The 3 Best Metaverse Stocks to Buy in January 2024

Stocks to buy

The metaverse is here to stay, and no matter how difficult it is for companies to adapt it or make it usable, it is a tool that will contribute to our future and technology. Companies are developing incredible things and working tirelessly for the metaverse, here you have these three best metaverse stocks to take a look at.

Snap (SNAP)     

The Snapchat (SNAP) and Instagram apps on displayed on an iPhone, which sits on a gray background.

Source: BigTunaOnline / Shutterstock

Snap (NYSE:SNAP) is making waves in the tech world with its popular platform, Snapchat. The company just reported its Q3 2023 financial results, in which it reported a 5% year-over-year increase in revenue to $1.189 billion and a 12% increase in daily active users to 406 million.

Although there was a net loss of $368 million, adjusted EBITDA was positive $40 million, demonstrating the company’s improved cost structure. This makes it one of those metaverse stocks to considier.

CEO Evan Spiegel expressed his enthusiasm for the positive growth and stressed his commitment to improving the advertising platform for better returns on investment.

In a notable move, COO Jerry Hunter announced his retirement after seven years at Snap. Hunter played a crucial role in building the company’s foundation.

To support shareholder value, Snap’s board authorized a share repurchase program of up to $500 million to offset dilution from employee stock units. This strategic move leverages Snap’s strong balance sheet for the benefit of its investors.

Snap Inc. is not stopping at social media but is diving into the enterprise world with AR Enterprise Services. ARES is a new enterprise solution that seamlessly integrates Snap’s augmented reality technology into enterprise channels.

The first offering, Shopping Suite, is already making waves with companies such as Goodr, Princess Polly, and Gobi Cashmere seeing positive results. ARES aims to transform the shopping experience, offering consumers immersive interactions and personalized experiences with their favorite brands.

Jill Popelka, head of AR Enterprise Services at Snap, shared the company’s enthusiasm for bringing AR technology to businesses’ websites, apps, and even physical locations.

ARES unifies Snap’s augmented reality technology with the acquisitions of Vertebrae, Fit Analytics, and Forma, laying the groundwork for a comprehensive augmented reality enterprise offering.

Early results from ARES are promising, as companies have seen significant improvements in purchase rates, conversion rates, and reduced return rates by incorporating features such as AR Try-On and Fit Finder.

Sea (SE)

An image of a person wearing a VR headset looking up, a nebulous digital cloud in the upper corner

Source: Vit-Mar/Shutterstock

Sea (NYSE:SE) is one of those exciting metaverse stocks with a presence in several digital sectors, making it an attractive option for investors.

In the third quarter of 2023, the company showed solid financials, with total revenues of $3.3 billion, up 4.9% year-over-year. What is even more impressive is the significant drop in net losses to ($144.0) million, a remarkable improvement.

Sea Ltd’s e-commerce arm posted stellar results, with revenues of $2.2 billion, a solid year-on-year growth of 16.2%.

The digital entertainment segment also shined with $592.2 million in revenue and 544.1 million active users. Meanwhile, the digital financial services division saw a remarkable 36.5% year-on-year revenue increase with $446.2 million.

Adding a touch of social responsibility, Sea Ltd launched +Negritude on Shopee, a page dedicated to celebrating Afro-Brazilian culture with products from black entrepreneurs. This initiative, in partnership with Shopee’s racial equity group, aims to highlight diversity during Black Consciousness Month.

On the international front, SeaBank Indonesia scooped the award for “Best MSME Lending Banking Performance 2023,” underscoring Sea Ltd’s commitment to supporting small businesses. This makes it one of those metaverse stocks to buy.

With a diverse business portfolio and a socially conscious approach, Sea Ltd is emerging as an attractive option for investors eager to ride the waves of digital evolution.

Roblox (RBLX)

An illustration of the Roblox game is displayed on a smartphone screen.

Source: Miguel Lagoa / Shutterstock.com

Roblox Corporation (NYSE:RBLX), is a global platform where millions of people come together to create and enjoy shared virtual experiences.

In the third quarter of 2023, they posted solid financial results, with revenue of $713.2 million, up 38% year-over-year. Despite a net loss of $277.2 million, the platform’s net cash from operating activities increased by an impressive 68% to $112.7 million.

With 70.2 million average daily active users and 16 billion hours of engagement, Roblox continues to thrive as a vibrant online gaming universe.

Recently at Cannes Lions, Roblox unveiled the Roblox Partner Program, an initiative aimed at fostering brand innovation and establishing a global advertising ecosystem on its platform.

The community-focused program involves key players such as CENTURY GAMES, DENTSU, and others, who have committed to supporting brands entering the immersive space. The program offers incentives and transparent pricing for all partners, creating a collaborative environment for brands to grow on the platform.

In an exciting collaboration with the Parsons School of Design, Roblox presented a semester-long project in which students created digital costumes within the Roblox universe. These virtual designs, ranging from navy prints to gravity-defying water droplets, blur the boundaries between gaming, creativity, and fashion.

This unique educational initiative not only engages students but also highlights the platform’s potential for creative expression beyond gaming. All in all, it’s one of those metaverse stocks investors should heavily consider buying.

As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines (no position)

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