We recently compiled a list of the 10 Best Metaverse Stocks to Buy According to Hedge Funds. In this article, we are going to look at where Unity Software Inc. (NYSE:U) stands against the other top metaverse stocks.
According to McKinsey & Company, the metaverse is the emerging 3D-enabled digital space that uses virtual reality, augmented reality and other advanced internet and semiconductor technology to enable people to have lifelike experiences online.
The basic features of the metaverse include a sense of immersion, real-time interactivity, and user freedom. While the full vision of the metaverse includes platforms and devices that work together seamlessly, the ability for thousands of people to communicate simultaneously, and use cases that go far beyond just gaming. While the phenomenon gained attention in 2021, with internet searches for the term increasing by 7,200%, it appears that this phenomenon is here to stay. With lockdowns and work-from-home policies in place, interest in shared virtual environments is increasing. The opportunities remain enormous as Metaverse has the potential to generate up to $5 trillion in value by 2030.
When tech guru Mark Zuckerberg changed Facebook’s name to Meta in 2021, he clearly spread the metaverse story. While the vision of a digital future of work and play became a buzz for a while, other emerging technologies such as artificial intelligence later decided to dominate the headlines.
Questions have also been raised about whether Zuckerberg should have turned a successful social media company into a VR venture. In September 2023, the BBC reported that its company’s virtual and augmented reality arm, Reality Labs, had lost $21 billion since the previous year. The company later introduced its social virtual reality space Horizon Worlds. While some users have complained about not having enough people to make it fun, the platform’s monthly users simply can’t match the number of people who use social media like Facebook and Instagram every day.
Although the company’s virtual reality headset and Horizon Worlds have yet to go mainstream three years after the company’s founding, experts claim that the metaverse is still as relevant as ever. On October 2, CNBC reported that Zuckerberg’s metaverse is finally showing signs of life, as his company may have found its footing in VR and AR through a different medium: smart glasses. After finding early success in the smart glasses market through a partnership with Ray-Ban, the CEO unveiled the first “fully functioning” prototype of AR glasses, Orion, in September.
“The right way to look at Orion is as a time machine. These glasses exist, they are amazing and they provide a glimpse of a future that I think is going to be quite exciting.”
While there may be a lack of connection between the metaverse, which was “the next big thing” two years ago, and the prevailing AI-dominated technology landscape, some argue that reports of the death of the metaverse are “exaggerated” and that it is quite a long period. term concept to materialize as a digital future for the masses.
To compile a list of the 10 best metaverse stocks to buy according to hedge funds, we first used stock screeners, ETFs, and online rankings to create a comprehensive list of the relevant companies. Ahead, we’ve shortlisted the top 10 stocks from our list with the highest number of hedge fund holders. The 10 best metaverse stocks to buy according to hedge funds are ranked in ascending order of their hedge fund holders as of Q2 2024.
At Insider Monkey, we’re obsessed with the stocks hedge funds are piling into. The reason is simple: our research shows that we can outperform the market by imitating the best stock picks from the best hedge funds. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, beating the benchmark by 150 percentage points (see more details here).
Number of hedge fund holders: 34
Unity Software Inc. (NYSE:U) serves as the world’s leading platform for creating and operating interactive, real-time 3D (RT3D) content. The company supports makers across all industries and worldwide. The Unity platform offers a range of software solutions for creating, running and generating interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles and augmented and virtual reality devices.
Unity continues to maintain a unique position in a vibrant company. With the increasing creation of 3D content in interactive entertainment, the company serves as the right platform provider to fundamentally change the way the next generation of content is created. Because Unity has the ability to change the way people think about creating interactive content, it can encourage them to create more content by allowing them to do it more efficiently and effectively. Therefore, management remains optimistic about Unity’s long-term value.
In October, the company launched Unity 6, the most stable and best-performing version of Unity. Unity 6 was put together to enable the creation of better games, built faster and more efficiently than before. Unity’s third quarter results exceeded expectations for both revenue and adjusted EBITDA. Major new customers in the quarter included KLM, the Dutch airline building a VR cockpit training application, and Deutsche Bahn, which built a range of systems and training simulations in Unity.
With the uniqueness of Unity’s platform and the bright future it looks forward to, the company is a promising metaverse stock to buy. As of the second quarter, Unity Software Inc. (NYSE:U) owned by 34 hedge funds.
Overall, U is in 10th place on our list of the best metaverse stocks to buy according to hedge funds. While we recognize U’s potential as an investment, our belief lies in the belief that AI stocks hold greater promise for delivering higher returns in a shorter time frame. If you’re looking for an AI stock that’s more promising than U, but trades at less than five times earnings, check out our report on the cheapest AI stocks.
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Disclosure: None. This article was originally published on Insider monkey.
