If you have questions about what the Metaverse is, you’re not alone. While it is still a new concept in its early stages, it is gearing up to be the next big step forward for many technology companies.
The Metaverse will be looking to combine technologies like blockchain networks, cryptocurrencies, and virtual reality into a new immersive experience.
The Metaverse will be a digital online world where users can interact with each other through the use of virtual reality equipment.
Several industries are gearing up to be a major part of the Metaverse. These include digital payments, gaming, and eCommerce.
This article will look at the ten (10) best Metaverse stocks for Canadian investors to consider. We will cover key facts, what the company does, and why they may impact the Metaverse.
What is a Metaverse Stock?
Metaverse stocks are publicly traded companies that will have a large part in the future of the Metaverse.
They are mostly tech companies. Many of them trade on the NASDAQ, although there are some Metaverse stocks on the TSX as well.
The top Metaverse stocks are all recognizable companies that are leaders in their respective sectors.
Here is the list of the best Metaverse stocks to invest in right now:
- Meta Platforms (NASDAQ: META)
- Roblox (NYSE: RBLX)
- NVIDIA (NASDAQ: NVDA)
- Microsoft (NASDAQ: MSFT)
- Walt Disney Co (NYSE: DIS)
- Apple Inc (NASDAQ: AAPL)
- Electronic Arts (NASDAQ: EA)
- AMD (NASDAQ: AMD)
- Unity Software (NYSE: U)
- Shopify (NYSE: SHOP)
Note: all the facts and figures are as of February 2023.
Top 10 Metaverse Stocks To Consider in 2024
Meta Platforms (NASDAQ:META)
Key Facts for Meta Platforms:
- Market Cap: $448 billion
- 52-week Trading Range: $88.09 – $236.86
- PE Ratio: 20.63
- Sector: Social Media
Meta Platforms is the company that is usually most associated with the Metaverse. After all, the company did change its name and branding from Facebook to Meta Platforms late in 2021.
It is certainly a controversial company that often generates media attention due to privacy issues related to its Facebook and Instagram social media platforms. The company also owns Oculus VR and the Whatsapp messaging platform.
The company is attempting to focus on developing the new Metaverse with its Reality Labs division. It is leveraging its social media ecosystems and the Oculus VR hardware.
Meta CEO Mark Zuckerberg is one of the first big tech CEOs to begin discussing the Metaverse.
Meta’s stock saw the largest single-session decline in the history of the stock market following its 2021 Q4 earnings. At the time, the company lost $230 billion off of its market cap.
Roblox (NYSE:RBLX)
Key facts for Roblox:
- Market Cap: $24.56 billion
- 52-week Trading Range: $21.65 – $40.88
- PE Ratio: N/A
- Sector: Metaverse gaming
Roblox was a very publicized IPO when the stock went public back in March of 2021.
The Roblox platform is a virtual Metaverse gaming environment. Users can create their own games and fully immersive and interactive environments. While everyday people create most of the maps within Roblox, large companies such as Nike have also started to explore what a virtual store would look like within the game.
The Roblox game is a downloadable Android, iOS, and Windows app with a web-based browser version.
As of the third quarter of 2022, Roblox had nearly 60 million daily active users, many of which are between the ages of 9 and 16.
Roblox has seen its performance suffer as the COVID-19 pandemic restrictions have eased. The stock was also beaten down by the stock market correction that started in 2022.
NVIDIA (NASDAQ:NVDA)
Key Facts for NVIDIA:
- Market Cap: $532 billion
- 52-week Trading Range: $108.13 – $213.88
- PE Ratio: 57.36
- Sector: Semiconductors, GPUs, gaming, artificial intelligence, data centers
NVIDIA is the largest chip design company by market cap. It is an industry leader in many sectors, including chips, artificial intelligence, and GPUs.
The company also has its own version of the Metaverse in development called the Omniverse platform.
In the Omniverse, developers can build apps and technology for the Metaverse in a collaborative environment.
NVIDIA aims to provide software and developer tools for enterprises and content creators alike in the Metaverse.
NVIDIA chips power some of the largest companies in the world, including Tesla, Microsoft, Amazon, Meta Platforms, and Alphabet.
Related: Top Metaverse ETFs in Canada.
Microsoft (NASDAQ: MSFT)
Key Facts for Microsoft:
- Market Cap: $1.92 trillion
- 52-week Trading Range: $213.43 – $315.95
- PE Ratio: 28.67
- Sector: Enterprise software, gaming, cloud solutions
Microsoft is the second-largest publicly traded US company by market cap, trailing only Apple.
Microsoft has several segments of note, including its Windows operating system, Xbox gaming, and Azure cloud services.
Microsoft acquired gaming titan Activision-Blizzard last year for a record $68.7 billion.
CEO Satya Nadella has likened the Metaverse to creating games for virtual and digital interaction. This explains Microsoft’s acquisition of Activision-Blizzard.
Microsoft also owns several key Metaverse gaming franchises, including Minecraft. It also plans to leverage popular Activision-Blizzard franchises like Call of Duty, Overwatch, and World of Warcraft to move further into this space.
The Walt Disney Co (NYSE: DIS)
Some Key Facts about Walt Disney:
- Market Cap: $192 billion
- 52-week Trading Range: $84.07 – $150.79
- PE Ratio: 58.13
- Sector: Entertainment and Media
Walt Disney might not be the first company that comes to mind when considering futuristic technology in the Metaverse.
The global entertainment conglomerate recently released plans to create a virtual world where fans can directly interact with Disney characters.
With many high-quality intellectual properties like Star Wars, the Marvel Universe, and homegrown worlds like Frozen, Disney has plenty to draw from their Metaverse aspirations.
The company turned heads late in 2022 when it brought back former CEO Bob Iger in a sudden change in the corner office.
Apple Inc (NASDAQ: AAPL)
Key Facts for Apple:
- Market Cap: $2.4 trillion
- 52-week Trading Range: $124.17 – $179.61
- PE Ratio: 25.90
- Sector: Technology
Apple is a company that needs no introduction. It is the world’s most valuable company by market capitalization, with over 2 billion devices in use globally.
It should be no surprise that Apple is also gearing up for the Metaverse. Rumours are swirling that Apple will release its own AR/VR headset at some point in 2023.
The company also has plenty of optionality with its iPhone and iPad devices. Apple’s iPhones already come with augmented reality filters on its camera app.
If any company can make a splash and legitimize the Metaverse, it would be Apple.
Electronic Arts (NASDAQ:EA)
Key Facts for Electronic Arts:
- Market Cap: $30.7 billion
- 52-week Trading Range: $109.24 – $142.79
- PE Ratio: 30.19
- Sector: Gaming
Electronic Arts is one of the largest game makers in the world. It is known for its sports franchises like NFL Madden and FIFA, as well as Mass Effect, Battlefield, and The Sims.
Like Microsoft, Electronic Arts believes the Metaverse will revolve around the gaming industry.
Electronic Arts is introducing a style of gameplay called Metagaming. It has shown teamwork and progression in the upcoming game, Battlefield Hardline.
The company is also looking at play to earn games that involve NFTs and cryptocurrencies.
Related: Top Metaverse Crypto Coins.
AMD (NASDAQ:AMD)
Key Facts for AMD:
- Market Cap: $126.6 billion
- 52-week Trading Range: $54.57 – $125.67
- PE Ratio: 95.73
- Sector: Semiconductors, chip design
AMD is one of the world’s largest semiconductor companies and is the second chipmaker on this list of top Metaverse stocks.
Like NVIDIA and Intel, AMD’s chips will power the hardware and software that will power the Metaverse.
A common theme on this list of the best Metaverse stocks is gaming, and AMD chips power the next-generation gaming consoles from both Sony and Microsoft.
AMD builds both CPUs and GPUs that the biggest tech companies in the world use.
This includes providing 4000 EPYC processors to Meta Platforms’ AI RSC Supercomputer that is building the Metaverse. NVIDIA also has provided 16,000 GPUs for this supercomputer.
Unity Software Inc (NYSE:U)
Key Facts for Unity:
- Market Cap: $15.98 billion
- 52-week Trading Range: $21.22 – $109.99
- PE Ratio: N/A
- Sector: Gaming software
Unity Software is one of the world’s largest video game software development companies.
Its Unity engine is used in more than half of all games made for mobile and console. It is the most significant rival to the Unreal engine made by Epic Games.
Unity believes over the long term that developers and content creators will use its Unity engine to build environments and interactions in the Metaverse.
With gaming driving such a large part of the Metaverse, Unity stands to gain as the world’s leading software provider for game developers.
Shopify (NYSE:SHOP)
Key Facts for Shopfiy:
- Market Cap: $55.7 billion
- 52-week Trading Range: $23.63 – $78.00
- PE Ratio: 335.46
- Sector: eCommerce
Shopify is a Canadian eCommerce platform that provides products and services for online retailers.
Shopify also trades on the Toronto Stock Exchange under the ticker symbol (TSX: SHOP).
Shopify is banking on the Metaverse to create an immersive eCommerce experience for its clients through the use of augmented and virtual reality.
Shopfiy has already introduced an NFT marketplace and ways for content creators to sell NFTs directly through their online store on Shopify’s platform.
How To Invest in Metaverse Stocks in Canada
For Canadian investors who are looking to invest in the Metaverse, there are plenty of brokerages where you can buy these stocks. Here are some of the best:
Questrade
Questrade is a Canadian discount brokerage that offers flexible pricing on trades. For as little as $0.01 per share, you can invest in some of the best Metaverse stocks, or you can invest in Metaverse ETFs for no charge on buy orders.
Questrade
Trade stocks, ETFs, options, FX, bonds, CFDs, mutual funds, etc.
Get $50 trade credit with $1,000 funding
Low and competitive trading fees
No quarterly inactivity fees
Access to advanced tools and trading data
Top platform for advanced traders
Transfer fees waived
Wealthsimple Trade
Wealthsimple Trade is a Canadian discount brokerage that offers no-commission trading on stocks and ETFs. It has a mobile and web-based platform that is highly intuitive and popular amongst younger investors.
Wealthsimple Trade
Trade stocks and ETFs for free
Great trading platform for beginners
$25 cash bonus when you deposit $200+
Transfer fees waived up to $150
Pros and Cons of Metaverse Stocks
Investing in the Metaverse allows you to get exposure to what many analysts believe will be a market worth at least $1 trillion in the future.
Buying Metaverse stocks means you are investing in some of the largest and most profitable tech companies in the world.
The Metaverse is still in its early days, and once it is implemented, Metaverse stocks could soar.
One downside is that if the Metaverse adoption does not take off as they anticipate, the companies could struggle, and valuations could drop.
It’s always better to diversify rather than invest all of your money into one sector like the Metaverse.
Are Metaverse Stocks a Good Investment?
The smart money says probably yes. This list of the top Metaverse stocks includes some of the world’s largest, most successful companies.
These companies are on the cutting edge of technology and will likely be good investments regardless of the Metaverse.
Investing in the Metaverse is investing in a potentially world-changing industry. If it is as successful as most people believe, these companies have the potential for massive growth.
