3 Metaverse Actions to Buy Now
One theme that has captured the attention of the investment and business community in recent months has been the metaverse, defined as immersive and interactive online virtual environments. Businesses of all sizes are spending billions of dollars trying to capture this potential next wave of the internet. This includes Meta-platforms (NASDAQ: FB), the parent company of Facebook, Oculus, Instagram and WhatsApp. The tech giant plans to spend more than $ 10 billion annually on investments in the Metaverse.
But Meta isn’t the only company working on the Metaverse. Here are three Metaverse stocks to buy right now to keep up with this long-term trend.
1. Correspondence group
Match group (NASDAQ: MTCH) dominates the online dating industry. It has several apps and services, but the most important is Tinder, the world’s most profitable mobile dating app. Currently, the company earns most of its money by offering memberships or pay-per-view purchases, so users receive enhanced features and get their dating profiles in front of more potential partners. For example, in its most recent quarter, the number of paid users of Match Group grew 16% year-on-year to 16.3 million, which means that across its services, 16.3 million people were spending money with the business.
This strategy has worked wonderfully so far and should ensure solid growth for the company over the next few years. However, Match Group has ambitions to make its services even more immersive over the next decade and set out its vision in its latest letter to shareholders. It will start with video features, which Match Group has already added to many of its services. Within Tinder, he just launched an âexploreâ page where users can socialize with each other based on shared activities or hobbies. It plans to launch a virtual currency around the world to make it easier for users to purchase virtual goods and services on the platform.
Outside of Tinder, Match Group’s most ambitious investment is Single Town, which is managed through its recent Hyperconnect acquisition in South Korea. Single Town is an experimental virtual world where singles can get together and chat / relax using avatars in a virtual world. The idea is new and may fail to gain traction, but it shows that Match Group is focused on improving the services it owns.
2. Take-Two Interactive
Take-Two Interactive (NASDAQ: TTWO) is a video game publisher behind successful games like Grand Theft Auto (GTA), Red Dead Redemption, and NBA 2K. Its main driver of income is RGT, which is the company’s most metaverse franchise. To give a bit of context, the latest new bonus RGT game that Take-Two has released is GTA V, released in 2013. It was the most popular game of the past decade and has been a huge growth engine for the company even in recent years.
How is it possible? At the same time as the release of GTA V, Take-Two is out GTA Online to customers. GTA Online is a virtual world based in the fictional town of San Andreas in Southern California. Since its release, Take-Two has released consistent updates and expansions for the GTA Online community, and these have spurred spending on items and services within its virtual economy. While they’re not as immersive as VR headsets (at least not yet), GTA Online is probably the best example of a living metaverse that’s actually working.
GTA Online will release as a standalone game in March 2022, which will hopefully increase the potential number of people interacting in the virtual world. The possible exit of GTA VI, whatever the case, will likely lead to even more recurring engagement within the GTA Online world. As the virtual world becomes more and more immersive over the next decade, you can bet GTA Online It will be too, which will hopefully benefit all of Take-Two Interactive’s shareholders.
Roblox (NYSE: RBLX) is another metaverse action, but it “turns the story around” when compared to companies like Match Group and Take-Two Interactive. Instead of creating their own metaverse-style experiences, Roblox offers tools for other teams of developers to create their own virtual experiences for consumers. Think of it as YouTube for video games and virtual world development.
Experiences on the Roblox platform are currently primarily aimed at children, with the majority of its user base being under the age of 18. But over time, the company believes it can improve the tools it has for graphics development to make its games more up to par. with what professional studios like Take-Two publish. Roblox is already a huge online community with 47.3 million Daily Active Users (DAUs) at the end of the third quarter. These users are spending madly on Robux, the platform’s in-game currency that developers can sell to gift experiences or items for their games. (Roblox makes money by taking a share of every trade.)
In the third quarter, Roblox’s net bookings (its measure of sales) reached $ 637.8 million, which generated free cash flow generation of $ 170.6 million during the period. As previously stated, the platform is primarily aimed at kids right now, but Roblox is building one of the purest metaverse platforms out there. If you think the trend for more immersive, virtual worlds will continue over the next several decades, Roblox could be a great long-term component for your wallet.
This article represents the opinion of the author, who may disagree with the âofficialâ recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.