5 Best Metaverse Stocks To Buy Right Now

In this article, we discuss 5 best metaverse stocks to buy now. If you want to read our detailed discussion on the metaverse, head over to 13 Best Metaverse Stocks To Buy Right Now. 

5. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 163

Alphabet Inc. (NASDAQ:GOOG) has undertaken many acquisitions to enhance its involvement in Metaverse technologies, including the acquisition of Raxium to gain access to AR/VR hardware solutions. Within the Google Metaverse initiative, ongoing projects like Google Iris and Starline aim to develop devices that offer complete immersion for users in virtual environments. Alphabet Inc. (NASDAQ:GOOG) has also introduced multiple VR and AR products, including Google Glass, Google Glass Edition 2, and Google Cardboard, among others. It is one of the best metaverse stocks to monitor. 

According to Insider Monkey’s third quarter database, Alphabet Inc. (NASDAQ:GOOG) was part of 163 hedge fund portfolios, compared to 152 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 43.7 million shares worth $5.7 billion. 

The FPA Crescent Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its fourth quarter 2023 investor letter:

“Alphabet Inc. (NASDAQ:GOOG) continued going from strength to strength during 2023 despite concerns that competition may infringe on the company’s dominant position in Search. Thus far, Alphabet has continued to hold its own, and we look forward to seeing how the company incorporates further AI developments across the Alphabet ecosystem. Lastly, we are hopeful that the impending arrival of a new CFO will bring a renewed focus on efficiency – an area where we believe Alphabet has ample room for improvement.”

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 180

NVIDIA Corporation (NASDAQ:NVDA), based in Santa Clara, California, is a global provider of graphics, compute, and networking solutions. It is one of the top metaverse stocks to monitor. In September 2022, NVIDIA Corporation (NASDAQ:NVDA) introduced its inaugural software and infrastructure-as-a-service, called NVIDIA Omniverse Cloud. This suite of cloud services is designed for artists, developers, and enterprise teams, enabling them to create, publish, operate, and engage with metaverse applications from any location.

On February 7, Morgan Stanley increased its price target for NVIDIA Corporation (NASDAQ:NVDA), citing anticipated gains in artificial intelligence for the semiconductor company. Analyst Joseph Moore, with an Overweight rating on Nvidia, raised the price target to $750 from $603. This adjustment suggests approximately 10% potential upside from the current levels. Moore is optimistic about short-term data points indicating even more potential gains over the next two to three quarters.

According to Insider Monkey’s third quarter database, 180 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA), compared to 175 funds in the prior quarter. Rajiv Jain’s GQG Partners is a prominent stakeholder of the company, with 14 million shares worth $6.10 billion. 

Polen Focus Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2023 investor letter:

“Apple and NVIDIA Corporation (NASDAQ:NVDA) alone drove over 1,100 basis points of the Russell 1000 Growth Index’s 42% return, so not owning them was a meaningful headwind to our relative return in 2023. NVIDIA shares rocketed higher by well over 200% in 2023 although they slightly underperformed our Portfolio and the Russell 1000 Growth in the fourth quarter. Generative AI has been a huge boon for NVIDIA as the use of LLMs like ChatGPT and others requires tremendous processing power that, today, is mostly provided by NVIDIA’s GPUs. All large cloud service providers, AI factories, and many large consumer internet companies are laying the foundation for generative AI by deploying NVIDIA GPUs and other parallel processing chips to be able to do large scale generative AI either for internal use (i.e., Meta) or as a service for others (i.e., AI factories) or both (cloud service providers such as Amazon, Microsoft, and Google).

Given many of NVIDIA’s customers or its end customers are still very much in the experimentation phase with generative AI, it is unclear how sustainable the current demand for GPUs truly is. At the same time, it is known that NVIDIA has historically been highly cyclical. By the end of 2024, we believe NVIDIA will already account for roughly half the market for datacenter chips, servers, and networking equipment, which is unprecedented. Even though the valuation at 25x forward earnings doesn’t look very demanding at first glance, it assumes NVIDIA will own virtually the entire datacenter chip market in just the next few years and will sustain year-on-year growth despite being a cyclical business that is currently experiencing much higher new peaks.

We believe NVIDIA is a highly advantaged business, but we also believe the long-term growth outcomes are currently too variable, and the expectations built into the company’s $1.2 trillion valuation as of this writing assume the most optimistic of those scenarios.”

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 234

Meta Platforms, Inc. (NASDAQ:META) is one of the top metaverse stocks to monitor. Meta envisions the metaverse as the next evolution of the internet, a shared digital space where users can interact with each other, digital objects, and the environment in real-time. It is one of the best metaverse stocks to invest in. 

On February 1, Meta Platforms, Inc. (NASDAQ:META) reported a Q4 GAAP EPS of $5.33 and a revenue of $40.11 billion, outperforming Wall Street estimates by $0.39 and $940 million, respectively. Meta Platforms’ is scheduled to pay a $0.50 per share on March 26, to stockholders of record as of February 22. This is the tech giant’s first quarterly dividend. 

According to Insider Monkey’s third quarter database, 234 hedge funds were bullish on Meta Platforms, Inc. (NASDAQ:META), compared to 225 funds in the prior quarter.

The FPA Crescent Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its fourth quarter 2023 investor letter:

“Meta Platforms, Inc. (NASDAQ:META) saw a welcome recovery in engagement and revenue year-to-date following a tough 2022. The company has continued to offer new solutions that allow advertisers to target customers effectively and efficiently via one of the world’s leading digital platforms. Moreover, operating profits are rising due to an organization-wide focus on improving productivity and accelerating the time to market for new products. However, overall profitability continues to be weighed down by losses in the Reality Labs segment. But, there is a positive optionality that Meta will emerge from the AI arms race as one of the leading players in the industry.”

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) ranks 2nd on our list of the best metaverse stocks. The online retail giant launched Amazon Anywhere, a service that allows customers to browse and purchase physical products from Amazon within virtual environments, including video games, augmented reality (AR), and third-party mobile apps, marking the company’s initial foray into the metaverse. 

On February 1, Amazon.com, Inc. (NASDAQ:AMZN) reported a Q4 EPS of $1.00 and a revenue of $170 billion, outperforming Wall Street estimates by $0.20 and $3.74 billion, respectively. 

According to Insider Monkey’s third quarter database, 286 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), compared to 278 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, with 41.35 million shares worth $5.25 billion.

Polen Focus Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:

“For the full year, the top relative and absolute contributors were Amazon.com, Inc. (NASDAQ:AMZN), Salesforce, and ServiceNow. Amazon shares appreciated 88% in 2023, driven primarily by rapidly expanding operating profit margins and free cash flow growth. After the pandemic, Amazon experienced a period of inefficiency and over investment in its distribution and logistics infrastructure. Amazon is now leveraging these investments as growth returned to its e-commerce business in 2023 after a highly unusual 2022. At the same time, Amazon’s rapidly growing and high-margin advertising business is contributing strongly to the entire company’s operating profit growth. The AWS (Amazon Web Services) cloud infrastructure and services business continued to slow in 2023 as customers anticipating a more difficult economic environment looked to save money on their cloud spend, but these cloud spending optimizations began to stabilize in the second half of 2023. We now expect customer interest in generative AI will begin to contribute to growth.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 306

Microsoft Corporation (NASDAQ:MSFT) is one of the best metaverse stocks to buy. Microsoft’s metaverse products and services include Microsoft Mesh, AltspaceVR, HoloLens, Azure Spatial Anchors, and Gaming and Xbox. On January 31, Microsoft’s fiscal year Q2 results surpassed expectations, earning praise from Wall Street. The positive performance is attributed to the company’s gains from artificial intelligence. AI contributed to a six percentage point growth for Azure during the quarter, leading to a 30% growth rate for Azure, surpassing the company’s earlier guidance. The results indicate the ongoing impact and potential of AI in Microsoft’s business.

According to Insider Monkey’s third quarter database, 306 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to 300 funds in the earlier quarter. Bill & Melinda Gates Foundation Trust is the largest position holder in the company, with 39.2 million shares worth $12.4 billion. 

Madison Sustainable Equity Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2023 investor letter:

“Microsoft Corporation’s (NASDAQ:MSFT) sustainable scorecard was updated with an unchanged rating of Above Average. The company’s board has an official Environmental, Social, and Public Policy Committee in addition to the traditional Audit, Compensation, and Governance committees. For ten years, Microsoft has publicly released data measuring the diversity of its workforce. With the prominence of Artificial Intelligence (AI), the company has launched a 5-point blueprint for governing AI to address public policy and regulation. Environmentally, Microsoft has multiple programs to be carbon negative by 2030. The company has signed Purchase Power Agreements for carbon-free energy totaling 13.5 Gigawatts.”

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