We recently compiled a list of the 10 best Metaverse stocks to buy by hedge funds. In this article, we'll take a look at how Roblox Corporation (NYSE:RBLX) stands compared to other best Metaverse stocks.
According to McKinsey & Company, the Metaverse is an emerging 3D-enabled technology that uses virtual reality, augmented reality, and other advanced Internet and semiconductor technologies to enable people to have lifelike experiences online. It's a digital space.
Fundamental features of the Metaverse include immersion, real-time interactivity, and user agency. Meanwhile, the full vision of the Metaverse includes platforms and devices that work seamlessly with each other, the potential for thousands of people to interact simultaneously, and use cases that go far beyond gaming. This phenomenon gained attention in 2021, with internet searches for the term increasing by 7,200%, and it appears to be here to stay. With the introduction of lockdowns and work-from-home policies, interest in shared virtual environments has skyrocketed. The opportunity remains enormous, with the Metaverse potentially creating up to $5 trillion in value by 2030.
When technology guru Mark Zuckerberg renamed Facebook to Meta in 2021, he was clearly pushing the Metaverse narrative in the world. Visions of a digital future for work and recreation briefly made headlines, but other emerging technologies such as artificial intelligence have since dominated the headlines.
Questions have also been raised about whether Zuckerberg should have turned his successful social media company into a VR venture. In September 2023, the BBC reported that his company's virtual reality and augmented reality arm, Reality Labs, had lost $21 billion year-on-year. The company then introduced social virtual reality space Horizon Worlds. While some users complain that there aren't enough people to enjoy it, the platform's monthly user numbers are nowhere near the number of people who use social media like Facebook and Instagram every day.
Although the company's VR headsets and Horizon Worlds have yet to break into the mainstream three years after its founding, experts argue that Metaverse is still as relevant as ever. are. On October 2, CNBC reported that Zuckerberg's metaverse is finally showing signs of life, as his company may have found a foothold in VR and AR through another medium: smart glasses. . After the company found early success in the smart glasses market through its partnership with Ray-Ban, the CEO unveiled Orion, the first “fully functional” AR glasses prototype, in September.
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“The right way to look at Orion is as a time machine. These glasses exist, and they give us a glimpse into a wonderful and very exciting future.”
While there may be a lack of connection between the Metaverse, which became the next big thing two years ago, and the general AI-dominated technology landscape, reports of its death are “overhyped”. ” and some argue that it is quite long. A term concept that materializes as a digital future for the masses.
To create our list of the 10 best Metaverse stocks to buy according to hedge funds, we first created an expanded list of relevant companies using stock screeners, ETFs, and online rankings. We then shortlisted the top 10 stocks with the highest number of hedge fund holders from the list. Top 10 Best Metaverse Stocks to Buy by Hedge Funds, ordered by ascending hedge fund holders as of Q2 2024.
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Number of hedge fund holders: 54 people
Roblox Corporation (NYSE:RBLX) is reimagining the way people come together by providing a platform where everyone can create, learn, connect, shop and express themselves in immersive 3D experiences. Roblox was founded in 2004.
Roblox serves as one of the top online entertainment platforms for viewers under the age of 18, based on average monthly visitors and time spent. Its popularity is purely driven by the user and developer community. Roblox's growth trajectory is strong, as evidenced by 88.9 million daily active users, 2.9 million developers, 20.7 billion total hours of engagement, and 6 million active experiences as of the most recent quarter. As stated at RDC 2024, the vision is even brighter as the CEO expects the company to become an everyday utility for shopping, communication, entertainment, learning and play.
Roblox Corporation (NYSE:RBLX) demonstrated the strength of its platform with encouraging third-quarter financial results. The company posted revenue of $919 million, up 29% year over year. Bookings increased 34% over the year. At the same time, average daily active users (DAUs) increased by 27% year-over-year and engaged hours increased by 29% year-over-year.
Therefore, Roblox is a leading immersive platform for connection and communication. With a solid foundation, active engagement, and a growing community of both creators and users, the company remains committed to becoming the world's largest social platform for play. As of Q2 2024, the stock is held by 54 hedge funds.
Overall, RBLX ranks #8 on hedge funds' list of best Metaverse stocks to buy. While we appreciate RBLX's potential as an investment, we believe AI stocks have a better chance of delivering higher returns in a shorter time frame. If you're looking for AI stocks with more promise than RBLX but trading at less than 5x earnings, check out our report on the cheapest AI stocks.
Read next: BlackRock's 8 Best Widemot Stocks to Buy Now and 30 Most Important AI Stocks.
Disclosure: None. This article was originally published on Insider Monkey.
