In this piece, we will take a look at the top five metaverse stocks you can consider investing in. If you want an overview of the industry and details for these companies, head on over to 10 Metaverse Stocks to Invest In.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 83
NVIDIA Corporation (NASDAQ:NVDA) is the world’s leading designer of graphics processing units (GPUs). These are computing products responsible for rendering and visualizing virtual applications such as video games and other software. The company has dabbled in the metaverse software industry, by offering the NVIDIA Omniverse, which is a platform that allows companies to virtually simulate production and other environments. Additionally, its GPUs power the metaverse, as they are responsible for creating immersive virtual experiences.
In its fiscal Q3, NVIDIA Corporation (NASDAQ:NVDA) brought in $7 billion in revenue and $1.17 in non-GAAP EPS, beating analyst estimates for both. Tigress Financial raised the company’s price target to $400 from $230 in December 20221, outlining that the meta and omniverses hold strong potential for NVIDIA Corporation (NASDAQ:NVDA).
Insider Monkey’s Q3 2021 survey of 867 hedge funds revealed that 83 had owned NVIDIA Corporation (NASDAQ:NVDA) shares. The company’s market capitalization stood at $741 billion as trading ended on December 23rd, 2021. Insider Monkey’s Q3 2021 survey of 867 hedge funds revealed that 83 owned the company’s shares.
NVIDIA Corporation (NASDAQ:NVDA)’s largest investor is Rajiv Jain’s GQG Partners who owns 15 million shares worth $3 billion.
Vulcan Value Partners mentioned NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2021 investor letterer. It outlined that:
“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 120
Apple Inc. (NASDAQ:AAPL) is the world’s most valuable company that shot to fame and riches through the iconic iPhone. While it does not directly dabble in metaverses, and we’re unlikely to find out its plans given its highly secretive nature, Apple Inc. (NASDAQ:AAPL) has all the tools at its disposal to make a splash in the industry. These include experience with content, human interaction, its own developer tools, and management interest.
Apple Inc. (NASDAQ:AAPL) brought in $83 billion in revenue and $1.24 in GAAP EPS for its fiscal Q3, meeting analyst estimates for EPS but missing those for revenue. Wells Fargo kept its $165 price target for the company in a November 2021 analyst note sharing optimism for iPhone sales in China on the back of a demand increase for smartphones in the country.
Apple Inc. (NASDAQ:AAPL)’s largest shareholder is Warren Buffett’s Berkshire Hathaway who owns 887 million shares worth $125 billion.
An Insider Monkey analysis of 867 hedge fund holdings in Q3 2021 revealed that 120 owned the company’s shares. Apple Inc. (NASDAQ:AAPL)’s market capitalization stood at $2.8 trillion as trading closed on December 23rd, 2021.
ClearBridge Investments mentioned Apple Inc. (NASDAQ:AAPL) in its Q1 2021 investor letter. It stated that:
“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
Number of hedge fund holders: 243
Amazon.com, Inc. (NASDAQ:AMZN) is well known for its electronic commerce platform Amazon, which connects merchants all over the world to consumers. This platform also primes the company as a key player in the metaverse sphere, as it can allow its customers to virtually browse product catalogs, through AR product displays which is something that it has already experimented with.
For its fiscal Q3, Amazon.com, Inc. (NASDAQ:AMZN) brought in $110 billion in revenue and $6.12 in GAAP EPS as it missed analyst estimates for both. Cowen increased its price target to $4,500 in December 2021 sharing optimism for growth next year.
Amazon.com, Inc. (NASDAQ:AMZN)’s market capitalization stood at $1.74 trillion as trading ended on December 23rd, 2021. Insider Money’s Q3 2021 survey of 867 hedge funds revealed that 243 had bought the company’s shares.
Ken Fisher’s Fisher Asset Management is Amazon.com, Inc. (NASDAQ:AMZN)’s largest investor according to Insider Monkey’s research through a $6.3 billion stake via 1.9 million shares.
Polen Capital mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter, highlighting that:
“Amazon has also lagged as its revenue growth is slowing on the very difficult comparisons from last year when this behemoth was growing revenue by over 40%. We still expect exceptional long-term growth and significant margin expansion as the fastest growing (and now large) segments of Amazon are also generating the highest margins.”
2. Meta Platforms, Inc. (NASDAQ:FB)
Number of Hedge Fund Holders: 248
Meta Platforms, Inc. (NASDAQ:FB) is perhaps the world’s most serious or dedicated company when it comes to the metaverse. It has gone as far as to change its name from Facebook to Meta to reflect confidence in the industry. The company plans to expand its social network to create an immersive virtual reality that allows users to interact with each other in 3D. Additionally, it also sells a virtual reality headset.
Meta Platforms, Inc. (NASDAQ:FB) earned $29 billion in revenue and $3.22 in GAAP EPS, beating estimates only for EPS during its third fiscal quarter. UBS increased the social media holding company’s price target to $425 from $416 in December 2021, on the back of optimism for advertisement spend recovery.
During Q3 2021, 248 out of 867 hedge funds part of Insider Monkey’s research had bought stakes in the company. Meta Platforms, Inc. (NASDAQ:FB)’s market capitalization stood at $932 billion as of 23rd December 2021.
Ken Fisher’s Fisher Asset Management is Meta Platforms, Inc. (NASDAQ:FB) largest investor suggests data gathered by Insider Monkey through holding 7.5 million shares worth $2.5 billion.
Jefferies Group mentioned Meta Platforms, Inc. (NASDAQ:FB) in its Q3 2021 investor letter. It stated that:
“While still early, FB is in the process of building the platforms that will ultimately support the development of the Metaverse. We look at FB’s position through the lens of 4 current investment initiatives: 1) Oculus VR hardware, 2) Smart glasses, 3) Augmented Reality lenses, and 4) “Horizon Workrooms”
Oculus Virtual Reality hardware: Since acquiring Oculus in 2014 ($2B deal), FB has been focused on developing best-in-class hardware and complementary software & services to support VR experiences. The Oculus Quest 2 is FB’s newest VR headset; it retails at $299 and allows users to play games, try fitness classes, play sports, and watch concerts in virtual environments. Most importantly, Quest 2 is linked to users’ Facebook accounts, which means users can seamlessly connect with friends in virtual environments to play games or spend time together. We believe one of FB’s biggest differentiators in VR is its large array of non-gaming experiences that were designed for Oculus. For instance, users can explore extreme terrain in National Geographic Explore VR, join virtual fitness classes, or simulate being a chef. As FB’s hardware continues to improve and becomes less cumbersome, we would expect a flywheel of greater developer and user adoption of VR…”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 253
Microsoft Corporation (NASDAQ:MSFT) is one of the largest software companies in the world. It has gained popularity due to its Windows operating system which remains the dominating product globally in its category. It is also building the Mesh platform, which is intended to be a multiverse based around the software company’s Teams and other applications. Microsoft Corporation (NASDAQ:MSFT) also sells the HoloLens VR headset, which will be used to access the metaverse.
As its first fiscal quarter ended, Microsoft Corporation (NASDAQ:MSFT) reported $45 billion in revenue and $2.27 in non-GAAP EPS, beating analyst estimates for both. Wells Fargo set a $400 price target for the company in November 2021, sharing that Microsoft Corporation (NASDAQ:MSFT)’s Azure cloud computing platform and other growth areas spell for a positive future.
Microsoft Corporation (NASDAQ:MSFT)’s largest investor is Ken Fisher’s Fisher Asset Management who owns 25 million shares worth $7 billion. Insider Monkey’s Q3 2021 survey of 867 hedge funds revealed that 253 owed the company’s shares.
Microsoft Corporation (NASDAQ:MSFT)’s market capitalization stood at $2.5 trillion on December 23rd, 2021.
Polen Capital mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q3 2021 investor letter. It stated that:
“After modest Portfolio activity during the second quarter of 2021, activity increased during the third quarter. We would broadly characterize the various trades into two objectives: 1) managing risk, and 2) managing valuation. In both cases, we aimed to maintain the Portfolio’s growth profile. In aggregate, we believe we were able to increase expected earnings growth while reducing risk and the overall portfolio valuation… We also trimmed Microsoft, which had grown to nearly 10% of the Portfolio. At an 8% weighting, it still represents one of our largest positions.”
Disclosure: None. You can also take a peek at the Top Investors’ Stock Portfolio: 10 Mid-cap Stocks To Buy and Top Tech Stock Picks of Amir Mokari’s Emerson Point Capital.
