In this article, we discuss 5 most promising metaverse stocks to buy. If you want to see more most promising metaverse stocks to buy, the risk/reward, and methodology of this list, go directly to 10 Most Promising Metaverse Stocks to Buy.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 135
Apple Inc. (NASDAQ:AAPL) ranks #5 on our list of 10 Most Promising Metaverse Stocks to Buy given 135 hedge funds in our database owned shares of the tech giant at the end of Q4. According to Bloomberg in 2022, Apple is working on making a virtual reality/augmented reality (VR/AR) headset and potentially a 3D mixed reality world based on posted job listings. In terms of its price, the headset could cost $2,000 to $3,000 which would be significantly more expensive than Apple Inc. (NASDAQ:AAPL)’s iPhones. Nevertheless, the price could decline over time if there is enough demand. If successful, the metaverse could help Apple Inc. (NASDAQ:AAPL) potentially increase its services sales and also help diversify from the iPhone which accounted for 56% of the tech giant’s total sales in the first quarter of fiscal 2023.
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 152
Alphabet Inc. (NASDAQ:GOOG) is a tech giant that owns the third largest cloud computing platform which could help power some future metaverse companies in the future. Alphabet Inc. (NASDAQ:GOOG) has also worked on an AR product, Google Glasses, in the past that wasn’t a success but that has nevertheless given the company experience. Given the metaverse’s potential, the tech giant is continuing to work on VR and AR products which could potentially help diversify its sales from search in the long term. Given its huge userbase in Android, search, and YouTube, Alphabet Inc. (NASDAQ:GOOG) can also easily market new metaverse products at relatively low cost.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 194
Meta Platforms, Inc. (NASDAQ:META) is a metaverse company given it has invested tens of billions into building various future metaverse products. According to Insider in October 2022, Meta Platforms, Inc. (NASDAQ:META) has invested $36 billion into its Reality Labs division since 2019 and the company plans to invest a “significant amount” of more money into building the metaverse over the next three to five years. Although its current metaverse products still lose money, Meta Platforms, Inc. (NASDAQ:META) has potential in the long term given its huge userbase and world class engineering talent. 194 hedge funds in our database owned shares of Meta Platforms, Inc. (NASDAQ:META) at the end of Q4, ranking the stock #3 on our list of 10 Most Promising Metaverse Stocks to Buy.
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 240
Amazon.com, Inc. (NASDAQ:AMZN) is potentially well positioned to benefit from the growth of the metaverse given it owns the leading cloud computing platform in Amazon Web Services which could help power some metaverse apps in the future. Considering it is also the leading e-commerce company in the United States, Amazon.com, Inc. (NASDAQ:AMZN) could also potentially realize more e-commerce sales from a future metaverse. Amazon.com, Inc. (NASDAQ:AMZN) also has potential in terms of making metaverse games given its gaming divison.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 259
Microsoft Corporation (NASDAQ:MSFT) ranks #1 on our list of 10 Most Promising Metaverse Stocks to Buy given 259 hedge funds in our database owned shares of the tech company at the end of Q4. Microsoft Corporation (NASDAQ:MSFT) already has a mixed reality headset called the HoloLens on the market and the company also has the second largest cloud computing platform which could help power a future metaverse. Microsoft Corporation (NASDAQ:MSFT) has a forward P/E ratio of 23.77 and a dividend yield of 1.07% as of March 4.
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