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 Autodesk, Inc. (NASDAQ:ADSK) stands compared to other top Metaverse stocks to buy by hedge funds.
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. Although 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.
With that said, let's move on to the 10 best Metaverse stocks to buy, according to hedge funds.
Our methodology:
To create our list of the 10 best Metaverse stocks to buy according to hedge funds, we first created an expanded list of related companies using stock screeners, ETFs, and online rankings. We then shortlisted the top 10 stocks from the list with the most hedge fund holders. Top 10 Best Metaverse Stocks to Buy by Hedge Funds, ordered by ascending hedge fund holders as of Q2 2024.
Here at Insider Monkey we're obsessed with hedge fund stocks. The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).
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Number of hedge fund holders: 55 people
Autodesk, Inc. (NASDAQ:ADSK) provides 3D design, engineering and entertainment technology solutions worldwide. Designers, engineers, builders, and creators around the world trust Autodesk to help them design and build everything they want. Autodesk's Design and Make platform provides the technology to create the world around your customers. The company's products are focused on four major product families, including Architecture, Engineering and Construction, AutoCAD and AutoCAD LT, Manufacturing, and Media and Entertainment.
Autodesk serves as a global leader in design and manufacturing technology, with expertise across architecture, engineering, design, construction, manufacturing and entertainment. Autodesk's Revit is a building information modeling software designed for engineers, architects, and contractors to create virtual models of structures. Revit models can be transformed into immersive experiences. Autodesk is powering the creation of the Metaverse through a number of different products designed specifically for 3D animation and building construction in VR and AR.
Previously, the company entered into a strategic partnership with Epic Games to accelerate immersive, real-time 3D experiences across industries, initially focused on architecture, engineering, and construction. As members of the Metaverse Standards Forum, both companies believe in the value of open source content creation.
Autodesk continues to maintain strong momentum both in absolute terms and relative to its competitors. On August 29, Autodesk, Inc. (NASDAQ:ADSK) reported financial results for the second quarter of 2025. Total revenue increased 12% year over year. Net revenue for all product families increased during the year. As Autodesk President and CEO Andrew Anagnost highlighted, the company is capitalizing on favorable long-term growth trends, including the global recovery and infrastructure growth.
Autodesk, Inc. (NASDAQ:ADSK) is an attractive Metaverse stock to invest in, given the company's strong overall business momentum and leading design software for the Metaverse. As of Q2, the stock was held by 55 hedge funds.
Overall, ADSK ranks #7 on hedge funds' list of other best Metaverse stocks to buy. While we appreciate ADSK's potential as an investment, we believe some AI stocks have a better chance of delivering higher returns over shorter time periods. If you're looking for AI stocks that are more promising than ADSK but trade 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.
