Just recently, social media giant Facebook changed its name to Meta as part of its commitment to venture into the Metaverse space. The Metaverse is essentially an extension of the internet that allows users a more immersive experience through virtual reality (VR), augmented reality (AR), and mixed reality (MR).
Pretty soon, people will be able to interact with each other in 3D while being miles apart. Further, fictional objects and characters will come to life with the adoption of the metaverse. As you can imagine, the applications of this will be infinite, especially considering the work from home concept introduced during the COVID-19 pandemic. That being said, let’s look at how best investors can get in on the ground floor of this movement.
Decentralization, as has become common in the crypto space, has highlighted the problem of latency and data lag. This is because of the distance between users and the main servers of a network, which introduces a time lag in the execution of orders within the network. With the metaverse movement, there is a dire need to reduce this data lag for improved efficiency, which is where Fastly comes in.
Fastly is an edge computing company whose main goal is to bring servers closer to their data sources. It runs an infrastructure-as-a-service (IaaS) platform that is capable of moving up to 145 TB of data in a second across almost 30 countries. This way, they solve the problem of data lag and latency.
Since its launch in 2011, the company has been enjoying steady growth in sales revenue. In the last quarter, it recorded a 14% year-to-year growth in revenue. With the amount of data transfer required to be shared in real-time between users to create an interactive experience, edge computing is bound to be a key component of the metaverse. This puts Fastly at the forefront in terms of growth potential caused by the metaverse movement.
At its core, Nvidia is a semiconductor chip manufacturer. It is currently the gold standard in the manufacture of fast processing chips capable of computing complex calculations in a split second. Such chips are utilized in servers and computers that are used to create metaverse solutions. They are also instrumental in edge computing platforms such as those developed by Fastly.
Further, Nvidia is currently negotiating a buyout of ARM Holdings, which is concerned with patents and software that enables chips to be incorporated into computer systems. With this acquisition, Nvidia will be able to install its chips into more systems, creating super-powerful GPUs. Such GPUs will be instrumental in the metaverse revolution.
Roblox is a popular gaming company that boasts a cool 43,200,000 daily users on its platform. It offers several games, as well as various entertainment content for its users. They also have a virtual currency which they sell to their users. The users can then use this currency to pay for games, content, and virtual items such as designer clothing for their in-game characters.
With its gaming platform, Roblox is fully committed to the move into the metaverse. In addition to gaming, it hosts virtual concerts and events on the platform, such as the recently concluded Gucci launch in May.
Performance-wise, Roblox has been recording promising numbers in sales revenue. In the first quarter of 2021, the firm posted a 140% growth in sales revenue as compared to the same period in 2020. Last quarter, this growth was at 126%. With such results, it’s easy to see why Roblox stocks are a worthy addition to your portfolio.
On 28th October 2021, Mark Zuckerberg changed social media giant Facebook’s name to Meta. This was following his firm’s foray into the metaverse space, which was started in 2014 through the acquisition of Oculus. Oculus is a VR company whose headsets hold the gold standard in the market.
In mid-August, Facebook launched Horizon Workrooms, an app that merges video chat with Oculus’s VR functionality. This app allows users to attend virtual meetings through avatars while accessing their computer screens, keyboards, and virtual whiteboards. With the recent work-from-home switch brought on by the coronavirus pandemic, bringing the metaverse into the workplace is bound to be a big plus for Meta’s already flourishing revenue generation.
With its various holdings in the social media space and computer hardware, Meta’s stock provides one of the safest investment options for investors worldwide. With its recently renewed commitment to the metaverse movement, anyone looking to get in on this revolution would be wise to bet on Meta stock.
Autodesk is known for its popular AutoCAD software. This software is utilized by engineers, architects, and designers worldwide to bring their projects to life, whether in 2D or 3D. It is the most commonly used software in construction and architectural space. In fact, the firm realized a sales revenue North of $1 billion from this software alone in the last quarter.
Nowadays, developers are using AutoCAD to develop virtual worlds for gaming. The firm also provides a range of products for rendering 3D animations and creating content within the VR and AR space. With its history in the 3D space, Autodesk is becoming a top choice among developers interested in creating within the metaverse. Ergo, the firm is naturally at the forefront of most investors’ investment options with regard to the metaverse.
The metaverse promises users an interactive experience over the internet, which will revolutionize many aspects of life as we know it. There are several companies that have shown their commitment to the metaverse space, and as the popularity of this movement grows, so will their stock prices. Such companies include Fastly, the edge computing firm, Nvidia, the microchip manufacturer, Meta, the social media and communication company, Roblox, the gaming company, and Autodesk, which is concerned with the design and the built environment.