Since Facebook’s recent name change and a new focus on the metaverse, there’s been an enormous excitement about the idea of a virtual universe that could be able to replace the internet of today. That could mean a substantial new investment opportunity for investors, as per Morgan Stanley.
Morgan Stanley sees the metaverse as a vast market opportunity worth $8 trillion.
Wall Street firm Morgan Stanley believes that the metaverse is an addressable market of $8 trillion that could become the “next generation of social media streaming and gaming platform.”
“Like other online platforms, we anticipate the metaverse initially and foremost function as an e-commerce and marketing platform to purchase and sell offline goods,” wrote analyst Brian Nowak.
The company’s top stock to invest in would be Meta (formerly Facebook) because of the longevity in its primary business, as well as an impressive free cash flow, even when it invests billions of dollars to “build the next-generation version of social networks.”
Morgan Stanley analysts also like gaming company Roblox, which claims will benefit from its 47 million active daily players and “strong” algorithm for monetization to take advantage of the metaverse’s advertising and online shopping potential.
The company picked out several other stocks that it believes could benefit from the growing acceptance of the metaverse idea, which includes those focused on augmented reality, such as Alphabet, a Google parent company Alphabet, and social network platform Snap.
It is also a fan of Unity Software, the most popular engine in video games that might assist in creating content for the virtual world, as per the company.
Facebook’s change of name to Meta in the last month ushered in the company’s shift to the metaverse, a concept of a virtual world that can be accessed through smartphones or headsets, in which people can be active, social, and work. While the metaverse remains only an abstract concept, it is a vast field of possibilities with the notion that numerous types of virtual worlds could transform the way people communicate. While Facebook is leading the way in this area, several corporations, including Microsoft and Disney, have begun exploring the possibilities of the metaverse.
“We believe that the Metaverse is the next generation of Mobile Internet,” Facebook CEO Mark Zuckerberg stated last month when he revealed the branding change to Meta.