3 Metaverse Stocks With the Potential to Make You an Overnight Millionaire

Stocks to buy

The metaverse may have gotten off to a rough start, but don’t write it off just yet. Instead, you may want to consider buying some of the top metaverse stocks today.

Sure, Meta Platforms (NASDAQ:META) is still losing money on it, but it’s not giving up on it either. In fact, META is now associating its metaverse plans with artificial intelligence (AI).

“Fueled by mainstream tech giants’ attempts to make metaverse popular in a Web2 fashion and technological advancements—such as high-speed internet and smartphones becoming tiny supercomputers—metaverse is expected to become a $5 trillion business by 2030,” as noted by CoinTelegraph.com.

As we wait to see what’s next on the horizon, let’s explore some top metaverse stocks you may want to buy and hold.

Roblox (RBLX)

Source: Miguel Lagoa / Shutterstock.com

Metaverse stocks like Roblox (NYSE:RBLX) have been beaten up recently, but it’s still a solid buy opportunity.

First, the company issued better-than-expected quarterly results, with an even better outlook for the fiscal year. True, it lost 52 cents in the fourth quarter, as bookings climbed 25.3% higher to $1.13 billion year-over-year (YOY). Analysts were looking for a loss of 55 cents on bookings of $1.08 billion.

Second, RBLX expects its Q1 bookings to come in between $910 million and $940 million. That’s above expectations for $902.6 million. For the full year, it expects bookings to come in between $4.14 billion and $4.28 billion. That’s above expectations for $4.06 billion. 

“Roblox said it expects its top line to grow by at least 20% each year through 2027. Roblox also said that it is targeting between 100 and 300 basis points of margin expansion each year as the company moderates spending. The company cited its ability to manage growth in fixed costs, including headcount,” as noted by Seeking Alpha.

Nvidia (NVDA)

Source: Piotr Swat / Shutterstock.com

Nvidia (NASDAQ:NVDA) could see even more upside with the AI and metaverse boom. After climbing to a high of $967.66, it’s now back to $830.41. This weakness could be a long-term opportunity. From that last traded price, I’d like to see NVDA run well above $1,000 a share this year. 

TD Cowen analyst Matthew Ramsay says NVDA is his “top pick” with a price target of $1,100.

“Checks continue to indicate strong demand” for Nvidia’s market-dominating artificial intelligence chips, even as the company increases its ability to supply that demand through (calendar years) 2024 and into 2025,” he added

“In the near term, the analyst says fiscal Q1 2025 should see Nvidia produce total revenue of $24.8 billion, of which a staggering $21.3 billion (86%) will come from the datacenter (which at this point means basically the AI chip) division. Assuming this is the right revenue number, it will equal 245% year-over-year growth, and 12% sequential, quarter-over-quarter growth,” as noted by TipRanks.com.

RoundHill Ball Metaverse ETF (METV)

Source: shutterstock.com/eamesBot

We can also diversify at a low cost with the Roundhill Ball Metaverse ETF (NYSEARCA:METV).

With an expense ratio of 0.59%, the ETF is the world’s largest metaverse fund and should benefit from two key areas of growth. That includes “The Metaverse’s economic reach is anticipated to hit an impressive $10.7 trillion by 2033, signaling an era of unprecedented expansion,” as noted by RoundHillInvestments.com. “VR/AR headset shipments are forecasted to reach 31.1 million by 2026, indicating steady industry growth and market traction.” 

Since bottoming out at the start of 2023, the METV ETF ran from a low of about $7 to a high of $12.48. It has since pulled back to $11.87, which signals an opportunity. From its current price, I’d like to see it run back to $17 near term. Even better, the METV ETF is starting to pivot higher from overextensions on RSI, MACD, and Williams’ %R.

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

Articles You May Like

3 Cloud Computing Stocks to Buy Now: May 2024
Stock Market Crash Warning: Don’t Get Caught Holding These 3 Transportation Stocks
3 Stocks You’ll Wish You Owned Sooner
AMD Stock Target: Keep Your Eyes on the $200 Prize
7 Tech Stocks That Could Be Millionaire-Makers: May Edition