In this article, we will discuss the 12 Best Metaverse Stocks to Invest in.
The metaverse, which comes under the video games industry, is a fast-growing digital frontier where immersive tech creates interactive virtual worlds. It is built on virtual reality (VR), augmented reality (AR), blockchain, and mixed reality, offering simulated spaces for socializing, working, learning, and playing. Essentially, it blends digital and physical realities to provide customized and immersive experiences via avatars, live communication, and spatial computing. Users no longer just browse static web pages – they move through dynamic 3D environments that mirror and enhance real-world interactions, marking a shift from simple apps to fully immersive virtual spaces. Metaverse is segmented into four types: lifelogging, augmented reality, mirror world, and virtual reality.
The metaverse grows mainly by combining content streaming and blockchain infrastructure, where blockchain has improved secure transactions, digital asset ownership, and governance. These systems support user-driven economies where people build, sell, and profit from digital experiences, similar to Roblox. At the same time, the rise of 3D platforms, virtual markets, and gaming worlds drives investment.
In 2024, the global video streaming market—crucial for immersive media—hit $674.25 billion. The Business Research Company reports that the global metaverse market is predicted to grow from $227.05 billion in 2024 to $316.34 billion in 2025, with a strong 39.3% CAGR. Whereas, S&P Global Market Intelligence predicts that global metaverse revenue will climb from $17.5 billion in 2023 to $54.5 billion by 2028, growing at a 25.5% CAGR. Businesses became the main customer segment, driven by the need for digital twin software and remote collaboration tools. According to S&P, these businesses strengthened their position in 2023, accounting for 42.8% of the entire metaverse market. As major companies expand virtual platforms and adopt faster streaming, metaverse services strengthen across industries.
Moreover, social media and mobile internet have sped up the growth of the virtual ecosystem. With over 2.4 billion users on Meta (previously Facebook) and billions more on WhatsApp and YouTube, the digital world is more connected than ever. The line between digital and physical life keeps blurring as many daily activities—hanging out, entertainment, shopping—are already happening in early metaverse settings. This has sparked the development of virtual learning, workplace collaborative tools, and blockchain-based gaming economies. According to NewGenApps, VR and AR gaming is set to reach 216 million players worldwide by 2025, with a market worth $11.6 billion. Markedly, a 2024 survey revealed that 34% of game developers globally are creating titles for the Meta Quest Store, a digital marketplace, showing strong developer interest in immersive gaming platforms.
Furthermore, generative AI is reshaping the next phase of the metaverse, ranging from custom content suggestions to auto-dubbing, editing, and better visuals. Streaming platforms now use large language models like GPT-4 to create real-time content and ensure moderation, making digital interactions safer and more accessible. Although the broader metaverse is still under development, technologies powering virtual economies—such as play-to-earn games, NFT marketplaces, and digital event tickets—already create income opportunities for users and developers. The Entertainment Software Association reported that 227 million Americans play video games every week, with an average age of 31. This shows a growing mainstream adoption of immersive content across different age groups. The combination of AI with VR/AR is helping platforms expand beyond gaming and entertainment into healthcare and business applications.
As users want more personalized, high-resolution experiences, metaverse tech is advancing on low-latency infrastructures. Platforms like hesp.live are changing streaming with super-fast delivery for gaming, education, and live shopping. Initially, the metaverse faced a lot of backlash due to a not-so-appealing experience and inability to connect with users. Despite less public buzz after 2022, progress hasn’t stopped—the metaverse is young, with ongoing improvements pushing it forward. These advances, plus the growing demand for video-on-demand services, show how deeply the metaverse fits into digital viewing habits. As North America leads the market, with major players and high digital spending, Asia Pacific is also set for future growth due to the quick adoption of immersive tech.
This shows that the metaverse isn’t just a passing trend—it is a fundamental shift changing how people live, talk, and connect in digital spaces. As immersive environments disrupt traditional media, the metaverse is becoming a promising investment. With this, let’s now look at 12 of the best metaverse stocks to invest in, focusing on companies driving innovation, platform development, and infrastructure growth in this transformative space.
Photo by mahdis mousavi on Unsplash
Our Methodology
To compile our list of the 12 Best Metaverse Stocks to Invest in, we first conducted extensive research to identify companies with significant exposure to the metaverse technology. First, we used stock screeners, ETFs, and online rankings to make an extended list of the relevant companies. Then, we extracted the number of hedge fund holders having a stake in the respective companies as of Q4 2024, using data from Insider Monkey’s hedge fund database. The finalists are stocks with the highest hedge fund interest.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Unity Software Inc. (NYSE:U)
Number of Hedge Fund Holders: 55
Unity Software Inc. (NYSE:U) offers a platform for creating 3D and 2D interactive content across gaming, mobile, PC, XR, and industrial apps. As a key tech partner for immersive environments, Unity helps build metaverse experiences and digital twins. Mainstream companies, including Meta, use Unity’s technology for its XR package, showing its importance in the metaverse world. In addition, the company’s tools help developers create AI-enabled environments with built-in user acquisition and monetization features. The success of its products makes Unity Software one of the best metaverse stocks.
Unity Software Inc. (NYSE:U) beat expectations in Q4, ending December 31, 2024, with $442 million in strategic portfolio revenue, an increase of 4% from last year. Furthermore, adjusted EBITDA hit $106 million with a 23% margin, and free cash flow more than doubled to $106 million in Q4, reaching $286 million for the full year. Subscription revenue grew 15%, and industry segment revenue jumped 50%, making it Unity’s fastest-growing business. Moreover, the new Unity 6 engine gained traction with 2.8 million downloads and quick user adoption.
Although Grow Solutions saw just 2% growth to $303 million, Unity is shifting to its new AI-powered platform, “Unity Vector.” The first phase rollout should finish by Q2 2025, aiming at improving target precision and boosting ad performance through self-learning models. Meanwhile, Unity continues to power about 70% of top mobile games and 30% of top PC games, keeping its strong market position.
For Q1 2025, Unity Software Inc. (NYSE:U) expects revenue between $405-$415 million and an adjusted EBITDA of $60-$65 million. For now, the advertisement business faces short-term challenges, although Unity continues to focus on AI, XR, and industrial uses to broaden its market appeal. Clients like Toyota and Raytheon highlight the growing demand from businesses beyond the gaming sector.
11. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 55
Cloudflare, Inc. (NYSE:NET) provides cloud-based security, networking, and developer services that build secure, scalable digital infrastructure across the internet. As a central player in Web3 technologies, Cloudflare supports the metaverse through Ethereum and IPFS gateways, forming a backbone for decentralized networking. With their global content delivery network, Zero Trust security, and edge computing, the company builds infrastructure for immersive virtual environments. This establishes the company’s leading position in the metaverse space, making it one of the best metaverse stocks.
For Q4 ending December 31, 2024, revenue for Cloudflare, Inc. (NYSE:NET) hit $459.9 million, up 27% from last year, fueled by strong customer growth and enterprise adoption. Operating income jumped 69% to $67.2 million, with margins improving by 360 basis points to 14.6%. On the other hand, the diluted EPS reached $0.19, or $0.22 without tax elections, while free cash flow stood at $47.8 million (10% of revenue), showing good operational leverage.
Furthermore, Cloudflare, Inc. (NYSE:NET) closed the quarter with 3,497 large customers, up 27% year-over-year, generating 69% of total revenue. Customers spending over $1 million grew by 47%, while net retention rose to 111%. Additionally, sales growth came from two key areas: experienced account executives hitting targets (10% more reached 80% of quota) and strategic hiring (80% of new people focused on large companies). Moreover, a strong net sales capacity sets them up for better performance in 2025.
In AI, Cloudflare, Inc. (NYSE:NET) focuses on inference rather than training, leveraging its edge platform’s efficiency. The Workers AI and Workers platform reached 3 million developers, with high adoption for AI agents. The company now offers flexible “pool of funds” contracts to make AI adoption easier. Furthermore, major achievements like FedRAMP High certification boost Cloudfare’s standing in regulated markets.
For 2025, Cloudflare, Inc. (NYSE:NET) projects revenue of around $2.09 billion, a 25% growth, and an operating income of $272-$276 million. For Q1 2025, revenue is predicted at $468-$469 million, and network capital expenditure is expected to increase 12-13% of revenue to support growth. With growing enterprise reach, AI focus, and a recurring sales model, Cloudflare is set to benefit from the rising demand for secure, low-latency digital infrastructure.
10. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 61
Roblox Corporation (NYSE:RBLX) runs a 3D platform where users can connect, communicate, and create. The company offers the Roblox Client for exploring virtual worlds, Studio for making content, and Cloud for real-time support. Thus, Roblox stands out in the metaverse through user-created experiences, social features, and partnerships with brands and creators, cementing its role in advancing immersive 3D content. As a result, it is ranked among the best metaverse stocks.
For Q4 ending December 31, 2024, Roblox Corporation (NYSE:RBLX) posted $988 million in revenue, growing 32% year-over-year and exceeding the company’s guidance. Bookings hit $1.36 billion, an increase of 21% from the previous year. Daily users jumped 19% to 85.3 million, with over 61% being 13 or older; furthermore, people spent 18.7 billion hours on the platform, which is a 21% increase. Free cash flow shot up 54% to $120 million in Q4, while yearly free cash flow reached $641 million (five times higher than in 2023).
Roblox Corporation (NYSE:RBLX) keeps growing as it shared $922 million with creators in 2024 through DevEx, up 25% from last year. The company made improvements with real-time pricing, a customizable avatar marketplace, and enhanced monetization through platform-specific Robux incentives. The company’s success also came from expanding content variety with major IP-based activations and breakout experiences like “NFL Universe” and “SpongeBob” gaining traction.
Looking forward, Roblox aims to host 10% of global gaming content, up from today’s 2.4%. The company plans to improve live 3D streaming, cross-device access, and AI creation tools. For Q1 2025, Roblox is expected to bring AI text generation, with 3D AI features following in Q2. Despite economic uncertainties, Roblox Corporation (NYSE:RBLX) is focused on operational efficiency, reliable infrastructure, and growing users through innovation and partnerships.