3 Gaming Stocks to Invest Early in The Metaverse
Mark Zuckerberg's big bet on "The next chapter of the internet" has left the tech world on edge, waiting for what's next to come. Knowing its going to be a long road ahead there are many companies set to benefit with the creation of the Metaverse.
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Investing Early into the Metaverse
It should be known that most companies poised to be successful with the introduction of years to come, are already established tech companies. With the exception of a few, most tech companies have had their best previous two years greatly due to the pandemic.
Any company that an investor may choose with the "Metaverse" in mind may experience a great amount of volatility for the foreseeable future.
1.) Roblox: RBLX
Roblox is an online game platform and game creation system developed by Roblox Corporation. It allows users to program games and play games created by other users. At NextLevel we see it as a great opportunity to get exposure to the gaming & entertainment side of the metaverse.
Strengths, weaknesses & Outlook
Even though Roblox Corporation recently had its IPO, they have been around since the early 2000's. Roblox already offers VR with Oculus Rift and HTC Vive. Roblox is one of the only companies to do so successfully. Roblox is commonly associated being a children's game with most of its user base being young teenagers. "67% of users are under the age of 16. Only 14% of Roblox's users are over 25 years old" (Dean, 2021) This can also be seen as a major growth opportunity as VR becomes more accessible, practical and enjoyable for older age demographics.
RBLX NextLevel 2022 y/e Price Target: N/A
2.) Microsoft corporation: msft
If you are alive in the 21st century you have heard of Microsoft. Microsoft recently became the biggest company in the world (by market cap) surpassing Apple at over $250,000,000,000,000. Microsoft will be sure to benefit as the Metaverse comes to life as they are already one of the most successful companies in the gaming industry.
Strengths, weaknesses & Outlook
$MSFT is positioned very well when it comes to profiting from the Metaverse. Microsoft already announced they are revealing new Teams features at the ignite conference that will let businesses create immersive spaces where workers can meet. It would not be surprising if Microsoft soon releases VR for the Xbox, something that Sony has already done. Microsoft has all to gain and nothing to lose if they play their cards right. VR is still a very new technology that will rapidly advance. Microsoft doesn't technically need to be early, they just need to be right. And if they are right... well... we will just have to see.
MSFT NextLevel 2022 y/e Price Target: $375
3.) Tencent holdings: TCEHY
Tencent Holdings Ltd. is an investment holding company. It operates through the following segments: Value-Added Services, FinTech and Business Services, Online Advertising, and Others. The Value-added Services segment involves online and mobile games, community value-added services, and applications across various Internet and mobile platforms.
Tencent is an absolute behemoth of a video game investing company. They are current owners or partial owners of companies such as Riot Games, Supercell, Epic Games, Activision Blizzard and even Discord!
Strengths, weaknesses & Outlook
When it comes to gaming in the Metaverse Tencent looks very appealing. When thinking about investing in the Metaverse it may seem easy to over look different demographics and other countries. Investors often to quickly overlook the most populated country in the world... China. However, investing in Chinese companies as a US investor comes with many risks that need to be seriously considered. $TCEHY is currently down from its 52 week high of $99.40 along with most other Chinese companies.
Tencent has already publicly mentioned they are putting a great amount of focus on the "Metaverse". At over half a trillion USD market cap if all goes well politically Tencent will surly prevail as a winner in the Metaverse. High risk, high reward.
TCEHY Nextlevel 2022 y/e price target: $75-$100
References
https://backlinko.com/roblox-users