s up on a few big catalysts. One, as the metaverse shows signs of life again, so should Unity. Two, earnings have been solid. In May, the company beat expectations on revenue and raised its full-year revenue forecast. Three, Apple is working with Unity Software to bring 3D apps to its headset, as noted by Investing.com – a move Piper Sandler analysts said could reinforce Unity as “a developer platform of choice for 3D applications.”
Even better, Unity just announced a marketplace for AI software, which was met with an overweight rating – and a $48 price target – from Wells Fargo. According to CNBC, “Unity’s customers, which use its game engine software to produce games for phones, consoles, and virtual reality headsets, will be able to choose from software that can do things such as generate game dialogue or textures and graphics using AI from independent companies such as Inworld AI or Polyhive.”
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
