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Even if you do not play games for some reason, you must have heard about Minecraft. As a video game, Minecraft is the best seller of all time. It sold 238 million copies worldwide and had around 140 million active users monthly in 2021.
Because of the game’s popularity, investors mistakenly assume that Minecraft is available as stock and that they could invest in it like any other stock. At this point, that is not possible because there is no such stock in any stock exchange. The closest thing you can find right now are Metaverse stocks.
One example of a Metaverse stock is Microsoft, which is also the company that owns the Minecraft game. If you buy Microsoft, you get the best of both worlds of Minecraft and Metaverse. This article will learn which option is better, Microsoft stock or Metaverse stocks.
What are Minecraft stocks?
There is no Minecraft stock right now. You can find a Minecraft video game. If you want to buy Minecraft as a gamer, you can purchase Microsoft’s Xbox consoles. As an investor, the closest thing you can get is ownership of Microsoft stock. This is because Microsoft acquired Mojang Studios, the company behind the creation of Minecraft, for $2.5 billion in 2014.
Is buying shares of Microsoft similar to investing in Minecraft? Not really. The gaming segment generated only 26 percent of the total revenue of Microsoft in 2020, and Minecraft is only a part of this segment. The good thing is that Microsoft has plans to develop the game further into the future. At present, the company is expanding the game’s availability on several platforms.
The Minecraft world
What are Metaverse stocks?
While some companies are looking to develop their versions of Metaverse games, others build infrastructure to support the growing Meta economy. They are existing companies working on projects that will bring the Metaverse to individual users and enterprises. Many of these companies are established firms operating in the fintech, social media, and gaming sectors.
Since Metaverse is considered the next big thing after the internet, companies are hurrying to get their piece of the pie. They expect the Metaverse to disrupt how companies conduct business, that is, by offering an engaging way of working from home. If such a concept comes to pass, you can work comfortably at home without leaving your doorstep or spending money on a commission.
Microsoft stock vs. Metaverse stocks
Because Minecraft stocks are non-existent, we can use Microsoft stock in their stead. Therefore, we will discuss the difference between Microsoft stock and Metaverse stocks. This section will discuss Microsoft as stock and then examine three Metaverse stocks in the next section.
Microsoft (MSFT)
Price: $332.47
EPS: 8.94
Market capitalization: $2.496 trillion
MSFT stock price chart 2006-2022
The history of Microsoft as a publicly-traded company runs back to March 1986. If you look at the yearly chart above, you can see that the stock has made an impressive bull run, especially in the past years.
The most significant gains came with 2021, seeing the most profit (i.e., 43 percent). We can only hope for the best as Microsoft continually innovates and develops new products for business enterprises, not to mention its projects for Minecraft.
MSFT stock summary
Top three Metaverse stocks you can buy in 2022
No. 1. NVIDIA (NVDA)
Price: $300.29
EPS: 3.24
Market capitalization: $748.846 billion
NVDA stock price chart 2006-2022
NVIDIA plays a key role in Metaverse development by providing GPU, an infrastructure where Metaverse applications run. As the Metaverse gains widespread adoption, NVIDIA will likely significantly benefit in sales and profit. You stand to make returns in both share price growth and dividend payment as an investor.
NVIDIA stock summary
NVIDIA is one of the most exciting Metaverse stocks to buy in 2022. The stock managed to grow by 125 percent in 2021. This is the biggest gain that the stock has made over 22 years as a public company. Looking at the chart above, you can see that the share price made a parabolic movement on at least two occasions.
No. 2. Roblox (RBLX)
Price: $100.27
EPS: -1.00
Market capitalization: $58.083 billion
RBLX stock price chart 2021-2022
Roblox is like the social Metaverse we see today. Essentially, Roblox is a video game with about 43.2 million active users every day and has native crypto running in its platform known as Robux. The platform also hosts myriads of unique virtual experiences, such as online digital concerts.
Roblox stock summary
Roblox has less than one year of existence as a public company. It made its NASDAQ debut on 10 March 2021. Although it is not obvious from the daily chart below, the share price seems to be moving up in a gradual, bullish tone. The market structure is trending to the upside as price oscillates up and down from left to right. At this point, it seems to be correcting some of the moves made in quarter four of 2021. This stock could be a good buy right now if you want to get it at a discount.
No. 3. Meta (FB)
Price: $338.82
EPS: 13.97
Market capitalization: $942.377 billion
FB stock price chart 2012-2022
Meta rolled out its new name from the brand most online users know of (i.e., Facebook) in October 2021. This name change indicates intent to shift its focus toward Metaverse. Its CEO Mark Zuckerberg stated that Metaverse is an upgraded version of the internet where users are not mere spectators but actual participants. The success of Meta in its Metaverse embarkation largely rests on its VR subsidiaries, Horizon and Oculus.
Meta stock summary
The stock price looks great on the chart above. Overall, it has been trending upward over the past decade. The current price is near the recent peak, and buying the stock might seem expensive. Keep in mind that Meta is a key player in the Metaverse movement. There is a possibility for the stock to keep going upward in the near term if it makes successful Metaverse embarkation in 2022.
Final thoughts
The Metaverse sector is very young up to this point, and companies are doing many things in the background to expand its use. Some people say the Metaverse revolution is similar to the internet bubble in the 1990s. Seeing this potential, are you willing to buy into the speculation?
Since investing involves risk and new types of investments, you can limit your exposure by dabbling into Metaverse stocks. This could be the best time to own some of these stocks.
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