7 Virtual Reality Stocks That Could Create the Future of Entertainment

Virtual reality (VR) stocks ride the coattails of trends seen in the market, such as metaverse, cloud gaming and immersive entertainment experiences. Virtual reality brings them together, and I think we’re just beginning to see its full potential.

The VR market, which is expected to be worth $22.81 billion by 2024, is expected to grow exponentially, driven by hardware and software innovation. Companies leading the way are not only changing the way we entertain ourselves but also the way we communicate with others in general. My view is that over time, society will live in a deeper and deeper world. However, this will be a gradual change rather than a seismic shift. Instead of all of us being plugged into VR headsets, we’ll be interacting with other worlds embedded in the apps and websites we already use, especially in the realm of social media.

So, in order to take advantage of this trend in the entertainment industry, here are seven real stocks for investors to consider.

Meta Platforms (META)

Meta Platforms (NASDAQ:METER) is a stock that has been criticized in the past for dominating the metaverse’s opinion in the crowd. However, my opinion is that it puts itself at the forefront of a gradual transition to visible areas, and its results in a short period of time speak volumes.

With revenue of $39.07 billion, a 22% year-over-year (YOY) increase, and revenue up 73% last quarter, it would be hard to argue that the company is on the wrong track – at least temporarily short. . Meanwhile, for investors who are interested in META as one of the real stocks available in the gaming industry, I think the best is yet to come. The company’s flagship product in this area, the Meta Quest series of VR headsets, has established Meta as a leading player in the VR gaming industry, with critics citing it as one of the best in Best in terms of price and features provided.

Qualcomm (QCOM)

Qualcomm (NASDAQ:QCOM) is one of the real stocks to consider if an investor wants pick-and-shovel exposure to the industry. The company supplies key semiconductors to a variety of industries, including VR. They can also be found in applications ranging from self-driving cars to Industrial Internet of Things (IIoT) devices. I like QCOM stock because it’s not overly concentrated in any one industry, so it offers a lot of diversification benefits.

QCOM is making its presence felt in the gaming industry with its Snapdragon platform, which powers many of the world’s leading gaming smartphones. In its third fiscal quarter of 2024, Qualcomm reported strong revenue growth, with its QCT (Qualcomm CDMA Technologies) division generating $8.07 billion, an increase of 12% YOY.

One of the biggest trends I see from QCOM in the gaming industry is the rollout of 5G and increasing the speed of mobile networks. I don’t think we are too far away from where mobile multiplayer games can be played on this network with low ping or latency, which greatly reduces user friction to enjoy entertainment on the go.

Unity Software (U)

Unity Software (NYSE:U) is one of the real stocks that fits well with options and spades. It offers its Unity game engine, which is increasingly used in VR games to create a virtual world, especially by independent developers.

The Unity platform is responsible for 70% of the top mobile games and has been downloaded 3.7 billion per month, according to the results they recorded last quarter. Unity 6, which is set to launch in the fall of 2024, promises to be the most stable and efficient version of the software yet. I see it having a growing use case for VR devices, including Oculus, HTC Vive and PlayStation VR.

It is too early for Unity software to be used in virtual environments, as its engine is used mainly in mobile gaming. However, as demand increases, I think its engine will be a popular choice for developers who choose to create games in VR as they are probably already familiar with building games with it.

Roblox (RBLX)

Roblox (NYSE:RBLX) is probably one of the best real stocks for investors looking for a gamble. – their portfolio. While RBLX is known for its presence in the PC and console market, Roblox leverages its global community of developers to design and build VR experiences that can be enjoyed by device users. innovations, including VR headsets.

There are several reasons why I think RBLX stock could be a good opportunity for investors. Roblox enables creators to experiment with new forms of digital interaction, from social experiences to complex games, enabling easy transition for some of these things to be done around the world.

Moreover, its core business also showed great strength in the last quarter. Revenue increased 31% YOY to $893.5 million, and books increased 22% to $955.2 million. The company saw a record daily active users (DAUs) of 79.5 million, up 21%. This makes it one of the best stocks for investors to consider.

Alphabet (GOOG, GOOGL)

Alphabet (NASDAQ:GOOGNASDAQ:GOOGLE) is one of the gatekeepers of VR content online, and I expect it to continue to play an important role in the future with its Google services, especially YouTube and Google Play, supporting VR content and experiences. It acts as the main distributor of content that people can access.

The company reached $84.7 billion in revenue last quarter, with major contributions from Google Services and Google Cloud, the latter exceeding $10 billion in quarterly revenue for the first time.

GOOG stock has a stranglehold on the hardware market as well as the online streaming market through its YouTube platform. As gaming and VR experiences continue to be released on the platform, I expect this to be a big help for the company going forward.

I like GOOG stock because of its solid position in the online advertising market, and it stands to benefit from the rise of VR as an additional tailwind.

Matterport (MTTR)

I like autobiographies Matterport (NASDAQ:MTTR) in the VR games industry, especially when one establishes its long-term position and short-term results in the last quarter, with a total revenue of up to $ 42.2 million, driven by an increase of 16 % YOY of investment income at $ 24.2 million. The company also saw a 28% increase in total subscribers to 1.06 million.

MTTR stock has great potential in VR gaming and is one of the main reasons why I am optimistic about its future. By transforming physical spaces into immersive, interactive 3D models, Matterport helps developers and gamers create and explore virtual environments. This is achieved through its digital twin technology and spatial data platform.

It can be a great feature in a realistic game, such as turning city streets into simulations or real forests in a horror or survival game. I expect great things in the future for MTTR stock as it enters the gaming market in VR.

Take-Two Interactive (TTWO)

Take-Two Interactive (NASDAQ:WATCH OUT) is another publisher with a similar approach to RBLX that stands to benefit directly from VR games through its established and captured platform. Its titles such as “Grand Theft Auto” and “NBA 2K” could be the main target for the company to try to develop virtual worlds. It has exclusive rights to some of the most popular video games in the world, especially sports, so I think it could be a prime investment target for those looking to get involved in the gaming industry. VR.

Last quarter, it reported 1.22 billion dollars in online books, the conference guide. GAAP net income grew 4% YOY to $1.34 billion. However, it also reported a GAAP net loss of $262 billion.

However, for investors who are serious about the possibilities of VR gaming, which is aware that we have not yet seen the beginning of its potential, stocks like RBLX and TTWO may be worth considering for firms with both want to expand their catalogs.

At the date of publication, Matthew Farley did not have (either directly or indirectly) any of the compensation conditions mentioned in this article. The opinions expressed are those of the author, in accordance with InvestorPlace.com Publishing Guidelines.

On the day of publication, the editor in charge had a long tenure at GOOG.