Cons
- Questionable profitability: How will the metaverse be monetized, and which companies have the clearest path to profits? Those questions are hard to answer right now. If any company were to profit from the trend, it would seem to be Meta Platforms. However, the company has racked up billions of dollars in losses from its metaverse ambitions so far, and the situation hasn't materially improved.
- Waning interest: Meta Platforms plans to cut spending on its metaverse platform and shift its investments to virtual reality devices. This company was so committed to the concept that it changed its name to reflect its focus. But if even Meta Platforms is starting to lose some of its zeal, perhaps the metaverse trend will never materialize as many people had hoped.
How to choose the right metaverse stock
The right metaverse stock is subjective because investing is personal. Some investors are looking for the safest metaverse stock. This will likely be a metaverse stock with a proven profitable growth engine.
Other investors might look for the metaverse stock with the greatest upside potential over the next decade. This could theoretically be a stock that an investor seeking safety would avoid.
The point is that there isn't a right or wrong metaverse stock. There's risk to investing in any stock. And every investor will need to personally assess the risks before investing.
How to invest in metaverse stocks
- Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly
Future outlook for the metaverse
Many market researchers still forecast substantial long-term growth for the metaverse, even though investor enthusiasm has cooled considerably. While investors should always take third-party research with a grain of salt, there are indeed still some reasons to believe the metaverse could yet be valuable.
Specifically, metaverse platforms need to be detailed and expansive to truly attract users. These are cumbersome to create manually. But the advent and improvements of generative AI are making it easier to create digital content. In short, generative AI can lead to better metaverse content, potentially catalyzing adoption.
Metaverse hardware devices have improved in recent years, and it's reasonable to expect further meaningful advances. This, coupled with better content, could finally attract a critical mass of metaverse adopters, providing a glimmer of hope for the metaverse.
