In this article, we will be taking a look at the 5 best metaverse stocks to buy. To read our detailed analysis of these stocks and the rise of the metaverse, you can go directly to see the 11 Best Metaverse Stocks to Buy.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 84
NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor company providing graphics and compute and networking solutions. Last year, it launched NVIDIA Omniverse, a new platform for virtual collaboration and simulation as part of its efforts to connect with the growing metaverse. The company operates in the US, Taiwan, China, and internationally.
A Hold rating was reiterated on shares of NVIDIA Corporation (NASDAQ:NVDA) on October 18 by analyst Ross Seymore at Deutsche Bank. The analyst also placed a $140 price target on the stock.
This October, NVIDIA Corporation (NASDAQ:NVDA) jumped by 6% and led semiconductor stocks further up in the market. The rise came in light of investors’ worries being eased by fiscal policies arising out of Britain and Broadcom asking the European Union for early approval of the VMware acquisition.
Out of 895 hedge funds tracked in the second quarter, 84 hedge funds were long NVIDIA Corporation (NASDAQ:NVDA). Their total stake value was $3.3 billion.
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 153
Alphabet Inc. (NASDAQ:GOOG) is an interactive media and services company among the Big Five tech giants in the market. The company has begun building its operating system for metaverse headsets under its Project Iris, and is investing large sums in metaverse projects generally. It is based in Mountain View, California.
Stephen Ju at Credit Suisse holds an Outperform rating on shares of Alphabet Inc. (NASDAQ:GOOG) as of October 11. The analyst also placed a $134 price target on the stock.
Alphabet Inc. (NASDAQ:GOOG) shares have been on the rise in October, rising 1.4% in early trading on October 18.
There were 153 hedge funds long Alphabet Inc. (NASDAQ:GOOG) in the second quarter, and 160 hedge funds long the stock in the previous quarter. Their total stake values were $22.3 billion and $29.7 billion, respectively.
Ensemble Capital Management, an investment management company, mentioned Alphabet Inc. (NASDAQ:GOOG) in its third-quarter 2022 investor letter. Here’s what the firm said:
“Alphabet Inc. (NASDAQ:GOOG) (-12.2%): While Google’s advertising business has been far more resilient than the overall online ad industry, second quarter results showed slowing demand. After starting the year hiring at a 20% annualized growth rate, Google has greatly slowed hiring as online advertising demand has slowed abruptly.”
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Meta Platforms, Inc. (NASDAQ:META) is the communications services giant led by Mark Zuckerberg and responsible for the operation of social media platforms such as Facebook, Instagram, and WhatsApp. The company changed its name from Facebook to its current name quite recently, to signal the beginning of the next chapter of the internet, according to Zuckerberg, who spent $10 billion to build the metaverse in 2021 alone.
Cowen’s John Blackledge holds an Outperform rating on shares of Meta Platforms, Inc. (NASDAQ:META) as of October 13. The analyst also placed a $205 price target on the stock.
Gene Munster, an analyst at Loup Ventures, commented this October that Meta Platforms, Inc. (NASDAQ:META) is set to become one of the leaders in the tech sector. The analyst believes that looking forward, after interest rate increases slow down and investors begin betting on riskier stock returns again, the company would be well-positioned to become a leading tech stock.
Meta Platforms, Inc. (NASDAQ:META) was found among the 13F holdings of 184 hedge funds in the second quarter. Their total stake value was $18.2 billion.
Wedgewood Partners, an investment management company, mentioned Meta Platforms, Inc. (NASDAQ:META) in its third-quarter 2022 investor letter. Here’s what the firm said:
“Meta Platforms, Inc. (NASDAQ:META) detracted from performance during the quarter. Meta’s advertising revenue grew +3% (currency-adjusted) over 2021 and is up +70% since 2019 (pre-pandemic). The shift of advertisers and consumers to social media has been fairly dramatic and sticky. The Company reported $2.88 billion “daily active people” of its Family of Apps (as of June 2022) and is +35% higher than the comparable month pre-COVID (June 2019). Meta also serves over 10 million advertisers which is up from 8 million in January 2020. In spite of these impressive gains, the stock now trades at absolute levels well below where it traded before the pandemic. We suspect much of the market’s concern revolves around slowing revenue growth. It is fairly evident that there was a tremendous pull-forward of demand for many businesses and services over the past couple of years, and that the normalization of revenue growth from that “pull-forward” is hardly an existential crisis. Further, while Meta’s profit margins have fallen below pre-pandemic levels, it’s important to note that the Company likely hired well in excess of what it needed because it assumed the pandemic induced growth would continue. Meta has plenty of room to moderate its expense base and drive significant value by repurchasing shares at today’s historically depressed multiples.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 252
Amazon.com, Inc. (NASDAQ:AMZN) is an internet and direct marketing retail company operating in North America and internationally. The company began incorporating metaverse technology into its digital marketplace with its Amazon AR view, which lets shoppers use augmented reality to design and decorate their homes.
An Outperform rating was reiterated on shares of Amazon.com, Inc. (NASDAQ:AMZN) on October 17 by John Blackledge at Cowen. The analyst also placed a $195 price target on the stock.
Amazon.com, Inc. (NASDAQ:AMZN) beat revenue estimates in the second quarter of 2022, bringing in revenue of $121.23 billion, which beat estimates by $2.09 billion. This October, the company’s cloud computing division also announced profitable investment plans worth $5 billion to invest in the strengthening of Thailand’s cloud infrastructure over the next 15 years.
In total, 252 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter, with a total stake value of $30.1 billion. In comparison, 271 hedge funds were long the stock in the previous quarter, with a total stake value of $48 billion.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ:MSFT) is a systems software company also among the Big Five tech giants in the market today. The company focuses on Microsoft Teams and Microsoft Mesh as parts of its metaverse strategy. The former is the company’s online collaboration platform where its workplace lives virtually, while the latter is its corporate metaverse which seeks to create a seamless connection between the physical and digital worlds.
Brad Zelnick at Deutsche Bank holds a Buy rating on shares of Microsoft Corporation (NASDAQ:MSFT) as of October 18. The analyst also placed a $315 price target on the stock.
Microsoft Corporation’s (NASDAQ:MSFT) EPS in the fiscal fourth quarter of 2022 was $2.23, beating the previous quarter’s EPS of $2.22. The company’s revenue of $51.87 billion also beat the previous quarter’s revenue of $49.36 billion.
Our hedge fund data for the second quarter shows 258 hedge funds long Microsoft Corporation (NASDAQ:MSFT) in the second quarter, with a total stake value of $56 billion.
See also 11 Best Nanocap Stocks To Invest In and 10 Best FTSE Dividend Stocks To Buy.
