5 Stocks To Take From The Metaverse’s Booming Space

The pandemic-induced social transformation has made digitalization the new normal. The coronavirus outbreak has rapidly changed people’s lifestyle and alertness. People who were not fully accustomed to digital platforms for doing office work (working from home), ordering food and other daily needs, transferring money and making payments are now perfectly at home. listening to these activities.

In 2020, UNCTAD reported “The global crisis caused by the coronavirus pandemic has pushed us further into a digital world, and changes in behavior are likely to have lasting effects as the economy begins to recover. The future will be much more digital than This will give a major boost to the development of artificial intelligence and activities in cyberspace.

Metaverse – The Last Coming

The latest advent of the scanning space is the metaverse. In a nutshell, the metaverse means an interactive and collaborative virtual world. The digital space is powered by the use of virtual and augmented reality.

According to a Bloomberg estimate, the market opportunity for the metaverse is expected to reach $800 billion by 2024, up from $500 billion in 2020. The core market for online game makers and gaming hardware could reach 400 billion in 2024, while the rest of the activity will come from direct. entertainment and social media. Games, augmented reality, and virtual reality create a $413 billion primary market for the metaverse.

According to Verified Market Research, citing a PRNewswire article, the size of the metaverse market, in fact, is expected to reach $824.53 billion by 2030 from $27.21 billion in 2020. The market is expected to experience a CAGR by 39.1% from 2022 to 2030.

Stocks to Watch

We narrowed our search to five stocks that have the potential to become major players in the metaverse space.

NVIDIA Corp. NVDA is benefiting from the strong growth of GeForce graphics processing units (GPUs) for desktop and laptop computers, which is increasing gaming revenue. NVDA’s state-of-the-art GPUs are likely to play an important role in the development of the Metaverse. NVIDIA’s acquisition of Mellanox is a key catalyst in this regard.

The NVIDIA Omniverse Enterprise Platform is an end-to-end simulation and collaboration platform that fundamentally transforms complex design workflows in 3D space. This virtual content creation platform allows designers, creators and engineers to easily share their material in a digital space.

Zacks Rank #3 (Hold) NVDA has an estimated revenue growth rate of 2% for the current year (ending January 2023) and 14.4% for the next year. Zacks’ consensus estimate for current-year and next-year earnings has improved 1.2% and 0.4%, respectively, over the past 30 days.

Alphabet Inc. GOOGL has grown rapidly in the booming cloud computing market. GOOGL’s cloud offerings include Google Cloud Platform and Google Workspace, which are gaining momentum in the booming cloud computing market.

Additionally, Alphabet’s growing investments in infrastructure, security, data management, analytics, and AI remain major developments in the metaverse space. GOOGL’s growing efforts to strengthen its presence in the booming wearable space remain noteworthy.

Zacks Rank #3 Alphabet has an estimated revenue growth rate of 11.6% for the current year and 10% for the following year. Zacks’ consensus estimate for the current year and next year’s earnings improved 0.2% and 0.2%, respectively, over the past 30 days.

Apple Inc. AAPL encourages developers to use artificial intelligence and machine learning in their applications. AAPL’s focus on autonomous vehicles and augmented reality/virtual reality technologies presents a long-term growth opportunity.

To step up its efforts, Apple has acquired several small companies specializing in AR hardware, 3D games and VR software. These include SensoMotoric, Flyby Media, Emotient, TupleJump, Turi, Metaio, PrimeSense, and Lattice Data Inc. Additionally, AAPL’s ARKit helps third-party developers work on building AR experiences for its iOS platform.

Zacks Rank #3 Apple has an estimated revenue and earnings per share growth rate of 4.5% and 6.2%, respectively, for the current year (ending September 2023). AAPL has come in with beaten earnings in each of the past four reported quarters.

Snap inc. SNAP continues to focus on developing AR hardware through its Spectacle smart glasses. Adoption of the company’s AR lenses has been strong, especially after the launch of Lens Studio 2. In late 2020, Snap launched its first-ever 5G-enabled Landmarker lens (a new tool for overlaying AR on the world) in partnership with Verizon. The lens uses augmented reality technology from SNAP and 5G Ultra-Wideband capabilities from Verizon.

Solid adoption of products like Scan and AR Bar is driving the use of AR-based lenses, providing significant growth opportunities for SNAP. Additionally, the launch of Local Lenses, which enables shared and persistent AR experiences across much larger areas of the world, is expected to drive user engagement.

Snap has added Cartoon Lens powered by real-time machine learning to its portfolio. Additionally, the launch of Music Lenses in Lens Explorer and Dynamic Lenses, which allow developers to bring real-time insights from their app into Snapchat Lenses, are key enablers.

SNAP has an estimated revenue growth rate of 13.8% for the current year and 15.7% for next year. Zacks’ consensus estimate for current-year and next-year earnings has improved 66.7% and 20%, respectively, over the past 30 days. Snap wears a Zacks Rank #2 (Buy). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Autodesk Inc.ADSK’s business transition from perpetual licenses to cloud-based subscription services should benefit it in the long run. ADSK is well positioned to capitalize on the rapid adoption of computer-aided design and manufacturing through its comprehensive product portfolio.

Increased demand for Autodesk’s cloud-based products (BIM 360 cloud platform, Shotgun, and Fusion Lifecycle), mobile products (AutoCAD 360) and design suites will drive revenue growth. ADSK also benefits from its investment in digital infrastructure, which includes its online store.

Zacks Rank #3 Autodesk has an estimated revenue and earnings per share growth rate of 14.3% and 30.2%, respectively, for the current year (ending January 2023). The Zacks consensus estimate for the current year has improved 1.5% over the past 60 days.

The graph below shows the price development of the five aforementioned stocks since the beginning of the year.

Image source: Zacks Investment Research

5 shares ready to double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations climbed +143.0%, +175.9%, +498 .3% and +673.0%.

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Apple Inc. (AAPL): Free Inventory Analysis Report

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