What to look for when investing in METAVERS

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When I watched The Matrix for the first time, I was still a teenager. Yet I’ve captured multiple insights that assisted me in visualizing the interaction between AI and our daily life, how it interferes in every single bit in it. And I can tell that the world wont stop here.

Now days I wont be surprised if I schedule a meeting in a different world or visit the countries that I’ve always planned to go to from my desk and just have the same feeling. All of this and many more applications can be applied through the upcoming life changing term, Metaverse.

October 2021, Mark Zuckerberg announced that Facebook (FB) is now called Meta Platforms (MVRS). And we all know that its not just a random name change. Mark has a vision, by this big step he is building the infrastructure of this new technology. In 2022, MVRS approximate investment would be roughly around $34 billion. It will be mainly in data centers and servers, $15 billion would be the difference between 2021 and 2022. These investments will be the foundation for other companies to join this field directly and allow users to participate visually.

Meta will allow fictional interaction, a 3D copy of you can travel, attend meetings abroad, play and shop while you are still on your couch. Metaverse’s goal is to combine all digital factors which will include cryptocurrencies, digital assets and NFTs.

Which companies to invest in for metaverse? To answer this question we have to define metaverse operative methods.

  • Computation: companies enabling and supply of computing power to support metaverse.
  • Networking: companies providing real-time connections, high bandwidth and data services to consumers.
  • Virtual platforms: companies developing and operating immersive digital and often 3D simulations, environments and worlds wherein users and businesses can explore, create socialize and participate in wide variety of experiences.
  • Interchange Standards: companies building tools, protocols, formats, services and engines which serve as actual or de facto standards for interoperability and enable the creation, operation and ongoing improvements of metaverse.
  • Payments: the support of digital payment processes and operations. Which includes fiat, cryptocurrencies and financial services.
  • Content and Identity services: The design / creation, sale, re-sale, storage, protection and financial management of digital assets.
  • Hardware: The sale and support of physical technologies and devices used to access, interact with the development of metaverse.

When Mark announced metaverse some companies and coins spiked immediately. Investors are keen to know which stock is a good pick to build a profitable MVRS portfolio. All eyes on FB which will be the main stock in this portfolio. I will include some other stocks which falls under the above services.

Unity Software Inc. is a video game software development company based in San Francisco. It provides gaming engine with a powerful 3D solutions and VR. It introduced recently a gaming engine that supports meta fully.

NVIDIA Corporation. Is an American multinational technology company incorporated in Delaware and based in Santa Clara, California. It designs graphics processing units for the gaming and professional markets, as well as system on a chip units for the mobile computing and automotive market. Meta will obviously needs graphic cards, AI and machine learning chips.

 Arista Networks Inc. Is an American computer networking company headquartered in Santa Clara, California. The company designs and sells multilayer network switches to deliver software-defined networking for large datacenter, cloud computing, high-performance computing, and high-frequency trading environments. We can see an immediate effect of metaverse on (ANET). Since announcement, the price increased 50%.

Shopify Inc. is a Canadian multinational e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. Shopify and FB can support the e-stores in metaverse.

Sony Group Corporation. Is a Japanese multinational conglomerate corporation. As a major technology company, it operates as one of the world’s largest manufacturers of consumer and professional electronic products, the largest video game console company and the largest video game publisher.

It’s still a little early to call META a definite success, but it looks like it’s on its way there. We are still in the early phase of Metaverse, many more companies will join this wave which includes Amazon, Microsoft and Roblox. I will keep adding stocks to my portfolio overtime, and hopefully we can by the upcoming years travel the world virtually.