With the emergence of the Internet, many other new advancements have emerged. The rise of the Metaverse is one example. To support its growth and evolution, such a world makes use of virtual reality and augmented reality technology.
Slowly but steadily, the metaverse has evolved into its own business, providing investors with a rich investment opportunity in the market. Grayscale Investments predicts that the Metaverse presents a $1 trillion revenue opportunity as of December 2021, according to a US Global Investors study published at the time.
We examined the technology business and identified 6 companies that are investing in the metaverse area. These companies are projected to gain from the metaverse industry’s tremendous growth in the foreseeable future. These equities have long-term growth catalysts and positive Wall Street ratings.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 258
Microsoft Corporation is a systems software company that is also one of the market’s Big Five. As part of its metaverse strategy, the business focuses on Microsoft Teams and Microsoft Mesh. The former is the company’s online collaboration platform, where its virtual workplace exists, while the latter is its corporate metaverse, which aims to build a seamless connection between the physical and digital worlds.
As of October 18, Brad Zelnick of Deutsche Bank has a Buy recommendation on Microsoft Corporation. The analyst also set a price target of $315 on the stock.
Microsoft Corporation’s EPS in the fiscal fourth quarter of 2022 was $2.23, up from $2.22 in the previous quarter. Revenue of $51.87 billion was also higher than the prior quarter’s revenue of
$49.36 billion.
According to our second-quarter hedge fund data, 258 hedge funds were long Microsoft Corporation in the second quarter, with a total holding worth of $56 billion.
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 252
Amazon.com, Inc. is a North American and international internet and direct marketing retail corporation. With its Amazon AR view, which allows customers to utilize augmented reality to plan and decorate their homes, the corporation began mixing metaverse technology into its digital marketplace.
John Blackledge of Cowen reissued an Outperform rating on Amazon.com, Inc. shares on October 17. The analyst also set a price target of $195 on the stock.
Amazon.com, Inc. exceeded sales expectations in the second quarter of 2022, taking in
$121.23 billion, exceeding predictions by $2.09 billion. This October, the company’s cloud computing division also revealed $5 billion in profitable investment plans to expand Thailand’s cloud infrastructure over the next 15 years.
In the second quarter, 252 hedge funds were long Amazon.com, Inc., with a total position value of $30.1 billion. In the previous quarter, 271 hedge funds were long the stock, with a total position value of $48 billion.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Meta Platforms, Inc. is a communications services conglomerate managed by Mark Zuckerberg that operates social media platforms such as Facebook, Instagram, and WhatsApp. According to Zuckerberg, who spent $10 billion to develop the metaverse in 2021 alone, the firm just changed its name from Facebook to its current name to herald the beginning of the next chapter of the internet.
As of October 13, Cowen’s John Blackledge has an Outperform rating on Meta Platforms, Inc.. The analyst also set a price target of $205 on the stock.
Gene Munster, an analyst at Loup Ventures, stated in October that Meta Platforms, Inc. is poised to become a technology industry leader. According to the analyst, if interest rate increases slowly and investors resume betting on riskier stock returns, the company will be well-positioned to become a prominent tech stock.
In the second quarter, Meta Platforms, Inc. was found among the 13F holdings of 184 hedge funds. The entire value of their shareholding was $18.2 billion.
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 153
Alphabet Inc. is one of the market’s Big Five interactive media and services companies. Under Project Iris, the corporation has begun developing its operating system for metaverse headsets, and it is spending heavily in metaverse initiatives in general. It is headquartered in Mountain View, California.
As of October 11, Stephen Ju of Credit Suisse has an Outperform rating on Alphabet Inc.. The analyst also set a price target of $134 on the stock.
Alphabet Inc. shares are up in October, up 1.4% in early trade on October 18.
In the second quarter, 153 hedge funds were long Alphabet Inc., up from 160 in the previous quarter. Their respective stake values were $22.3 billion and $29.7 billion.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 84
NVIDIA Corporation is a semiconductor business that specializes in graphics, computation, and networking products. As part of its efforts to interact with the burgeoning metaverse, it unveiled NVIDIA Omniverse, a new platform for virtual collaboration and simulation, last year. The corporation has operations in the United States, Taiwan, China, and globally.
On October 18, Deutsche Bank analyst Ross Seymore reiterated his Hold rating on NVIDIA Corporation. The analyst also set a price target of $140 on the stock.
NVIDIA Corporation gained 6% in October, propelling semiconductor stocks higher in the market. The increase occurred as a result of investors’ concerns being alleviated by fiscal policies emanating from the United Kingdom, as well as Broadcom’s request to the European Union for early approval of the VMware acquisition.
In the second quarter, 84 hedge funds out of 895 monitored were long NVIDIA Corporation. The entire value of their stake was $3.3 billion.
6. QUALCOMM, Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 71
For more than a decade, QUALCOMM, Incorporated, has been substantially investing in the metaverse. The Snapdragon Metaverse Fund is worth $100 million, and the Snapdragon XR1 and XR2 platforms are designed to satisfy the needs of virtual and augmented reality devices. In
September, it also collaborated with Meta Platforms on spatial computing driven by Snapdragon extended reality (XR) platforms and technologies.
On October 24, HSBC analyst Frank Lee commenced coverage of QUALCOMM, Incorporated shares with a Buy rating and a $180 price target. Frank Lee stated that it was well-positioned for future growth. In the same month, the company paid a quarterly dividend of $0.75 per share, and it has increased its payout for the past 18 years in a row. As a result, the stock is also a good income investment option.
In the second quarter, 71 hedge funds were long QUALCOMM, Incorporated, with a total holding value of $2.8 billion. Bailard Inc was the company’s largest shareholder, with 159,063 shares worth $17.9 million.
QUALCOMM, Incorporated, like Meta Platforms, Inc. NVIDIA Corporation, and Roblox Corporation, is one of the metaverse companies sought for by several elite hedge funds this year.
