What Are the Hottest Metaverse Stocks Right Now? 3 Top Picks.

Industry Overview - The global metaverse market is projected to grow from $92.46 billion in 2023 to nearly $2.3 trillion by 2033, indicating significant growth potential [1] - Major corporations such as IKEA, McDonald's, Nike, and Walmart are actively investing in metaverse technologies [1] - Governments, including those of the UK, South Korea, and Saudi Arabia, are also investing in metaverse initiatives, with Saudi Arabia committing $1 billion as part of its Vision 2030 plan [1] Company Analysis: Roblox (RBLX) - Roblox is identified as a pure play in the metaverse, currently trading at $36.53 after a recent pullback from a high of $42 [2] - The company has raised its bookings forecast to between $4.18 billion and $4.23 billion, up from previous estimates of $4 billion to $4.1 billion [2] - Free cash flow estimates have been increased to a range of $505 million to $535 million, compared to earlier estimates of $350 million to $420 million [2] - Revenue expectations have also been adjusted upward to between $3.49 billion and $3.54 billion, from $3.45 billion to $3.53 billion [2] - The company reported a 21% year-over-year increase in average daily active users to 79.5 million, with revenue rising 31% to $893.5 million [3] Company Analysis: Autodesk (ADSK) - Autodesk is recognized for its AutoCAD software, which is becoming essential for creating virtual worlds in gaming and entertainment [5] - The company has received a $500 million investment from activist investors Starboard Value, who are advocating for improved margins and board changes [5] - Autodesk's first-quarter earnings per share of $1.87 exceeded estimates by 10 cents, with revenue of $1.42 billion reflecting an 11.66% year-over-year increase [5][6] Investment Option: Fidelity Metaverse ETF (FMET) - The Fidelity Metaverse ETF offers diversification with an expense ratio of 0.39% and has recently shown signs of support after a market pullback [7] - The ETF includes 52 metaverse-related stocks involved in the development, manufacturing, distribution, or sale of metaverse products and services [7] - Notable holdings in the ETF include Adobe, Apple, Microsoft, Alphabet, Meta Platforms, Nvidia, and Advanced Micro Devices [7]