Over the past couple of years, stocks associated with the metaverse have seen it all. There was the initial hype in 2021, where anything with ties to it saw huge rallies. In addition, Mark Zuckerberg even changed his company’s name from Facebook to Meta Platforms (META). However, this initial enthusiasm led to an even larger decline in share prices from peak to trough. Nevertheless, the potential is still there, and some investors believe the metaverse will become the next big thing.
Indeed, BlackRock (BLK) noted, “At this juncture, it is much like the internet of the early 1990s or the smartphone of the early 2000s: We expect it is going to be big, and very likely change people’s daily lives.” Without being specific, the firm pointed to smartphone companies and tech stocks that can provide the big internet and software as the most immediate opportunities. In addition, they like the companies that provide the components that make creating the metaverse even possible.
Some possible stocks besides Meta Platforms include NVIDIA (NVDA), Roblox (RBLX), Apple (AAPL), and Microsoft (MSFT). Investors looking to play the metaverse trade can also consider one of the following ETFs:
Roundhill Ball Metaverse ETF (METV)
ProShares Metaverse ETF (VERS)
Subversive Metaverse ETF (PUNK)
Nevertheless, the industry as a whole remains volatile, as indicated by the graphic above. Each ETF mentioned has seen its value decline significantly throughout 2022, although it has been rallying on a year-to-date basis.
