Despite a decline in revenue from the metaverse-driven segment Reality Labs, investors have not abandoned their fascination with stocks about the metaverse. Facebook parent Meta Platforms continues to funnel massive investments into its research and development of the technology, as it has shown potential for users to comprehend our physical universe at an increased rate. This indicates that two companies likely to gain from these improved sentiments are Apple and Unity Software – both being top contenders in the field.
Apple’s Metaverse-Focused Products Could Help It Take the Leap It Needs
Contrary to what some may think, Apple has become a hotbed for metaverse technology. As the world’s leading augmented reality (AR) platform, it has generated hundreds of millions of AR-enabled gadgets and thousands of apps. Now they are ready to take their tech even further – by releasing a headset that no longer requires controllers! Instead, this upcoming device is designed with hand and eye-tracking technology to detect motion without any other input source.
Although the rumored retail cost of $3,000 might only be attractive to high-end consumers, if rumors of a more affordable second-generation model also turn out to be accurate, then Meta will face considerable competition as they appear to have become reliant on this market for new development.
Additionally, Apple’s headset would be their first new product since 2015 – the release of the Apple Watch. This could significantly boost their revenue and give them a much-needed surge in growth. Even during the tech bear market of 2022, where many stocks dropped by large percentages, Apple stocks only saw around a 10% decrease – illustrating its strength as an investment option. Therefore, a metaverse-driven product may be just what is needed to reinvigorate this powerful company back into a success!
Unity Might Be a Good Choice for Those Looking for a Slightly Riskier Stock
Risk-tolerant investors may be drawn to Unity, a real-time development platform that has become one of the critical components of the metaverse. Although its software is well known as an effective gaming development tool, Unity could soon extend beyond this realm and enter industries such as architecture, automotive, and film. Even with all its potential, though, it wasn’t immune to last year’s bear market; its SaaS stocks dropped by almost 90% from 2021’s peak!
Not only is this company a smart long-term investment, but its financials are impressive. Last year they generated $1.4 billion in revenue – a 25% increase from 2021! Additionally, the customer count for those who spent more than $100K remained unchanged last year, even with the ironSource acquisition. Unfortunately, that did not prevent their net loss from growing to over 900 million dollars; despite this setback, it’s still an excellent buy going into 2022 and beyond!
Given this news, it is likely that these stocks will not perform well in the immediate future. Moreover, due to its lack of GAAP profitability, Unity does not have a P/E ratio. Nevertheless, with a price-to-sales (P/S) ratio of 7, which is marginally higher than its record-low valuation, investing now could lead to significant gains down the line as Unity becomes an essential part of the metaverse.
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