Broadly speaking, metaverse refers to an alternate reality, a ‘mirror world’ where people work and socialize, a collective shared virtual space created by the convergence of physical reality and virtual reality. With cryptocurrencies and blockchains now coming to the fore…
with a growing understanding of their scope, metaverse has been gaining steam.
Recently, several tech and gaming companies have been increasing efforts to build a metaverse. As a result of this push, the virtual reality market is expected to grow by $75.57 billion, at a 55.3% CAGR , between 2020 – 2025.
Given this backdrop, we think it could be wise to invest in tech stocks Microsoft Corporation (MSFT – Get Rating), Meta Platforms, Inc. (FB – Get Rating), Taiwan Semiconductor Manufacturing Company Limited (TSM – Get Rating), and Immersion Corporation (IMMR – Get Rating) to cash on the emergence of this revolutionary technology. These stocks are among the top 11 holdings in the Roundhill Ball Metaverse ETF (META), which has gained 8.8% over the past month, and 3% over the past five days.
Microsoft Corporation (MSFT – Get Rating)
MSFT is a Redmond, Wash.-based software behemoth that provides software services, solutions, and devices all over the world. The company has a more than $2 trillion market capitalization.
On November 1, MSFT partnered with data-driven commerce platform, Bango, to enable Telcos, data providers, banks, and retailers to bundle MSFT offerings as a part of their customer offers. The partnership is expected to leverage the Bango platform and appeal to bundled media subscriptions.
In September, the company declared a multi-year commitment to provide Microsoft security solutions for cyber insurance, through an agreement with cyber insurance company At-Bay. Ann Johnson, Microsoft’s Corporate Vice President of Security, Compliance & Identity (SCI) Business Development, said, “Microsoft’s partnership with At-Bay brings important clarity and decision-making support to the market as organizations everywhere seek a comprehensive way to empower hybrid workforces with stronger, centralized visibility and control over cloud applications boosting security and productivity.”
MSFT’s total revenue increased 22% year-over-year to $45.32 billion in its fiscal first quarter ended September 30. Its operating income climbed 27.5% from the prior-year quarter to $20.24 billion. Its net income and EPS stood at $20.51 billion and $2.71, respectively, registering an increase of 47.6% and 48.9% year-over-year.
Analysts expect MSFT’s EPS to improve 14% year-over-year to $9.18 in the current year (fiscal 2022), while the Street’s $196.37 billion revenue estimate for the current year indicates a 16.8% rise from the prior year. In addition, the stock has beaten consensus EPS estimates in each of the trailing four quarters.
MSFT’s stock has gained 62.7% in price over the past year to close yesterday’s trading session at $329.37. It has gained 48.1% year-to-date.
MSFT’s strong fundamentals are reflected in its POWR Ratings. The stock has an B rating, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
The stock has a B grade for Stability, Sentiment, and Quality. It is ranked #17 of 160 stocks in the Software – Application industry. To see the additional POWR Ratings for Growth, Value, and Momentum for MSFT, click here.
Meta Platforms, Inc. (FB – Get Rating)
FB is the biggest social media company in the world. As the owner of WhatsApp, Instagram, and various other companies, FB has operations in numerous fields. The company is based in Menlo Park, Calif.
On October 28, FB CEO Mark Zuckerberg introduced Meta, bringing Facebook’s app and technologies under a new brand, with the expectation of helping people connect and grow their businesses.
For its third fiscal quarter, ended September 30, FB’s total revenue increased 35.1% year-over-year to $29.01 billion. Its income from operations rose 29.6% from the prior-year quarter to $10.42 billion. Its net income improved 17.2% from the same period last year to $9.19 billion, while EPS increased 18.8% year-over-year to $3.22.
A $13.99 consensus EPS estimate for the current year (fiscal 2021) indicates a 38.7% year-over-year increase. Likewise, the $118.01 billion consensus revenue estimate for the current reflects a 37.3% improvement from the prior year. Furthermore…
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