Metaverse stocks could be ‘ripe for recovery’ this month following a turbulent January in which many of the businesses involved in the sphere saw their share prices tumble.
So, which particular metaverse stocks have been tipped to perform well this month? Let’s take a look.
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What are metaverse stocks?
Metaverse stocks refer to companies that are involved in the digital ‘metaverse’. If you don’t know what the metaverse is, don’t worry – you probably aren’t alone!
The term is broadly defined as a three-dimensional world that is accessible to millions of people. In other words, it can refer to a virtual space that enables you to interact socially with others, either for business or pleasure.
For example, if you’ve ever used an Oculus or PlayStation VR headset, then it’s likely you have experienced the metaverse – especially if you’ve communicated with others on a virtual basis through these platforms.
You don’t need to have a fancy VR headset to experience the metaverse, however. Popular online PC games, such as Fortnite and Minecraft, are considered to utilise the metaverse too. That’s because these games support online interactions with millions of other plays.
The metaverse can also encompass ‘augmented reality’, which refers to combining the virtual and the real world. An example of an augmented reality application is Pokemon Go. This is a mobile game that took the world by storm in 2017, before seemingly falling into obscurity.
While the metaverse is currently focused on fun, social elements, many believe there is huge scope for its growth. For example, it could become a place where business meetings are conducted in future. It may also become the primary place where we buy and sell goods to each other.
What has happened to metaverse stocks recently?
According to IG, metaverse shares are at their “lowest in months” following market-wide selloffs. ‘Meta’ – the new name for Facebook – is one such stock that has seen its value plummet recently.
IG does, however, suggest that February could prove a good month for these types of shares. The investing platform claims that there are signs of an ‘overcorrection’ in the market.
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Which stocks have been tipped to perform in February?
IG suggests that there are four metaverse stocks to watch out for this month.
1. DocuSign
DocuSign enables the signing of documents digitally, via an e-signature. Its share price has gone from $310 (£229) in September to $117 (£86). This represents a fall of 60%.
However, this recent drop is perhaps surprising given the company remains a leader in its field. As a result, many of its investors will be hoping its price will recover to previous highs seen last year.
2. Roblox
Founded in 2004, Roblox is an online gaming platform that allows users to program and play games created by other users. The company’s share price has plummeted by 44% over the past month due to concerns surrounding interest rate rises in the United States.
Despite the drop, IG suggests the company has an edge over its competitors due to its ability to ‘respond rapidly’ to emerging trends.
3. Advanced Micro Devices (AMD)
Advanced Micro Devices is a semiconductor company that makes computer processors. Its share price has dropped 27% since the start of the year.
However, the company has had better news recently, following a tie-up with ‘Xilinx’, a Chinese chip manufacturer. So, is AMD’s share price set for a better performance this month?
4. Nvidia
Nvidia is a company that designs graphics and processing units. Its share price fell 22% in January. However, IG highlights that despite Nvidia’s recent fall, its share price has increased by over 700% in five years!
The company recently announced it will be Meta’s primary partner and is hoping to build a world-leading supercomputer. If successful, there’s every chance Nvidia’s share price will climb.
How can you invest in metaverse stocks?
It’s important to note that any stocks can rise and fall in value. As a result, it’s worth conducting your own research before deciding to invest in any individual stock.
If metaverse stocks do interest you, then you can invest in companies in this sector by opening a share dealing account and picking investments that are involved in the sphere.
Are you new to investing? If so, take a look at The Motley Fool’s investing basics to get you going in the right direction.
