The 3 Best Metaverse Stocks to Buy in May 2024

Stocks to buy

Meta Platforms (NASDAQ:META) is still losing billions of dollars on the metaverse. In fact, in the company’s latest earnings call, CEO Mark Zuckerberg spent a good deal of time talking about how Meta loses money, including the $3.8 billion it lost on the metaverse. Still, Zuckerberg isn’t giving up on the metaverse just yet, which is creating opportunity for some of the best metaverse stocks to buy today.

Instead, he’s now associating his metaverse plans with artificial intelligence. As noted by a LinkedIn.com article, “Zuckerberg believes that the integration of AI and the metaverse will revolutionize the way we interact with technology and each other.”

Even companies like Walmart (NYSE:WMT) are selling “real world” goods in the Roblox (NYSE:RBLX) gaming environment, which is reigniting metaverse commerce, says ChainStoreAge.com.

“Walmart’s IRL commerce shop in its Roblox experience enables users to check out real world items chosen by its partner user generated content (UGC) creators. Walmart is adjusting its merchandising strategy to fit the metaverse, which by itself should make metaverse and retail observers sit up and take notice,” they added.

In short, don’t off the metaverse just yet. Instead, you may want to use weakness as an opportunity with some of the best metaverse stocks to buy today, such as:

Roblox (RBLX)

Source: Katya Rekina/ Shutterstock.com

One of the best metaverse stocks to buy today is Roblox.

For one, after plummeting to a low of $33.71, Roblox is exploding higher. Last trading at $40.54, if it can break above double-top resistance, it could test $43 next.

Two, the company is opening a new ad format as it looks for more ways to monetize its free games. That will include video ads running on virtual billboards and other screens from companies like e.l.f. Beauty(NYSE:ELF), Walmart and Warner Bros. (NASDAQ:WBD). By doing so, advertisers will be able to reach more than half of its 71.5 million daily active users.

Three, Roblox is also running on a JPMorgan upgrade, with a price target of $48. 

“The crux of our bull thesis is that we believe RBLX has a significant monetization opportunity ($0.06 per hour with 80% of hours not monetized) and [management’s] focus on margin leverage, which we expect to result in FCF compounding 40%+ through 2027,” said the firm, as quoted by Seeking Alpha.

Roundhill Ball Metaverse ETF (METV)

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There’s also the Roundhill Ball Metaverse ETF (NYSEARCA:METV). With an expense ratio of 0.59%, the ETF holds 38 metaverse-related holdings, all of which should benefit from the metaverse’s potential $5 trillion impact by 2030. Some of its top holdings include Apple (NASDAQ:AAPL), Roblox, Meta Platforms, Nvidia (NASDAQ:NVDA), Unity Software (NYSE:U), and Microsoft (NASDAQ:MSFT) to name a few of them. 

At the moment, the ETF trades at just under $12.50, so I can spend about $1,250 for 100 shares. And I can diversify with the fund’s 38 holdings. Or, I can go out and just buy 100 shares of Nvidia and spend closer to $91,000. 

Since bottoming out at around $7 in late 2022, the ETF exploded to a recent high of $12.49. From here, if the metaverse story can gain traction, it could double, if not triple in value—with a good deal of patience. With the METV ETF, simply buy it, forget about it, and check back in on it in a few months.

Unity Software (U)

Source: viewimage / Shutterstock.com

Down but not out, shares of Unity Software are sitting at strong support. In fact, if you pull up a two-year chart, you can see it’s holding and bouncing from the same support level for the seventh time since Nov. 2022. From its current price of $25.32, based on history, we’d like to see it retest around $35 a share.

Helping, analysts at William Blair have a buy rating on the stock. Analysts at Wedbush have an outperform rating on the stock, with a price target of $33.50. 

And, as noted by Investorplace contributor Jeremy Flint, “Unity generates positive cash flow through a substantial advertising network. The ability to generate profit bolsters Unity’s stability amid broader market volatility, sustaining the company until metaverse investments garner broader institutional appeal.”

Much like the METV ETF, buy Unity Software, forget about it, and check back in on it in a few months. I’d like to see this one double, with patience.

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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