The Metaverse, a virtual world that allows users perform actions as akin to what they do in the physical world: work, shop, buy and sell goods and even socializing with friends, may have prior to its present popularity existed in form of video games, while having the prospect of it aligning with new technologies in a way we haven’t yet seen to bring people into virtual worlds.
The Metaverse mention has been elevated in tech discourse in recent terms, and this is most evident in what is known as ‘the investment in the internet 3D iteration’ by reputable tech firms like Apple, Amazon, Samsung and especially Meta Inc (who has been very intentional and direct with its plan for the metaverse).
The CEO of Facebook Inc, Mark Zuckerberg had shocked the world then when in a brazen move, he announced the change of the already known brand from Facebook to Meta Inc., a decision which elicited shock, and in cases despair, with litany of reactions, from mockery and scepticism to confusion and praise accompanying the announcement.
The American media magnate, and philanthropist was not deterred in the mockery and pessimistic rhetoric butt continued to push and advertise the concept to the average populace on his social platforms, as it is understandable that the metaverse term appear largely vague to many people.
The adventurous Zuckerberg had in a founder’s letter announcing the name change written: “The metaverse is the next frontier in connecting people, just like social networking was when we got started.”
The optimism of the New York-born internet entrepreneur on the Metaverse project largely played a role in the adoption and popularity of the term and it can be seen that many renowned tech giants began to latch on the trend.
Meta says it sees the metaverse “a set of virtual spaces where you can create and explore with other people who aren’t in the same physical space as you.”
Zuckerberg and Meta Inc aren’t the only one interested in the 3D iteration of the internet, globally acclaimed companies like Apple, Microsoft, Google, Nvidia, Roblox are actively investing in the metaverse.
There are lot of reputable firms working on building the metaverse, and there is a possibility that the different companies could in the future in synergy work together to create various metaverse that allows one’s avatar move from one company’s platform to another.
Microsoft had January this year announced that it would be acquiring video-game developer and publisher, Activision Blizzard, a subtle move to securing a major spot in the metaverse.
It wrote in the official announcement:
“This acquisition will accelerate the growth in Microsoft’s gaming business across mobile, PC, console and cloud and will provide building blocks for the metaverse”.
The $70 billion Activision Blizzard acquisition which was adjudged the biggest ever Microsoft deal was mooted to help develop Microsoft-backed games and software within the metaverse in the coming years.
Gearing up for a virtual and augmented future, Google on its part invested a whopping $39.5 million in a private equity fund for all metaverse projects, having also joined the fray January this year, with the company’s CEO, Sundar Pichai, repeatedly discussing Google’s interest in Augmented Reality (AR), forecasting the infusion of services like Maps and YouTube into the virtual landscape.
Nvidia, a world leading GPU developer, not oblivious of the impact it would have in the virtual world is not leaving things to chance in the advancement of the metaverse principle. Its vital role in the tech world (responsible for putting GPUs in consoles, PCs, laptops, and more) can be argued as the major reason the company is investing in the metaverse alongside its competitors.
The Metaverse real estate is a worthy mention: the collection of different 3D worlds with limited quantities of plots and different functionalities has a virtual real-estate.
With the prospects of the metaverse and the opportunities it presents, a lot of us would want to know to invest in the metaverse, we have put together few tips we hope would be a first step.
Virtual Reality Games, a new generation of computer games with virtual reality (VR) technology that gives players a truly immersive, first-person perspective of game action can be said to be a major thrill of the new virtual world. And it is on the aegis of this that Gaming companies are propped to be the largest beneficiary of the metaverse transition and according to Scott Kessler, Third Bridge global sector lead of technology, media and telecommunications, the gaming companies are already on their way to fulfilling opportunities related to the concept and as such would be the first heritor of the VR world.
Decentraland for example was among the first companies to use its 3D VR platform to develop its multiplayer gameplay capabilities. It uses the Ethereum blockchain to further develop its gaming qualities.
The Sandbox game with 20,000 plus NFTs that allows users buy and incorporate into their VR worlds, is another metaverse native video game that gives game lovers the opportunity to play, create own and govern a virtual space.
Epic Games, a renowned gaming company famed for building Fortnite, a Virtual Reality Game had recently announced that it would invest $1 billion to build its own metaverse centred on gaming.
Software maker, Microsoft, not oblivious of the vitality of gaming to the metaverse concept forked out $68 to acquire Activision Blizzard, a VR gaming company, with its CEO, Satya Nadella positing in a news release that, “Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms.”
The gaming world has seen a lot of acquisitions and partnerships, some of them the purchase of ‘Farmville’ creator, Zynga by Take-Two Interactive and Sony’s intention to buy ‘Halo’ video game developer, Bungie.
A more than 10-year old published survey from Visa’s PlaySpan and research firm VGMarket found that even back then, nearly one out of every three gamers had used actual money on virtual goods.
Another gaming platform, Roblox has already created a virtual world that offers users the leverage to play varieties of games and interact online and according to Kessler, the gaming company seems to be closest to capturing what people think of when they envision the metaverse.
So when you think of investing in the metaverse, think of gaming.
Just as you invest in a physical real-estate, you can also part with cash to invest in a virtual property, with similar modus-operandi to the former. A virtual land can be bought, monetized and resold, in a 3D augmented reality of the internet iteration. It should be noted that in a virtual real-estate, the large chunks of the real cash are taken in by the platform owners.
The Metaverse property allows Freelance and E-commerce platforms charge fees from the dealings of the buyers and sellers of virtual properties, with websites and social media platforms seeking to engage their users as long as possible when selling advertising space.
The metaverse real-estate also offers artists, programmers, and everyone around the universe the opportunity to have high streams of incomes and build their livelihoods on this booming new world.
You can then decide to buy a plot of land in the metaverse, allow it appreciate, a build a VR concert ground on it or alternatively resell the VR land at an improved price.
You can invest in the virtual world by deciding to latch on to the infrastructural segment of the 3D world, as according to Angelo Zino, an industry analyst at CFRA Research, the metaverse is more of a long-term vision, with a large chunk of the ideas companies appearing to blindly invest into it won’t reap the returns for years but the best bet for someone or organization planning to pump money into the metaverse project is investing in infrastructure that needs to be in place for these new innovations to actually be developed.
He believes Nvidia and Advanced Micro Devices, two semiconductor companies are the best positioned for the metaverse infrastructure, as they’ll actually likely see revenue increases as companies like Meta spend money on infrastructure.
The GPU’s these companies produce that simultaneously process a ton of data, while being used for machine learning and gaming, among other applications, making them already major players in gaming and 3D simulation.
Another semiconductor company, Qualcomm is also among the probable metaverse beneficiaries, with it producing AR and VR hardware devices as it manufacture chips that power AR and VR headsets.
So while looking to invest in the metaverse, you can focus on the hardware the Virtual Reality world needs.
Tech and Social Media Firms
The iteration of the virtual space in 3D will require social communication and a community leverage and it is with this knowledge that tech firms, social media giant willing to invest in the metaverse concept can take a cue from leading brands like Meta, Apple and others.
A senior equity analyst at financial services firm, Morningstar, Ali Mogharabi was emphatic in his description of Meta Inc. early investment in the Metaverse concept when he said:
Meta (formerly Facebook) can benefit from being a first mover in the metaverse space. The company has the access to capital to invest aggressively in the metaverse, thanks to the revenue it brings in from Facebook and Instagram. It also has the users”.
“In order for the metaverse to be successful, you need those users out there to interact and engage with one another,” Mogharabi says.
Mark Zuckerberg in his founder’s letter announcing the name change from Facebook Inc. to Meta Inc had surmised that his company’s role in helping to build the metaverse will be to accelerate the development of “fundamental technologies, social platforms and creative tools to bring the metaverse to life, and to weave these technologies through our social media apps.”
Mogharabi asserts that with Meta Inc metaverse expansion, the companies is opening up itself to more opportunities, as well as keep users on its platforms, as well as for monetization, either by selling items on virtual platforms or marketing and advertising on virtual platforms.
Another tech firm to take a cue from is consumer electronics, software and online services company, Apple and according to Zino, the iPhone maker is another tech giant that is looking to benefit from the shift in interest towards the metaverse.
Apple Inc. with its focus on the Augmented Reality (AR) technology is also preparing to launch a mixed-reality headset and this is a smart move by Apple to effectively latch on the metaverse concept and make the best of it.
Blue Chip Stocks In Metaverse Inclined Companies
Blue-chip stocks is ideally seen as safe investment options as their non-volatility makes them endure economic downturns, while presenting slow but moderate growth potential. They have a global reputation for quality, reliability, and the ability to operate profitably in good and bad times.
For someone seeking to invest in the long-term, you can look out for blue-chip stocks owned by companies with an exciting prospect of growing well in the new metaverse future.
The discovery and promotion of the metaverse championed by A-List companies like Meta, Apple, Google, Microsoft, Nvidia, Samsung who have grown to enviable heights in the tech world and with the continuous prospect to keep growing in the virtual world, implies that there is a great deal of security in their blue-chip stocks.
So for an investor looking to take advantage of the metaverse trend, you can look out for these companies blue-chip stocks, and leverage on them but it should be noted that they may not guarantee instant gratification.
Parts of this article was sourced from money.com