3 Metaverse Stocks to Buy Now: Q2 Edition (2024)

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It may be time to give themetaversea second chance. Many investors are understandably somewhat skeptical of whichmetaversestocks to buy following their uneven debut.

The theme had a ton of excitement and traction back 2021. So much so, in fact, that Mark Zuckerberg renamed his company from Facebook toMetaPlatforms (NASDAQ:META) to reflect what he felt might be the next big growth avenue in the tech landscape. So far that hasn’t played out, or at least not on the timeline thatmetaverseoptimists may have been hoping for.

But the concept of an online meeting space where people can work, collaborate, socialize, and play games together remains compelling. And with technology rapidly advancing, there are better and better things that tech companies can achieve within an augmented or virtual reality setting. As a catalyst for themetaverse, earlier this year, Apple (NASDAQ:AAPL) released its Apple Vision Pro, which could greatly expand the marketplace and adoption of augmented and virtual reality solutions. That makes it a great time to look at these three leadingmetaversestocks to buy now.

Unity Software (U)

Unity Software (NYSE:U) is one of the two primary graphics engines that video game developers use to produce their games.

Unity’s biggest appeal is its interoperability. A developer can build a game in Unity and quickly release it across console, PC, smartphone, and augmented and virtual reality. In fact, reports suggested that Mark Zuckerberg considered acquiring Unity to make it a core part of the Oculus ecosystem.

However, Unity has remained independent and can offer its graphic solutions to the entire gamut of game and app developers. Of note, Unity is one of the key partners in developing apps and experiences for the Apple Vision Pro.

Unity shares have underperformed much of the tech market, as the company is still experimenting with monetization and there are also questions around its advertising-driven revenue streams. However, in the longer-term, Unity has a great graphics engine. If it can solve commercialization issues, Unity should be set for significant upside with themetaversebeing an intriguing piece of its broader story.

Matterport (MTTR)

Matterport (NASDAQ:MTTR) is a property technology company. Its core business model is to have clients take high-quality imagery of their properties. Matterport can use this imagery to create detailed 3-D renderings of a property and allow the owner to host virtual walk-throughs and site visits.

A wedding venue, for example, could offer virtual tours to help potential customers see and experience what their venue would be like without having to go there in person first.

As technology such as the Apple Vision Pro gains adoption, it will be easier and easier for customers to take part in the digital tour and walk-throughs. Clients such as hotels, resorts, and office buildings will increasingly embrace Matterport as folks become more accustomed to digital property tours.

Matterport has gotten off to a slow start as a publicly traded company. The former SPAC has seen shares lose the majority of their value; however, the firm’s revenues continue to grow. Analysts see the company generating about $176 million in sales this year, which would be up 11% from last year. And further, analysts expect the company to reach profitability on an earnings per share basis in 2026.

Matterport has overcome a rocky transition from a hardware and licensing model towards recurring subscription revenue. As investors gain confidence in its business direction, and people continue to adopt and augmented reality solutions, MTTR stock should be set for a comeback.

Tencent Holdings (TCEHY)

Tencent Holdings (OTCMKTS:TCEHY) is a large Chinese technology and media conglomerate. It both operates its own business and maintains investment stakes in a vast array of companies.

Tencent Holdings shares have plunged in recent years due to China’s decline in consumer spending and economic slump. However, Tencent should be ripe for a rebound as it has numerous ways to profit from China’s economic recovery.

As it pertains to themetaverse, Tencent is a leading video gaming company. It has its own media operations, and it also invests in other leading video game developers. Its large holding in Epic Games gives it a particular leg up in themetaversespace.

That’s because Epic runs Fortnite, which is arguably the most successfulmetaverseproperty to date. Fortnite has gained incredible mind share with younger players which has allowed it to attract large international brands who have set up digital stores in the Fortnite universe. Additionally, Fortnite hosts concerts and media events which attract players for unique experiences and allow all sorts of branding, product sales, and other monetization opportunities.

Tencent was ahead of the curve in taking a large ownership position in Epic and other gaming properties. It should be poised to profit from themetaverse, regardless of which particular games, experiences, and brands end up attracting the mostmetaverseusers over time.

On the date of publication, Ian Bezek held a long position in U stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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