Tuesday , 17 May 2022

What Is the Metaverse? How Is It Intended To Work?

Usually, new and exciting stocks or financial instruments capture a lot of attention due to the awe factor associated with a fascinating new industry…[and] “metaverse” stocks…[are no exception]. This post…[defines] what the metaverse is and how it is intended to work.

This version of the original article from warriortrading.com has been edited [ ] and abridged (…) to provide you with a faster and easier read. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.

What is the metaverse?

…The metaverse generally refers to the concept of a highly immersive virtual world, where users will be able to interact with other humans and objects in virtual worlds in a deeper, multi-sensory, richer way.

It encompasses technologies like augmented reality (AR), virtual reality (VR), artificial intelligence (AI), procedural image generation, cryptocurrencies, non-fungible tokens (NFTs), among a huge number of other developments.

In layman’s terms, the metaverse is a virtual reality world where you can go to work, go to school, browse store shelves, play games, watch concerts, and many other things without leaving your (physical) home…

How the metaverse is intended to work

The metaverse has been described as the next generation of the internet…[and] understanding its ins and outs…[is] a bit complicated because we’re talking about something that doesn’t exist yet…

While building blocks of the metaverse currently exist, no one really knows what the reality will look like …[and], according to Zuckerberg, it could take up to ten years before the key aspects of the metaverse become mainstream. [In the meantime, many] companies are pouring millions of dollars into its development…

It’s important to note that no single company can be the sole owner of the metaverse, just like how no one owns the internet. Nonetheless, a handful of companies may attempt to monopolize their respective territories of the metaverse, similarly to how a few tech firms dominate the internet today… making money off apps and through ads, shopping carts, and subscription services.

Companies that Benefit Immensely From the Metaverse

Companies directly involved in the development of the metaverse are the likeliest to see their stock prices move higher in the coming months and years…[and below are 5] stocks that could benefit immensely from the growing interest in the metaverse, namely:

  1. Meta Platforms Inc. (NASDAQ: FB)
    • [Zuckerberg changed the Facebook name]…to Meta to reflect their heightened focus on the metaverse…[and,] with a mind-boggling 2.89 billion monthly active users,…[the company] looks well-positioned to go all-in on the metaverse.
  2. Microsoft Corp. (NASDAQ: MSFT)
    • [Microsoft]…plans to introduce Mesh, a collaborative platform that allows a user to beam a realistic likeness of himself into the headset of another user…[making them feel] like they’re connected inside the same room.
    • Microsoft…[has] 145 million daily active users on its Teams communications app that it can leverage for its metaverse goals…[and] wants to enable metaverse apps for entertainment, business, training, and education.
  3. Nvidia (NASDAQ: NVDA)
    • Nvidia, a leading global manufacturer of GPUs and integrated circuit technologies, has ramped up its efforts to…use its position in the semiconductor industry to provide the computing hardware needed to run metaverse components…[This] will be a huge boost for Nvidia since most of its components require more computing power and increase demand for GPUs…
  4. Roblox Corp. (NYSE: RBLX)
    • …Roblox has a creative platform of about 47 million daily active users globally…[that] allows users to create unique digital avatars of themselves…[and] to program and create their own experiences to socialize and interact with other users in a 3D world…[That] is perfectly in line with metaverse goals and, although Roblox’s concept of a virtual world is still in the early stages, the company is one of the earliest players in the development of the metaverse.
  5. Unity Software Inc. (NYSE: U)
    • The company plans to buy VFX studio Weta Digital…to boost its talent and toolset for 3D content creation as it prepares to jump into the metaverse realm.
    • Every month 1.5 billion devices download content made with Unity and the company…provides the tools that help the developers to drive engagement, enhance game performance, and optimize applications with digital ads and in-app purchases…The company aims to have 60% to 80% of metaverse content created using its software…

Metaverse stocks are a new trend but traders are not entirely sure how long these companies will take to make their virtual-world dream a reality. [That being said, according to analysts polled by Bloomberg, the metaverse is likely to grow to an $800 billion market by 2024…

 

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