5 Best Metaverse Stocks To Invest In

In this article, we will take a look at the 5 best metaverse stocks to invest in. To go through our detailed analysis of the Metaverse and its advancements, you can go directly to the 12 Best Metaverse Stocks To Invest In.

5. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 131

Earlier in June, Apple, Inc. (NASDAQ:AAPL) revealed its highly anticipated $3,500 Vision Pro headset which overlays digital images on top of the real world, allowing users to have an immersive experience when using games, apps, and software.

Our hedge fund data for the first quarter shows 131 hedge funds long Apple Inc. (NASDAQ:AAPL). Their total stake value was $165 billion. Holding 915.6 million shares in the company, Warren Buffett’s Berkshire Hathaway was the largest stakeholder in Apple Inc. (NASDAQ:AAPL) at the end of the first quarter.

Silver Ring Value Partners made the following comment about Apple Inc. (NASDAQ:AAPL) in its first-quarter 2023 investor letter:

“Exited the Apple Inc. (NASDAQ:AAPL) put options position, as I came to the conclusion that I was wrong about the degree to which the stock is overvalued. While I still believe it’s optimistically priced, the fundamentals over the last few years made me believe that my initial decision to buy the put options was wrong.”

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 132

NVIDIA Corporation (NASDAQ:NVDA) is an American multinational technology company that manufactures graphics processors, mobile technologies, and desktop computers. A prominent player in the race towards the metaverse, and one of the very few that achieved success within this sphere, NVIDIA Corporation (NASDAQ:NVDA) — whose metaverse tool is called Omniverse — is also involved in various related industries, including artificial intelligence and virtual reality.

NVIDIA Corporation (NASDAQ:NVDA) experienced a positive hedge fund sentiment in Q1 2023, as 132 hedge funds tracked by Insider Monkey owned stakes in the company, up from 106 in the previous quarter.

Alger Spectra Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2023 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. Simply put. Nvidia’s computational power is a critical enabler of Al and therefore critical to Al adoption, in our view. As such, we believe Nvidia is a long-term high unit volume growth opportunity. During the period, NVIDIA reported fiscal fourth-quarter results that met expectations, as the company navigated. through an inventory correction associated with the broad macroeconomic slowdown. Moreover, management gave fiscal year earnings guidance that was better than analyst estimates, noting strong year-over-year growth in gaming and data centers. Management’s constructive assessment of 2023 prospects. coupled with the rapid rollout and adoption of generative Al offerings, led to positive share price performance.”

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

Number of Hedge Fund Holders: 220

Formerly known as Facebook, Meta Platforms, Inc. (NASDAQ:META) changed its name back in October 2021 to announce its focus on the metaverse, and has poured billions of dollars into chasing the metaverse through its Reality Labs segment. Additionally, the company provides Meta Quest virtual reality devices, software, and metaverse-related content through the Meta Quest Store. This platform enables individuals to immerse themselves in a wide range of virtual experiences, including gaming, fitness, and entertainment.

According to Insider Monkey’s first quarter database, 220 hedge funds were long Meta Platforms, Inc. (NASDAQ:META), compared to 194 funds in the prior quarter. Billionaire Philippe Laffont’s Coatue Management is one of the largest stakeholders of the company, with a position worth $1.70 billion.

Artisan Value Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q1 2023 investor letter:

“Our top contributors in Q1 were Meta Platforms, Inc. (NASDAQ:META), Warner Bros Discovery (WBD) and FedEx. Following sharp declines in 2022, shares of Meta Platforms have more than doubled since their early November 2022 lows. Last year’s drawdown created a highly favorable risk-reward, which we took advantage of by adding to our position. Management has wisely, in our view, recalibrated its spending plans to focus on profitability amid a weaker advertising environment, increased TikTok competition and Apple’s privacy changes. While investors got ahead of themselves back in 2021, extrapolating pandemic growth rates into the future, Meta is still a highly successful enterprise generating over $120 billion of revenue annually on a run-rate basis and has more than $40 billion in cash on its balance sheet to help it navigate its future course. Recent usage and engagement trends for Facebook and Instagram have been positive, and Reels—Meta’s answer to TikTok—is gaining traction.”

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

Number of Hedge Fund Holders: 243

While Amazon.com, Inc. (NASDAQ:AMZN) does not currently have any direct metaverse offerings, the company has been exploring the technology for a considerable period of time. Earlier this May, Amazon.com, Inc. (NASDAQ:AMZN) launched a new service, called “Amazon Anywhere,” that will allow customers to purchase physical products from its online store while playing video games or interacting in virtual reality. Amazon.com, Inc. (NASDAQ:AMZN) said its new service will be launched within Peridot, an augmented reality game from Pokémon Go developer Niantic. The e-giant said that gamers can link their Amazon account to the game, and purchase T-Shirts, hoodies, phone accessories and throw pillows featuring characters from the game.

There were 243 hedge funds long Amazon.com, Inc. (NASDAQ:AMZN) in the first quarter. Their total stake value was $25.8 billion.

This is what Baron Funds said about Amazon.com, Inc. (NASDAQ:AMZN) in its first-quarter 2023 investor letter:

“Amazon is probably the best example of a company that was built with an ability to rapidly adapt to change from its very inception. We have written a lot over the years about how Amazon’s culture and organizational structures prioritize and enable rapid innovation. Historically, programming code was written in a sequential waterfall fashion, creating significant interdependencies between different developer teams in the organization and slowing down innovation. Amazon famously required all developers to expose their work externally via standardized Application Programming Interfaces (APIs). A novel and risky approach, it enabled development teams to work in parallel, created a rapid feedback loop with customers, and turned Amazon into one of the most innovative companies in the world. The culture of constant experimentation and the willingness to take risks and fail fast (remember the Amazon Fire phone?) became the core pillars of the company’s culture and led to revolutionary ideas like third-party sales (letting competitors sell similar products alongside your own), Amazon Prime Video, and Amazon Web Services (AWS), making the company a disruptor and leader in multiple multi-trillion-dollar industries.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 289

Although Microsoft Corporation (NASDAQ:MSFT) isn’t exactly a metaverse stock when compared to others in this list, its artificial intelligence (AI) capabilities could prove invaluable to the technology’s development. OpenAI, a prominent AI company, forged a long-term partnership with Microsoft Corporation (NASDAQ:MSFT) due to the capabilities of its cloud-computing product, Azure, which offers the essential power and storage required to scale AI applications for a vast user base. As a result, Microsoft’s pioneering advancements in AI and its robust cloud-computing offering position the company as a potential beneficiary in the metaverse landscape.

According to Insider Monkey’s first quarter database, 289 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to 259 funds in the earlier quarter. Billionaire Bill Gates’ Bill & Melinda Gates Foundation Trust is the largest Microsoft stakeholder, with a position worth $11.3 billion.

Ariel Global Fund made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2023 investor letter:

“Enterprise software provider, Microsoft Corporation (NASDAQ:MSFT) also traded higher in the period alongside the investor enthusiasm for Artificial Intelligence. Microsoft is well positioned as this new technology advances given its large investment in Open AI, the parent company of ChatGPT. Looking ahead, we continue to like Microsoft’s solid fundamentals, competitive positioning and long-term business outlook. We anchor on the company driving value creation by capitalizing on a broad and deep set of opportunities, most notably within Azure, its hybrid cloud infrastructure. The platform continues to demonstrate share gains and strong multi-year purchase intent as enterprises transition to cloud based platforms. At current trading levels, we believe Microsoft’s risk/reward is skewed to the upside.”

See also 10 Technology Dividend Stocks Billionaires Are Loading Up On and 10 Internet of Things (IoT) Stocks Billionaires Are Loading Up On.